1. Exploring Values, Needs & Wants

2. What are Values? Desirable, worthwhile, and important
Influenced by family, friends, teachers, coaches, television, and movies
Guide your daily decisions

3. Needs
Necessary or required for life
Brainstorm examples of needs

4. Wants Unnecessary but desired
May increase the quality of living or make a person happier
Brainstorm examples of wants
How do values influence wants?

5. Why Set Goals? Creates a path and provides guidance for your future
Helps make the life you want to live a reality
Helps with decision making
Helps create well-being

6. SMART Goals S M A R T Specific Measurable Attainable Realistic
Time Bound T

7. I will reduce the amount I owe on my car loan.
S = Specific
Clearly defined end result
Financial goal = state exactly what plan you have for the money involved
Lacey’s Example
Current Goal
SPECIFIC Goal
I will reduce my debt.
I will reduce the amount I owe on my car loan.

8. M = Measurable
Determine exactly when you will know that the goal has been met
Financial goal = state the exact dollar amount
Lacey’s Example
Current Goal
MEASURABLE Goal
I will reduce the amount I owe on my car loan.
I will reduce the amount I owe on my car loan by $1,000.

9. I will reduce the amount I owe on my car loan by $1,000.
A = Attainable
Create a step-by-step plan outlining exactly how the goal can be reached
Financial goal = Often determined by a spending plan or budget
Lacey’s Example
Current Goal
ATTAINABLE Goal
I will reduce the amount I owe on my car loan by $1,000.
I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per month

10. R = Realistic How do you determine if a goal is unrealistic?
Examine the consequences of that goal
Opportunity cost - the value of the next best alternative that you will give up as a result of your plan
Trade-off - giving up one thing for another
Consider the trade-offs and opportunity costs

11. R = Realistic
Lacey’s Example
Current Goal
REALISTIC Goal
I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week.
Lacey has determined that paying her car loan is more important than any other use of her money. The opportunity cost of paying her car loan is higher than the alternative of saving that money.

12. T = Time Bound Specifically state when the goal will be reached
Consider whether your goals are short-term or long-term
Short-term goal – attained in less than one year
Long-term goal – attained in more than one year
Financial goal – make sure to consider your long-term financial needs when setting financial goals
Lacey’s Example
Current Goal
TIME BOUND Goal
I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week.
I will reduce the amount I owe on my car loan by $1,000 in 10 weeks by paying an extra $100 per month.

13. Education Goals Help individuals prepare for success in the workplace
Examples include:
Earning an A on an upcoming quiz
Attending college
Participating in extra-curricular activities
Include both short-term and long-term goals
Provide guidance and direction
Enable individuals to reach financial goals

14. Goal – “I want to attend college.”
SMART Education Goal
Goal – “I want to attend college.”
SMART goal –
Specific – I want to attend a four year college.
Measurable – Because I want to attend a four year college, I will earn a B in algebra.
Attainable – Because I want to attend a four year college, I will earn a B in algebra this semester.
Realistic – 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.
Time Bound – 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 in high school.

15. What is a Financial Goal?
A goal that guides financial planning
Do you have enough money to buy a new pair of shoes?
How are you going to pay the membership dues for an extra-curricular activity you want to join?
Financial goals help achieve both short-term (under 1 year) and long-term goals (over 1 year)
Making decisions is easier when financial goals have been set

16. Goal – “I want to buy a new iPod.”
SMART Financial Goals
Goal – “I want to buy a new iPod.”
SMART Goal –
Specific – I plan to save money for a new iPod.
Measurable – I plan to save $100 for a new iPod.
Attainable – I plan to save $100 for a new iPod by saving $20 from each babysitting job.
Realistic – I plan to save $100 for a new iPod by saving $20 from each babysitting job and putting it into a savings account.