Unit 1B - Your Financial Plan: Where It All Begins

1. Unit 1B - Your Financial Plan: Where It All Begins

2. “Most people don’t plan to fail…They simply fail to plan!” 1-A

3. The Five-Step Financial Planning Process 1-B

4. NEEDS Food for breakfast Clothes for school Transportation to school or work ______________ ______________ WANTS An iPOD DVD Players Cell Phone Hot Car ______________ ______________ Sample Wants and Needs 1-C

5. Getting a good education Religious faith or beliefs Social causes Handling money responsibly Friendships / The people I hang out with ____________________________ ____________________________ Values 1-D

6. Goals • You can’t hit a target you cannot see. • The basic rules: • Goals must be written down • Realistic plans must be made for their accomplishment • Deadlines must be set and honored

7. Goals • Goal setting is an art that makes everything else possible. • Most successful people are obsessive goal setters. • Once you have goals set, you have a pattern for opportunity

8. Goals • Successful people have a perfect balance between thought and action • You must think before you act but you have to act • Don’t be afraid to take a risk

9. Goals • Failure is inevitable • It just should not be linked with giving up • How many chances do you give a baby to walk before you stop them from trying?

10. Goals • Problem with achieving goals is that we fall apart once we achieve our goal example: dieting • Rewards of goal setting come not from earning $1 million but in having learned the lessons about what it takes to become a millionaire

11. SHORT-TERM GOALS Within three months INTERMEDIATE-TERM GOALS Three months to a year LONG-TERM GOALS More than a year Term Goals 1-E

12. Saving money over time to make a major purchase. Waiting to buy a new product until the price goes down. Waiting to see the latest movie until the crowds get smaller and the lines shorter. ____________________________________________________________________ Delayed Gratification 1-F

13. S-M-A-R-T GOAL CRITERIA Specific Measurable Attainable Realistic Time-Limited 1-G

14. SMART Goals Specific…….. “Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C.” Measurable… “$300 through fundraising, $50 from birthday money, save $25 a week.” Attainable….. “If I stick to my plan, I’ll have the money when I need it.” Realistic……. “I still have enough money to live on while I work toward this goal.” Time-Limited.. “I need to have all the money by 6 months from now.” 1-H

15. Spending Record $6.00 $35.00 $4.00 $7.00 $5.00 $8.00 $15.00 $15.00 $55.00 $40.00 $15.00 1-I

16. Age Factors That AffectDecision Making Needs Wants What about you? Family Culture Time Society Motivation Money Values Education Habits Attitudes 1-J

17. Decision-Making Process Identify Your Goal Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results 1-K

18. NEFE High School Financial Planning Program Set Goals Identify Your Goal Analyze Information Establish Criteria Create a Plan Weigh Pros and Cons Implement the Plan Make a Decision Monitor & Modify the Plan Evaluate Results Unit One - Your Financial Plan: Where It All begins The Decision- Making Process Decision Making and Financial Planning The Financial Planning Process 1-L

19. Know What You Want Identify Your Goal Decide where to eat Establish Criteria 1. 2. 3. 1-M

20. REALITY RESPONSIBILITY RESTRAINT 1-N

21. SAVING SPENDING SHARING 1-O

22. Unit 1: Your Financial Plan: Where it All Begins