Transcript Lesson 1 - Financial Responsibility and Decision Making

NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins
Financial Responsibility and
Decision Making:
Where It All Begins
NORTH DAKOTA PERSONAL FINANCE EDUCATION
“Most people don’t plan to fail.
They simply fail to plan!”
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins
Sample Wants and Needs
NEEDS
• Food for breakfast
• Clothes for school
• Transportation to
school or work
• ______________
• ______________
WANTS
• iPOD
• DVD player
• Cell phone
• Hot car
• ______________
• ______________
Delayed Gratification
• 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
• _____________________________________
_____________________________________
Values
• Getting a good education
• Religious faith or beliefs
• Social causes
• Handling money responsibly
• Friendships/people I hang
out with
• ______________________
• ______________________
Goals
• Short-term Goals
– Within three months
• Intermediate-term Goals
– Three months to a year
• Long-term Goals
– More than a year
S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-limited
SMART Goals
for lodging, transportation, meals
Specific…….. “Pay
for a 5-day trip to Washington, D.C.”
through fundraising, $50 from
Measurable… “$300
birthday money, save $25 a week.”
I stick to my plan, I’ll have the
Attainable….. “Ifmoney
when I need it.”
“I still have enough money to live
Realistic……. on while I work toward this goal.”
“I need to have all the money by
Time-limited.. 6 months from now.”
The Five-step
Financial
Planning
Process
Spending
Record
$35.00
$5.00
$6.00
$4.00
$7.00
$15.00
$8.00
$15.00
$55.00
$40.00
$15.00
Age
Wants
Factors That Affect
Decision Making
Needs
What about you?
Family
Time
Money
Values
Habits
Culture
Society
Motivation
Education
Attitudes
Decision-making Process
Identify Your
Goal
Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins
Satellite Decisions
Decision Making and Financial Planning
The Decision-making
Process
Identify Your
Goal
Set Goals
Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
The Financial Planning
Process
Analyze
Information
Create a Plan
Implement
the Plan
Monitor and Modify
the Plan
Creating and
Implementing a Plan
Identify Your
Goal
Establish
Criteria
Decide where to eat
1.
2.
3.
REALITY
RESPONSIBILITY
RESTRAINT
SAVING
SPENDING
SHARING
Ready
Set
Go