1. Goal Setting Mr. Stasa – W-E City Schools ©

2. TYPES OF GOALS  Examples of financial goals:  Going to college  Buying a house  Buying a car  Getting married  Having children  Ability to retire  What are some financial goals that most people hope to achieve in their lives? http://www.krmg.com/news/business/chipotle-plans-hire-4000-workers-one-day- sept-9/nnQZf/

3. THE IMPORTANCE OF GOAL WRITING  A study in What They Don’t Teach You at Harvard Business School by Mark McCormack  1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?"  3% had written goals and plans  13% percent had goals, but they were not in writing  84% percent had no specific goals at all

4. AND WHAT ABOUT THE 3%?  Ten years later….the 3% that had written goals and plans were earning, on average, ten times as much as the other 97 percent put together

5. WHAT IS A GOAL?  A goal is anything you want to accomplish  What’s an example of a goal you might have for personal finance class?  I.e. Getting an “A” in Personal Finance class

6. HOW DO I BECOME FINANCIALLY SUCCESSFUL?  People become financially successful by doing two things: 1. Having goals 2. Creating a plan to achieve their goals

7. MAKE A PLAN…  Gabe has wanted an iPhone 5s which will cost him $800 for a 64 GB. His family is willing to help by giving him $50. Gabe has $200 in savings.  What is a step-by-step plan that Gabe can follow to raise the rest of the cost?  Ask yourself the following questions… Achieve This!

8. FINANCIAL PLANNING  What is financial planning?  Financial planning is preparing to spend, save, and invest your income.  70-20-10 Rule:  Spend 70% of your income  Save 20% of your income  Invest 10% of your income

9. TYPES OF GOALS  Short-term goals are to be achieved in less than one year.  Intermediate goals are to be achieved in two to five years.  Long-term goals take more than five years to achieve.

10. EXAMPLES  What’s an example of a short-term goal?  What’s an example of an intermediate goal?  What’s an example of a long-term goal?

11. WHAT TYPE OF GOAL IS THIS?  Tanner and his five friends are hoping to go to Cancun this spring for spring break. He knows that each person will need to save at least $1,000 for a flight, hotel, and spending.

12. WHAT TYPE OF GOAL IS THIS?  Jose’s been wanting to get into The Ohio State University since he was in fifth grade. He just began high school this week as a freshman and knows that his grades are what will make or break his opportunity to get into college. Jose’s hoping to maintain at least a 3.5 GPA average all through high school.

13. WHAT TYPE OF GOAL IS THIS?  Brady is a junior in high school beginning to plan out his future after high school. Brady plans to attend The Ohio State University to obtain his bachelor’s degree in business administration. Upon obtaining his bachelor’s degree Brady plans to immediately begin his master’s degree in training and development. His master’s will take a full year as long as he is a full-time student. Once Brady completes his master’s degree he will officially be done with college.

14. GROUP CONSENSUS FORUM…  1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?"  3% had written goals and plans  13% percent had goals, but they were not in writing  84% percent had no specific goals at all  In spite of such proof of success, most people don't have clear, measurable, time-bounded goals that they work toward.  Brian Tracy says there are four reasons why people don't set goals:  What are FOUR reasons that you can think of why most people don’t set goals and make a plan to accomplish them?

15. PERSONAL AND FINANCIAL  What are examples of personal goals that a typical teenager may want to achieve now or in their lifetime?  What are examples of financial goals that a typical teenager may want to achieve now or in their lifetime?

16. GOALS PART #2

17.  A need is something you must have to survive.  A want is something you would like to have, but could survive without. Needs & Wants

18.  What are examples of needs?  What are examples of wants? What are Examples of Needs & Wants?

19. YOU DECIDE!  Car  Nike Shoes  Computer  Food  Abercrombie shirt  Cell Phone

20. S.M.A.R.T. GOALS  S pecific  M easurable  A ttainable  R ealistic  T ime Bound https://www.youtube.com/watch?v=55vkNU_p2iA

21. S PECIFIC  State exactly WHAT must be accomplished.  BAD EXAMPLE: I want to set a world record on swimming a long distance.  GOOD EXAMPLE: I will swim from Havana, Cuba to Key West, Florida non-stop without the assistance of a shark cage, but with the assistance of a jellyfish mask, body suit, and gloves at the age of 64.

22. M EASURABLE  Write the exact outcome or dollar amount.  BAD EXAMPLE: I will set a world record by swimming a very long distance  GOOD EXAMPLE: I plan to swim 110 miles from Havana, Cuba to Key West, Florida within 4 to 5 days at the age of 64.

23. A TTAINABLE  Explain exactly HOW the goal will be reached.  BAD EXAMPLE: I’ll be able to swim a very long distance if I practice.  GOOD EXAMPLE: With the extreme training, determination, and with the assistance of a 35-person team, a jellyfish mask, body suit, and gloves, I will swim from Havana, Cuba to Key West, Florida

24. R EALISTIC  Decide if your goal is a real possibility for you to achieve.  BAD EXAMPLE: I know how to swim, therefore, I will be able to swim from Cuba to Florida.  GOOD EXAMPLE: I have the determination, the support, the vision, the practice, and endurance to swim 110 miles from Cuba to Florida at the age of 64. Do you have the WILL and the DRIVE to get it done?

25. T IME BOUND  Specifically state when the goal will be reached.  BAD EXAMPLE: I will swim from Havana, Cuba to Key West, Florida during my lifetime.  GOOD EXAMPLE: At the age of 64, I will swim from Havana, Cuba to Key West, Florida beginning on August 31, 2013 and will reach my destination within 4 to 5 days.

26. 4 SMART QUESTIONS TO BE ANSWERED WITHIN EACH SMART GOAL 1. What: What do I want to accomplish? 2. How: How will I accomplish my goal? 3. When: Establish a time frame. 4. Why: Purpose or benefits of accomplishing the goal.  “I want to save $2,400 for a down payment on a new car by placing $200 into my savings account each month for the next 12 months so that I no longer have to spend money on car current repairs.”

27. WHAT’S MISSING?  Troy is going to save $17,000 for his first year of college. He will need to achieve his goal of $17,000 by August of 2018 He plans to major in computer graphics design so that he can eventually work at TIME Magazine. Scenario #1 HOW?

28. WHAT’S MISSING?  Melissa wants to purchase a house by the time she’s 30. She is going to invest her savings buy purchasing 180 shares of Lincoln Electric at $34 per share. Melissa plans to purchase these shares today In hopes they will double, if not triple, by age 30. Scenario #2 WHY?

29. WHAT’S MISSING?  Kate just got her temps and wants to purchase a car for under $6,000 using her savings. She plans to look on Craigslist and local dealers for a used but well- maintained car. If she buys a car she will no longer have to ask family and friends to take her places, and she can get to work on her own. Scenario #1 When?

30. GOALS PART #3

31.  An opportunity cost is the option you give up to get something else.  Chuck decides to spend $200 towards a new iPhone rather than save $200 towards college.  What is Chuck’s opportunity cost?  The amount of money saved towards college. Opportunity Costs

32.  Megan won two tickets to a Lady GaGa concert tonight, but she knows there’s a big Chemistry test Friday morning during 1 st period. Megan must choose whether to go to the concert, study for the test, or somehow do both.  If Megan chooses to go to the concert, what is her opportunity cost?  Megan is giving up a decent grade she could get on her test had she chose to stay home and studied. Opportunity Costs

33.  Darleen doesn’t know whether to go to Chipotle after school with friends or if she should fill out applications for a part-time job. Darleen chooses to fill out job applications instead.  What is Darleen’s opportunity cost?  The food and fun she could have at Chipotle with her friends. Opportunity Costs

34. MAJOR DECISIONS  Major decisions have long-term effects that should be thought through carefully  What are some major decisions you have made in your life?  Whether to get your drivers license  Whether to go to college  Buying a new car  Getting a job

35.  Gloria has had the goal of going to homecoming since last fall. She just accepted Sean’s invitation to go to homecoming with him. Gloria just realized she now has expenses coming up in the next several weeks to prepare for. She must buy a dress and pay to get her hair done. Sean has agreed to pay for her ticket and dinner. Gloria only has $20 in her savings account. How will she pay for her dress and hair appointment? Think of a plan that Gloria can use. Lead-in…

37. #1 IDENTIFY THE PROBLEM  In the form of a question.  i.e. Should I go away to college, or go to a local college where I can live at home? Step #1

38. #2 LIST THE PROS AND CONS  Pros:  Meet new friends  Learn responsibility  Live on my own  Cons  Spend more money and save less  Do my own laundry Step #2

39. #3 DECIDE!  I’m going to go away to college  I may need to save money and get a job, but I’ll enjoy the time with my friends. Step #3

40. #4 EVALUATE RESULTS AFTERWARDS  By going away to college I learned how to pay my own bills, make my own meals or at least buy them, how to make decisions on my own, made a lot of new friends, and have learned how to live on my own. Step #4