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

2. Why do we set personal goals? Needs-The ingredients for making or maintaining physical life.  Food and water  Shelter  Clothing Wants-Something desired but not necessity  College education  High standard of living  Nice car  Laptop  iPod

3. How can goal-setting help us achieve successful financial management?  Career choices and Incomes  Appropriate education attained  Budgeting  Savings  Financial Investments  Effective Consumer Skills Goals provide a sense of direction to achieve financial success.

4. 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?

5. Economic Way of Thinking Vocabulary!  Benefits-something that is favorable to the decision-maker  Cost-sacrifice, loss or penalty to acquire, produce, accomplish or maintain anything  Alternatives-options to choose from  Choice- the best or most preferable alternative  Self-Interest- consideration for one’s own aims or advantages  Consequences-what follows once choice is made  Opportunity Cost -value of the next best alternative when you make a choice

6. Decision-making Process when Thinking Economically 1.Problem-Define the problem 2.Alternatives-List alternative solutions and the costs and benefits of each 3.Criteria-Develop a list of criteria that will be needed solve the problem 4.Evaluate-Evaluate each alternative based on the criteria 5.Decide-Choose the best solution based on your evaluation of each alternative

7. How do people make informed decisions about their future careers?

8. 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.  Values-ideals or principles which are important to you in which you base decisions on  Resources-Things or People that can be used for help and support.  Parents  Educators  Counselors  Personal contacts  Education  Assessments  Job placement services  Internet

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

10. What is the relationship between... Education & Potential Income Education & Employability

11. Sources of Income  Career  Wages/Salary  Commission/bonuses (personal productivity)  Employee benefits  Entrepreneurial ventures  Investments-Capital gains & Dividends  Savings Interest  Retirement distributions  Inheritance  Social Security  Worker’s Compensation

12. What factors in the economy affect personal financial decisions?  Current Business Cycle  Occupation Trends  International competition  Outsourcing  Financial Markets  Others?

13. Career Self-Assessments   Click on Internet Explorer   Go to www.kudernavigator.com   Register as a new user   Complete only the * boxes   Enter Activation Code   N3885455EAX   Check the Accept terms box   Begin assessment   Career Interests Assessment