How do my personal financial decisions impact my success? Unit One

Why do we set personal goals? Needs-________________ ______________________ Food and water Shelter Clothing Wants-________________ ______________________ College education High standard of living Nice car Laptop iPod

How can goal-setting help us achieve successful financial management? _____________________________ Appropriate education attained _____________________________ Savings Financial Investments Effective Consumer Skills Goals provide a sense of direction to achieve financial success.

Economic Way of Thinking People have alternatives-options. Each alternative has Benefits and Costs. We respond to incentives that affect our self-interest in predictable ways. Our choices have consequences positive or negative. How can this reasoning be used to improve money management and standard of living?

Economic Way of Thinking Vocabulary! ___________-something that is favorable to the decision-maker _________-sacrifice, loss or penalty to acquire, produce, accomplish or maintain anything ___________- options to choose from ___________- the best or most preferable alternative ___________- consideration for one’s own aims or advantages ___________- what follows once choice is made ___________- value of the next best alternative when you make a choice

Decision-making Process when Thinking Economically ___________-Define the problem ___________-List alternative solutions ___________- Develop a list of criteria that will be needed solve the problem ___________- Evaluate each alternative based on the criteria (costs and benefits ___________- choose the best solution based on your evaluation of each alternative

How do people make informed decisions about their future careers?

Resources in Career Decision-Making Identify Careers through Self-Assessment Surveys Interest Aptitudes Work Values Identify Lifestyle-the way you choose to live your life based on your values. ______________ -ideals or principles which are important to you in which you base decisions on ___________- Things or People that can be used for help and support. Parents Educators Counselors Personal contacts Education Assessments Job placement centers Internet

What knowledge and skills do I need to reach my financial goals? _________________- the abilities and skills of any individual, acquired through investment in education and training, that enhance potential income earning Develop human capital through: ____________________- elementary, secondary & post-secondary schooling ____________________- experiences outside school ____________________- a measure of one’s output per hour worked Entrepreneur-one that take the risk to start a business; work for self;

What is the relationship between education and employability? education and income? BLS.Gov

Sources of Income Career Entrepreneurial ventures Wages/Salary Commission/bonuses (personal productivity) Employee benefits Entrepreneurial ventures ____________________- Capital gains & Dividends ____________________ Retirement distributions Inheritance Social Security

What factors in the economy affect personal financial decisions? Current Business Cycle ____________________ International competition Outsourcing ___________________ Others?

Career Self-Assessments Click on Internet Explorer Go to www.kudernavigator.com Register as a new user Complete only the * boxes Enter Activation Code N3678647QEQ Check the Accept terms box Begin assessment Career Interests Assessment