1. Personal Finance and Resource Management Objective 2.01

2. Needs VS Wants Needs are what you must have to survive. Something you truly can’t live without. Things like air, water, food, clothing, shelter are needs. Wants are what you would like to have but do not need in order to survive. Something you’d like to have but will be ok without. Things like cell phones, video games, pets and iPods are wants—not needed for survival but nice to have. Opportunity cost is the “cost” we pay when we give up something to get something else.

3. Activity: Needs VS Wants On sticky notes write needs and wants that YOU have spent your money or your parents money on to buy these things. One need/want per sticky note.

4. Goals and Values Goals are what you want to achieve in life. Goals help by providing direction in life. Short-term goals are goals that can be achieved in a short amount of time. It can be a few days, weeks, or months. Long-term goals are goals that can be achieved in a longer amount of time. It can be months, years, or even an entire lifetime. Values are strong beliefs, feelings, or ideas about what you feel is important.

5. Set A Goal Think of something you really, really, really want to purchase…something that is NOT a need. Write a goal that will help you save enough money to make this purchase. Make sure your goal is measureable! Ex: “I will save ____ dollars every ____ for 2 years in order to purchase a new ____.

6. Teens as Smart Consumers Consumers are people who buy goods and services. Consumers must decide what to buy, where to buy, and when to buy.

7. Buying

8. Buying Decisions Sellers use different forms of media to advertise their products. Advertisement is a message that persuades consumers to buy a product or services. Types of Advertisement – Informative Ads-send the message that an item is a good buy for the price or because of its quality – Image Ads-connect a product or service to a lifestyle that consumers would like to have and often use celebrities to endorse a product – Advertising Techniques-slogans, endorsements, cartoon characters, emotional appeals.

9. Advertising Tricks

10. Advertising…

11. Trends and Impulse Buying A trend is a temporary fashion or product. Impulse buying is when someone makes a sudden decision to buy something you did not plan to purchase.

12. Job/Career/Income A job is work you do for money. A career is something you build by going to school and working jobs related to the career you want. An entrepreneur is a person who starts his or her own business.

13. Income and Your Career Your income is the money you earn and receive regularly. Ways you might earn money as a teenager: – Allowance – Babysitting – Odd jobs for neighbors – Gifts

14. Careers Activity 1.Write 3 careers you are interested in pursuing in the future on three different sticky notes. When complete, post your careers on the write board. 2.Group according to your career choices and discus what types of education, jobs, interests, and talents you may need in order to pursue your career dreams. Complete Career Poster.

15. Spending and Saving Money Expense is the cost of goods and services. A budget is a spending plan people make in order to make sure there is enough income to cover all expenses. A balanced budget is a budget with sufficient income to cover all expenses.

16. Making Decisions A decision is a choice you make about what to do or say in a given situation. The Decision Making Process is a set of six basic steps to help you make decisions, solve problems, or reach goals. – Step 1: Define the problem – Step 2: Examine the alternatives – Step 3:Consider how choices relate to goals – Step 4:Identify acceptable choices – Step 5: Decide on one choice – Step 6: Evaluate results

17. Decision Making Problem: Your family’s car is having trouble and it’s time to purchase a new car but there is NO extra money in the budget. What will you do? Monthly Expenses (Monthly pay: $2500) Mortgage/Rent: $700 Gas: $150 Electricity/Gas: $150 Water/Trash: $30 Phone/internet/cable: $100 Cell phone: $50 Groceries: $200 Medical: $20 Vacation Savings: $100 Out to Eat: $100 Clothing: $200 House Cleaning: $150 College Loan: $150 Credit Cards: $200 Insurance: $75 Car payment: none Where can they save money?? How much money do they have to spend on a car? What kind of car would you recommend? What monthly/daily sacrifices may have to be made?

18. BE A SMART CONSUMER!!! SAVE!!! Think about and plan for your future!!!