G1 © Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Financial Decision Making “Take Charge of Your Finances”

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Personal Finance  What is Personal Finance?  Personal Financial Planning – arranging to spend, save and invest money to live comfortably, have financial security, and achieve goals.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Things that Impact Our financial Decisions  What causes us to spend money? Things we need? Things we want? Impulse?  Many things impact our financial decisions. Those ‘things’ include our needs, our wants, things we value, and our goals.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Things that Impact Our financial Decisions  Need – Something necessary for survival. Basic categories – Food, Clothing, Shelter, and Water.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Things that Impact Our financial Decisions  Wants – Something you desire or wish to have. They add pleasure and comfort to our lives. Wants are unlimited and the list is never-ending.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Do I Really Need This? You Decide !!  Car Need – If public transportation is not available, then a car is a need. Want – Type of car, make, model, manufacturer, options are a want

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Things that Impact Our financial Decisions  Examples of things we value: Technology Family Friends Education Shopping Pets Money Health Happiness Sports Values – the beliefs and principles you consider correct and desirable.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Values Con’t.  Many things can influence your values – friends, family, religion, teachers, media.  How do values influence your financial decisions?  Value Health – may purchase a gym membership  Value Friendships – spend money on movies, dinners  Value Knowledge – attend college, student loans  Value Independence – own a home, rent an apartment  Value Status – purchase quality items, high-end brand names.  Value Wealth – save money, invest wisely.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Things that Impact Our financial Decisions  Goal – the things you want to accomplish.  Short-Term Goals – takes one year or less to achieve.  Intermediate Goals – takes 2-5 years to achieve.  Long-Term Goals – takes more than 5 years to achieve.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals 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  Specific -State exactly what is to be done  Measurable -Include how the goal can be measured  Attainable -Determine steps to reach the goal  Realistic - Do not set goals for something unrealistic  Time Bound- State when the goal will be met

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Why set SMART goals?  Provide Guidance and Direction  Allow a person to focus on important things.  Help people keep the end result in mind.  Prepare us for success in the workplace.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals 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 Goal Example  Goal – “I want to get good grades.”  To turn it into a SMART goal:  Specific – I plan to raise my grade in Algebra I.  Measurable – I plan to raise my grade from a C to a B in Algebra I.  Attainable – I plan to stay after school on Monday’s for math tutoring.  Realistic – Is this possible?  Time Bound – I plan to achieve this at the end of the 1st Quarter.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals 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 Goal Example  Finished SMART Goal: I plan to raise my Algebra I grade from a C to a B by the end of the third quarter by attending tutoring once a week after school.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals 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 Goal Example  Goal – “I want to buy a new car.”  To turn it into a SMART goal:  Specific – I plan to save for a down payment on a car.  Measurable – I plan to save $5,000 for a down payment on a new car.  Attainable – I plan to save $200 from every paycheck.  Realistic – Is this possible?  Time Bound – I plan to save $200 from the next 25 paychecks or the next year.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals 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 Goal Example  Finished SMART Goal: I plan to save $5000 for a down payment on a new car by saving $200 per paycheck for the next year.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Main Categories of Decision Making  Routine – made on a daily basis and does not require a lot of time to think through.  Major – have long-term effects on a person’s life and should be made very carefully.  Financial – a major decision that impacts an individual or family’s well being.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Decision Making Process  Step 1: Identify the problem. Examples: Which college to choose, Which car to buy?  Step 2: List Alternatives What are the pros & cons of each possible choice?  Step 3: Decide Make the best choice after thinking about all the consequences.  Step 4: Evaluate the Results Did you make the right decision? Evaluating will help in making better decisions in the future

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Factors that Influence Decision Making  Age  Budget  Peers  Time  Family Opinions  Habits  Risks & Consequences  Values

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Decision Making Strategies  Spontaneous - decide suddenly, without thought  Avoidance - by avoiding something/someone  Agonizing - difficulty deciding.  Desire – based on something you want.  Procrastination – waiting until the last minute.  Compliance – following rules  Security – feels safe  Intention – intended to do/purchase something.