1. Objective:
Explore how spending, saving,
and values impact your finances.

2. Lexie
Alex
Colby
Kanhia CJ
Colin
Jonathon
Marlenne
Jessica G
Lindsey
Haley M
Destinee
McKinleyA
Garrett T
Jaci
Jessica T
Calvin
Timia
Brooke
Billy
Donte
Devon
Julianna
Garrett H
Chasity
Logan
Hayley S
Savanna
Emily
Hannah
McKinley B

3. -Delayed Gratification -Cash Flow -Decision Making -Opportunity Cost
**Define each in your own words.
-Financial planning
-Needs
-Wants
-Values
-Goals
-Delayed Gratification
-Cash Flow
-Decision Making
-Opportunity Cost

4. “Plan your work; work your plan.”
Financial Planning
“Plan your work; work your plan.”
Financial planning is the process of defining goals, developing a plan to achieve them, and putting the plan into action. It includes spending, credit, saving, and investing.

5. Why plan?
**Planning well will enable you to afford nice cars, comfortable homes, fun vacations, and many extras in
life.
*Those who don’t plan
never seem to have enough
money and live paycheck
to paycheck.

6. Elements of a Good Financial Plan
Set Goals
Analyze information
Create a Plan
Implement the Plan
Monitor and Modify
**A good financial plan must distinguish between wants and needs.

7. Needs - -the essentials or basics of life.
Wants - -Items or services that
improve the quality of
**Which of these are wants and needs?
-Water -T.V Home -Bible
-Food -Love -Air Conditioning
-Car Cell phone Education

8. **What makes us disagree on what
are wants and needs?
Values - -
Beliefs and practices in
one’s life that are very
important.
Factors Affecting our Values
-Family -Friends -Teachers
-Church -Work -Mass Media

9. What are your values?
Family/Children
Living a Comfortable Life
Friends
Living a moral life
Education

10. Exit Ticket:
Why is financial planning
important?

11. Objective:
After considering their own values, students will set financial goals that are specific, measurable, attainable, relevant, and time-bound.

12. A statement of something one wants or needs to do.
1. Setting Goals
Goal - -
A statement of something
one wants or needs to do.
One of the most valuable things you can learn is to identify goals clearly. To be effective, goals must be in writing and meaningful to you.

13. Define goals in a “SMART” way
Specific - -exactly what?
Measurable - -how much?
- -how will I know if
I succeeded?
3.Attainable - -can it be done?
4.Relevant)- - is it important to me?
5.Time bound- -exactly when?

14. What’s wrong with this goal?
Beginning next Monday, Oct. 23, I will be starting a diet to lose 60 pounds.
Beginning next Monday, Oct. 23, I will be starting a diet to lose 60 pounds by Christmas.
Beginning next Monday, Oct. 23, I will be starting a diet to lose 30 pounds by the last day of school in May.
Beginning next Monday, Oct. 23, I will be starting a
diet to lose 30 pounds by the last day of school in May through the use of diet and exercise.

15. Beginning Monday, Oct. 15, I will start a diet to lose 30 pounds by the end of school in May. I will eat 1300 calories a day in 6 small meals. I will also exercise for 30 minutes at least 3 times a week.
Specific
Measurable
Attainable
Relevant
Time Bound

16. **Smart Goal Time Lines
Short Term- - up to 1 year
Intermediate Term years.
Long Term – 5 years or longer
**Long term goals will include delayed gratification.
You must be willing to give up something or do without something for awhile before reaping greater rewards.

17. *Keeping in mind your values, wants, and needs, make a “SMART” goal for one of the timelines.
**Which one has a bigger impact
on goals - -needs or wants? Why?

18. What’s missing from this goal?
In order to purchase a new Nissan Maxima next June, I will save $1,000 a month for a good down payment by cutting gas, groceries, entertainment, and household spending in half. This will begin on November 15 and end June 15 when I have saved $8,000.

19. What’s wrong with this SMART goal?
In order to buy gifts for family at Christmas, I will have a fixed amount put electronically into a Christmas Club account beginning every November. I will be able to spend the money beginning the following November.

20. 2. Analyzing Information
**The second step in financial planning is to find our where you stand with finances. See exactly how much money your getting and
exactly how much your saving or spending.
Cash Flow --
Measure of money
received and spent.

21. Income
-includes:
-wages
-allowances
-gifts
-money from selling items
-interest on savings
-child support payments
-Social Security payments

22. 3 Types of Expenses to Consider
1. Fixed Expenses -same each mo.
Ex. House payment,
rent, insurance, phone
2. Variable Expenses -differ each
month
Ex. Food, entertainment
3. Periodic or Occasional Expenses-
have only sometimes
Ex. oil change, sickness
hair cut

23. “P.Y.F.”
-means “Pay Yourself First”
-count your savings as a bill that
must be paid.
-at least 10% of your income
-adds up quickly
-can have it taken out
automatically through
electronic transfer.

24. Staying on Track w/ your Budget
Envelope System
-label envelopes and put money in each.
-run out of money, stop spending in that area.
Tally System
-label columns, keep receipts.
list expenses under the right
column.

27. **In financing your future, there are going to be opportunity costs.
Value of what must be given up
in order to obtain something else.
Ex. In order to save extra money for the
senior trip, I will only eat Mexican once
a week instead of twice.

28. 3. Create a Plan Identify the goal. Establish Criteria Examine Options
**Financial Planning requires
Decision making.
6 Stages of Decision Making
Identify the goal.
Establish Criteria
Examine Options
Weigh Pros and cons
Make a Decision
Evaluate Results

29. 4. Implement the Plan
Guidelines to sticking to a Plan
Write down your goals.
Share goals with others
Only take the amount you need
when going somewhere.
Review your plan.
Anticipate roadblocks

30. 5. Monitor and Modify
*Review plan at regular intervals.
*Review plan when experiencing
significant life changes.
*Celebrate goal achievement!