Financial Responsibility and Decision Making: Where It All Begins

1. Financial Responsibility and Decision Making: Where It All Begins NORTH DAKOTA PERSONAL FINANCE EDUCATION

2. “Most people don’t plan to fail. They simply fail to plan!”

3. The Financial Planning Process

4. NEEDS Food for breakfast Clothes for school Transportation to school or work ______________ ______________ WANTS iPOD DVD player Cell phone Hot car ______________ ______________ Sample Wants and Needs

5. Saving money through 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

6. Getting a good education Religious faith or beliefs Social causes Handling money responsibly Friendships/people I hang out with ______________________ ______________________ Values

7. Short-term Goals Within three months Intermediate-term Goals Three months to a year Long-term Goals More than a year Goals

8. S-M-A-R-TGOAL CRITERIA Specific Measurable Attainable Realistic Time-limited

9. 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.”

10. The Five-step Financial Planning Process

11. Spending Record $35.00 $6.00 $4.00 $7.00 $5.00 $8.00 $15.00 $15.00 $55.00 $40.00 $15.00

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

13. Decision-making Process Identify Your Goal Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results

14. Satellite Decisions

15. Set Goals Identify Your Goal Analyze Information Establish Criteria Create a Plan Weigh Pros and Cons Implement the Plan Make a Decision Monitor and Modify the Plan Evaluate Results The Decision-making Process Decision Making and Financial Planning The Financial Planning Process

16. Creating and Implementing a Plan Identify Your Goal Decide where to eat Establish Criteria 1. 2. 3.

17. REALITY RESPONSIBILITY RESTRAINT

18. SAVING SPENDING SHARING

19. ReadySetGo ReadySetGo