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Exploring Values, Needs & Wants

Exploring Values, Needs & Wants. What are Values?. Desirable, worthwhile, and important Influenced by family, friends, teachers, coaches, television, and movies Guide your daily decisions. Needs. Necessary or required for life Brainstorm examples of needs.

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Exploring Values, Needs & Wants

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  1. Exploring Values, Needs & Wants

  2. What are Values? • Desirable, worthwhile, and important • Influenced by family, friends, teachers, coaches, television, and movies • Guide your daily decisions

  3. Needs • Necessary or required for life • Brainstorm examples of needs

  4. How Much Money Does A Person Need? • Families in under developed countries earn $1.00 to $2.00 a day sometimes. • Could your family live off $1.00 to $2.00 a day? • What do you think families in these countries think theyNEED? • How do values influence needs?

  5. Wants • Unnecessary but desired • May increase the quality of living or make a person happier • Brainstorm examples of wants • How do values influence wants?

  6. Spending Money • How do values influence how people spend money and make financial decisions? • How do needs and wants influence how people spend money and make financial decisions?

  7. Why Set Goals? Creates a path and provides guidance for your future Helps make the life you want to live a reality Helps with decision making Helps create well-being

  8. SMART Goals

  9. S = Specific • Clearly defined end result • Financial goal = state exactly what plan you have for the money involved I will reduce my debt. I will reduce the amount I owe on my car loan.

  10. M = Measurable • Determine exactly when you will know that the goal has been met • Financial goal = state the exact dollar amount I will reduce the amount I owe on my car loan. I will reduce the amount I owe on my car loan by $1,000.

  11. A = Attainable • Create a step-by-step plan outlining exactly how the goal can be reached • Financial goal = Often determined by a spending plan or budget I will reduce the amount I owe on my car loan by $1,000. I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per month

  12. R = Realistic How do you determine if a goal is unrealistic? Examine the consequences of that goal Opportunity cost - the value of the next best alternative that you will give up as a result of your plan Trade-off - giving up one thing for another Consider the trade-offs and opportunity costs

  13. Example What could Lacey do with the $100 besides spend it on her car loan? Her next best option is to save the $100 This is a trade-off Paying off her car loan is more important to Lacey than any other use of her money Determine what the value (opportunity cost) of the trade-off is to her Which decision should Lacey make?

  14. R = Realistic I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week. Lacey has determined that paying her car loan is more important than any other use of her money. The opportunity cost of paying her car loan is higher than the alternative of saving that money.

  15. T = Time Bound • Specifically state when the goal will be reached • Consider whether your goals are short-term or long-term • Short-term goal – attained in less than one year • Long-term goal – attained in more than one year • Financial goal – make sure to consider your long-term financial needs when setting financial goals • I will reduce the amount I owe on my car loan by $1,000 in 10 weeks by paying an extra $100 per month. • I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week.

  16. Education Goals • Help individuals prepare for success in the workplace • Examples include: • Earning an A on an upcoming quiz • Attending college • Participating in extra-curricular activities • Include both short-term and long-term goals • Provide guidance and direction • Enable individuals to reach financial goals

  17. SMART Education Goal Goal – “I want to attend college.” SMART goal – • Specific – I want to attend a four year college. • Measurable – Because I want to attend a four year college, I will earn a B in algebra. • Attainable – Because I want to attend a four year college, I will earn a B in algebra this semester. • Realistic – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam. • Time Bound – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam when I am a junior in high school.

  18. What is a Financial Goal? • A goal that guides financial planning • Do you have enough money to buy a new pair of shoes? • How are you going to pay the membership dues for an extra-curricular activity you want to join? • Financial goals help achieve both short-term and long-term goals • Making decisions is easier when financial goals have been set

  19. SMART Financial Goals Goal – “I want to buy a new iPod.” SMART Goal – • Specific – I plan to save money for a new iPod. • Measurable – I plan to save $100 for a new iPod. • Attainable – I plan to save $100 for a new iPod by saving $20 from each babysitting job. • Realistic – I plan to save $100 for a new iPod by saving $20 from each babysitting job and putting it into a savings account.

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