1. VALUES, NEEDS, WANTS, AND GOAL SETTING ESSENTIALS
Financial Literacy
VALUES, NEEDS, WANTS, AND GOAL SETTING ESSENTIALS

2. WHAT IS A VALUE? What are examples of values?
A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual
What are examples of values?
Financial security
Family
Helping others
Education
A successful and/or satisfying career
Religious commitment
Honesty
Good health

3. VALUES Are your values the same as the person sitting next to you?
What influences a person’s values?
Family
Life Experiences
Friends
Are your values the same as the person sitting next to you?
Law
Teachers
Religious affiliations
Media
Work/
Career

4. Values, needs, wants, and goals influence a person’s daily decisions
Values guide a person’s needs, wants, and goals
Values
Wants
Goals
Needs
Values, needs, wants, and goals influence a person’s daily decisions
Decisions affect an individual’s financial situation because we make financial decisions based on what we feel is important (our values), or perceive as a want or a need

5. What would the world be like if everyone had the same values?
IMAGINE
What would the world be like if everyone had the same values?

6. NEEDS vs. WANTS
A need is something thought to be a necessity or essential items required for life
Examples of needs:
Food
Water
Shelter
A want is something unnecessary but desired or items which increase the quality of living
Examples of wants:
Car stereo
MP3 player
Designer clothes

7. Everyone has different interpretations of needs and wants.
NEED OR WANT? YOU DECIDE!
Clothing
Going to the movies
Going out to eat
A place to live
A car/truck
A computer
Owning an MP3 player
Cell phone
Owning a vacation home
Food
Everyone has different interpretations of needs and wants.
This is based on…
their personal values!

8. Identifying goals makes decision making easier
WHAT IS A GOAL?
A goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future
Identifying goals makes decision making easier

9. HOW DO VALUES, NEEDS, WANTS AND GOALS RELATE TO FINANCIAL DECISIONS?

10. TYPES OF GOALS
Goals
Financial goals are specific objectives to be accomplished through financial planning
Education goals enable individuals to prepare for future success in the workplace
Short-term goals can be accomplished in less than one year
Long-term goals are specified as taking more than one year to accomplish

11. SMART GOALS Financial and education goals should be 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

12. SMART FINANCIAL GOAL Goal – I want to buy a new car SMART goal –
Specific – I plan to save for a down payment on a new car
Measurable – I plan to save $5,000 for a down payment on a new car
Attainable – I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck
Realistic – It is realistic to save $200 from each paycheck for a down payment on a car because I usually waste the money on unnecessary items instead of saving it
Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

13. Attainable –How are you going to reach the goal?
WHAT IS MISSING?
Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals
Financial Goal #1
I plan to save $5,000 for college living expenses in four years.
Attainable –How are you going to reach the goal?

14. Measurable –What is the total you want to save?
WHAT IS MISSING?
Financial Goal #2
I plan to save for a new computer by saving $150 each month for one year.
Measurable –What is the total you want to save?

15. Specific –What are you saving the money for?
WHAT IS MISSING?
Financial Goal #3
I plan to save $2,500 by saving $105 each month for 2 years.
Specific –What are you saving the money for?

16. Time Bound – When will the goal be reached?
WHAT IS MISSING?
Financial Goal #4
I plan to save $1,500 to buy a used car by saving $75 from each paycheck.
Time Bound – When will the goal be reached?

17. Realistic – It is not realistic to save your whole paycheck
WHAT IS MISSING?
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.
Realistic – It is not realistic to save your whole paycheck

18. WHY IS IMPORTANT TO WRITE SMART GOALS?
Practice writing SMART goals!

19. SUMMARY
A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual
A need is something thought to be a necessity or essential item required for life. Examples include food, water, and shelter
A want is something unnecessary but desired or items which increase the quality of living
A goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish
Values
Wants
Goals
Needs

20. Values guide a person’s needs, wants and goals
SUMMARY
Values guide a person’s needs, wants and goals
This influences a person’s daily decisions, which may affect their financial situation because we spend money on things we value
Goals should be written down as SMART goals
Specific, measurable, attainable, realistic, and time bound