Setting Financial Goals

1. Setting Financial Goals “Take Charge of Your Finances” 1.17.3

2. Shake Out My Future Activity • Complete the Shake Out My Future worksheet 1.17.3.A1 • For each category, roll the die to determine what your final outcome would be • Roll the die and cross out the number that is rolled • For example: In the housing category if you roll a 2 you would cross out the word “Mansion” • Continue until you have rolled the die enough times to have only one option remaining. This will be your final outcome for that category • Record your final outcome in the box next to the category and answer the reflection question

3. Letter • Write a letter to yourself about what you envision your life will be like in five years. • Examples of items you may write about include: • Education • Career • Family • Money

4. Goals

5. Goals • Short-term goals – specified as less than one year • I plan to raise my English grade from a C+ to a B by the end of this academic year by asking my older brother to peer review my research paper prior to turning it in. • Underline events in your letter that can be achieved with a short-term goal. • Long-term goals – specified as more than one year • By the end of the next academic year I would like to purchase my first car by saving $50 per month from my part time job. • Put parentheses around events that can be achieved with a long-term goal.

6. 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

7. And what about that 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.

8. SMART Goals

9. 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

10. SMART Education Goals

11. 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

12. SMART Financial Goals

13. SMART Financial Goal • Goal – I want to buy a new car • SMART goal – • Specific – I plan to save for a down payment on a new car • Measurable – I plan to save $5,000 for a down payment on a new car • Attainable – I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck • Realistic – It is realistic to save $200 from each paycheck for a down payment on a car because I usually waste the money on unnecessary items instead of saving it • TimeBound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

14. What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #1 • I plan to save $5,000 for college living expenses in four years.

15. What is Missing? • Financial Goal #1 Answer: Attainable

16. What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #2 • I plan to save for a new computer by saving $150 each month for one year.

17. What is Missing? • Financial Goal #2 Answer: Measurable

18. What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #3 • I plan to save $2,500 by saving $105 each month for 2 years.

19. What is Missing? • Financial Goal # 3 Answer: Specific

20. What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #4 • I plan to save $1,500 to buy a used car by saving $75 from each paycheck

21. What is Missing? • Financial Goal # 4 Answer: Time Bound

22. What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #5 • I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months

23. What is Missing? • Financial Goal # 5 Answer: Realistic

24. Conclusion • Review the following: • Goals • Financial goals • Short-Term goals • Long-Term goals • SMART goals • Questions?

25. Practice Writing Smart Goals • Get into groups of 2-3 to practice writing a group SMART education and financial goal on your Goal Setting note taking guide 1.17.3.L1. • Write one SMART education goal and one SMART financial goal for yourself on your Goal Setting note taking guide 1.17.3.L1. • Share your goals with your group. Have your group provide constructive feedback to ensure goals have all of the elements of well written goals. • Based upon feedback from your group, edit your goals.