Exploring Values, Needs & Wants

What are Values? Desirable, worthwhile, and important Influenced by family, friends, teachers, coaches, television, and movies Guide your daily decisions

Needs Necessary or required for life Brainstorm examples of needs

Wants Unnecessary but desired May increase the quality of living or make a person happier Brainstorm examples of wants How do values influence wants?

Why Set Goals? Creates a path and provides guidance for your future Helps make the life you want to live a reality Helps with decision making Helps create well-being

SMART Goals S M A R T Specific Measurable Attainable Realistic Time Bound T

I will reduce the amount I owe on my car loan. S = Specific Clearly defined end result Financial goal = state exactly what plan you have for the money involved Lacey’s Example Current Goal SPECIFIC Goal I will reduce my debt. I will reduce the amount I owe on my car loan.

M = Measurable Determine exactly when you will know that the goal has been met Financial goal = state the exact dollar amount Lacey’s Example Current Goal MEASURABLE Goal I will reduce the amount I owe on my car loan. I will reduce the amount I owe on my car loan by $1,000.

I will reduce the amount I owe on my car loan by $1,000. A = Attainable Create a step-by-step plan outlining exactly how the goal can be reached Financial goal = Often determined by a spending plan or budget Lacey’s Example Current Goal ATTAINABLE Goal I will reduce the amount I owe on my car loan by $1,000. I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per month

R = Realistic How do you determine if a goal is unrealistic? Examine the consequences of that goal Opportunity cost - the value of the next best alternative that you will give up as a result of your plan Trade-off - giving up one thing for another Consider the trade-offs and opportunity costs

R = Realistic Lacey’s Example Current Goal REALISTIC Goal I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week. Lacey has determined that paying her car loan is more important than any other use of her money. The opportunity cost of paying her car loan is higher than the alternative of saving that money.

T = Time Bound Specifically state when the goal will be reached Consider whether your goals are short-term or long-term Short-term goal – attained in less than one year Long-term goal – attained in more than one year Financial goal – make sure to consider your long-term financial needs when setting financial goals Lacey’s Example Current Goal TIME BOUND Goal I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week. I will reduce the amount I owe on my car loan by $1,000 in 10 weeks by paying an extra $100 per month.

Education Goals Help individuals prepare for success in the workplace Examples include: Earning an A on an upcoming quiz Attending college Participating in extra-curricular activities Include both short-term and long-term goals Provide guidance and direction Enable individuals to reach financial goals

Goal – “I want to attend college.” SMART Education Goal Goal – “I want to attend college.” SMART goal – Specific – I want to attend a four year college. Measurable – Because I want to attend a four year college, I will earn a B in algebra. Attainable – Because I want to attend a four year college, I will earn a B in algebra this semester. Realistic – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam. Time Bound – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam when I am a junior in high school.

What is a Financial Goal? A goal that guides financial planning Do you have enough money to buy a new pair of shoes? How are you going to pay the membership dues for an extra-curricular activity you want to join? Financial goals help achieve both short-term (under 1 year) and long-term goals (over 1 year) Making decisions is easier when financial goals have been set

Goal – “I want to buy a new iPod.” SMART Financial Goals Goal – “I want to buy a new iPod.” SMART Goal – Specific – I plan to save money for a new iPod. Measurable – I plan to save $100 for a new iPod. Attainable – I plan to save $100 for a new iPod by saving $20 from each babysitting job. Realistic – I plan to save $100 for a new iPod by saving $20 from each babysitting job and putting it into a savings account.