High School Financial Planning Program Lesson 1-1 Money Habits (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits SMART GOALS Today you will . . . figure out a plan to achieve personal financial goals. . Display this slide as you transition into the lesson. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Teen Spending In what situations might a teen spend more than $100? This semester? In the next 12 months? More than a year from now? Display this slide as students brainstorm situations when a teen or young adult will purchase a big-ticket item during the year and in future years. Arrange for students to quietly write for a minute to list their responses without a pause in writing. After a minute, arrange for students to share their lists either in partners or as a whole class. Be prepared to use specific responses as examples throughout the lesson. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Preview Today we will answer these questions: How can your personal goals be achieved through money goals? How do you write an effective financial goal? How do you prioritize actions while working to achieve several goals at the same time? Use what you learn today to write financial goals for big-ticket items. Display this slide and distribute the Student Learning Plan as you introduce the lesson concepts. Preview what the students will be expected to do by the end of the lesson. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits “Shoot for the moon. Even if you miss, you’ll land among stars.” Musician Brian Littrell Display this slide as you lead a discussion about the value of setting goals. Use the party planning example on page 14 or another example of the need to plan backwards to set up goals (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits SMART Goals Specific Measurable Attainable Relevant Time-Bound (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

Is the Goal Specific? page 15 High School Financial Planning Program Lesson 1-1 Money Habits Is the Goal Specific? page 15 What exactly needs to be accomplished? Who else will be in involved? Where will this take place? Why do I want to accomplish this goal? Mike needs to replace all four tires on his car because the treads are worn out. Point out that to be effective, a goal must be well defined, clear, and doable. Use the series of SMART slides to introduce students to questions they might ask to ensure that their financial goals are SMART. Use Mike’s situation (need for new tires) to provide an example of writing goals (or improvise with any appropriate relevant examples. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Is the Goal Measurable ? How will I know I succeeded? How much change needs to occur? How many actions will it take? Mike needs to have tires on his car with treads that provide good traction when driving in snow and rain conditions. 1. Find out how much new tires will cost. 2. Save the money to buy tires. 3. Schedule an appointment to replace tires. Point out that to be effective, a goal must be well defined, clear, and doable. Introduce students to questions they might ask to ensure that their financial goals are SMART. Use Mike’s situation (need for new tires) to provide an example of writing goals (or improvise with any appropriate relevant examples. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Is the Goal Attainable? Do I have, or can I get, the resources needed to achieve the goal? Is the goal a reasonable stretch for me? (neither out of reach nor too easy) Are the actions I plan to take likely to bring success? Mike has money saved and is also working, so he can pay for the new tires. He also can compare prices at three businesses near his house. Point out that to be effective, a goal must be well defined, clear, and doable. Introduce students to questions they might ask to ensure that their financial goals are SMART. Use Mike’s situation (need for new tires) to provide an example of writing goals (or improvise with any appropriate relevant examples. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Is the Goal Relevant? Is this a worthwhile goal for me right now? Will it delay or prevent me from achieving a more important goal? Am I willing to commit to achieving this goal? Mike wants to replace his current, worn-out tires for new tires. This will improve fuel efficiency and reduce the risk of having a flat tire at an inconvenient time. Point out that to be effective, a goal must be well defined, clear, and doable. Introduce students to questions they might ask to ensure that their financial goals are SMART. Use Mike’s situation (need for new tires) to provide an example of writing goals (or improvise with any appropriate relevant examples. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Is the Goal Time-Bound? What is the deadline for reaching the goal? When do I need to take action? What can I do today? Mike needs to replace his tires by the end of next month. By the end of this week, he will request three quotes to compare tire prices. Point out that to be effective, a goal must be well defined, clear, and doable. Introduce students to questions they might ask to ensure that their financial goals are SMART. Use Mike’s situation (need for new tires) to provide an example of writing goals (or improvise with any appropriate relevant examples. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits Goal Makeover page 16 What’s wrong with each of these goals? How do you recommend improvement so they are SMART? Selena Save $100 for a trip to the outlet mall. Buy a new MP2 player. Michael Save money for college next year. Buy a new computer in January. Guide students to review how Selena and Michael revised their goals (page 16). Display this slide to prompt students to work with a partner to makeover the goals in Activity 1.6: SMART Goal Makeover (page 16). (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

Plan Ahead, Delay Spending High School Financial Planning Program Lesson 1-1 Money Habits Plan Ahead, Delay Spending Short-Term Up to three months Intermediate Three months to a year Long-Term More than a year Display this slide as you lead a discussion about juggling multiple financial goals with limited resources. Point out that “delayed gratification” means to hold off on a spending now to reap the benefits later. Use the responses from the opening activity to categorize goals as short-term, intermediate, or long-term for teens. Show how managing multiple goals may impact how attainable the goals are in the timeframe and with limited resources. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

More Than One Goal = Set Priorities High School Financial Planning Program Lesson 1-1 Money Habits More Than One Goal = Set Priorities On a scale of 1 (not at all) to 5 (extremely), how important is achieving this goal to me? Display this slide as you lead a discussion about the need to prioritize multiple goals when there are limited resources to fund the goals. (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

Challenge 1-A: Smart Goals High School Financial Planning Program Lesson 1-1 Money Habits Challenge 1-A: Smart Goals Create at least three financial goals that are specific, measureable, attainable, relevant to your life, and time-bound. Guide students to write two or three financial goals for their own lives or in cooperation with others for a team, club, or family goal. Encourage the students to write goals for situations that involve spending money on big-ticket items in three to 12 months (intermediate goal) and more than a year from now (long-term goal). (c) 2012 National Endowment for Financial Education www.hsfpp.org (c) 2012 National Endowment for Financial Education

High School Financial Planning Program Lesson 1-1 Money Habits If you are teaching additional units, preview upcoming lesson concepts and assignment/assessment deadlines. (c) 2012 National Endowment for Financial Education