G1 Setting Financial Goals “Take Charge of Your Finances” Advanced Level

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Financial Planning Financial planning- A tool used to achieve financial success based upon the development and implementation of financial goals

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Goals Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Financial goals – specific objectives to be accomplished through financial planning Education goals - enable individuals to prepare for future success in the workplace

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Short-term and Long-term Goals Goal Underline events in your letter that can be achieved with a short- term goal Put parentheses around events in your letter that can be achieved with a long-term goal Short-term goals- specified as less than one year Long-term goals - specified as more than one year

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 The Importance of Goal Writing  A study in What They Don’t Teach You at Harvard Business School by Mark McCormack  Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?" 3% had written goals and plans 13% percent had goals, but they were not in writing 84% percent had no specific goals at all

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 And what about that 3%  Ten years later….the 3% that had written goals and plans were earning, on average, ten times as much as the other 97 percent put together Why is goal setting important?

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Goals SpecificMeasurableAttainableRealisticTime Bound State exactly what is to be done Include how the goal can be measured Determine steps to reach the goal Do not set goals for something unrealistic State when the goal will be met

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Financial Goals State exactly what is to be done with the money involved Specific Write the exact dollar amount the goal is for Measurable Determine how it can be reached (often determined by a budget) Attainable Do not set goals for something unattainable or out of reach Realistic Specifically state when the goal needs to be reached Time Bound

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Financial Goal GoalSpecificMeasurableAttainableRealisticTime Bound I plan to save for a down payment on a new car I plan to save $5,000 for a down payment on a new car I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck It is realistic to save $200 from each paycheck because I usually waste the money on unnecessary items instead of saving it I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years I want to buy a new car

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Education Goals State exactly what is to be done with the education aspect involved S pecific Write the exact grade or class that the goal is for M easurable Determine how it can be reached, which is often determined by academic work A ttainable Do not set goal for something unattainable or out of reach R ealistic Specifically state when the goal needs to be reached T ime Bound

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Education Goal GoalSpecificMeasurableAttainableRealisticTime Bound I want to attend a four year college Because I want to attend a four year college, I will earn a B in algebra Because I want to attend a four year college, I will earn a B in algebra this semester 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 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 I want to attend college

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals  Financial Goal #1 I plan to save $5,000 for college living expenses in four years.

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal #1 Answer: Attainable

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals  Financial Goal #2 I plan to save for a new computer by saving $150 each month for one year.

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal #2 Answer: Measurable

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals  Financial Goal #3 I plan to save $2,500 by saving $105 each month for 2 years.

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 3 Answer: Specific

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals  Financial Goal #4 I plan to save $1,500 to buy a used car by saving $75 from each paycheck.

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 4 Answer: Time Bound

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals  Financial Goal #5 I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months.

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 5 Answer: Realistic

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Summary What is a goal? Why is goal setting important? What are the elements of a SMART goal?

© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Practice Writing Smart Goals Get into groups of 2-3 Write one SMART education goal and one SMART financial goal for yourself Share your goals with your group and have your group provide constructive feedback to ensure goals have all of the elements of well written goals Based upon feedback from your group, edit your goals