PLAN FOR LIFE

1.1 THE IMPORTANCE OF PLANNING 1.2 DEVELOP A CAREER PLAN 1.3 MAKE A BUDGET 1.4 MANAGE YOUR MONEY

INDUSTRY INDICATORS (find 4)

British Petroleum: p 3 1. Gas & petroleum products 2. Convenience stores 3. Fast food stores 4. Solar power

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Lesson 1.1

The Importance of Planning

Goals

Explain the process of planning.

Discuss planning for your life.

Describe a balance between planning and impulsiveness.

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WHAT IS PLANNING?

What is a plan?

– a method or process worked out in advance that leads to the achievement of some goal Rule #1 – If you want to enjoy a successful and rewarding life, you have to plan for it.

“If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much.” Jim Rohn http://www.motivational-inspirational-corner.com/getquote.html?startrow=11&categoryid=144 19 4

THE PLANNING PROCESS

Step 1: Set a goal – A goal , which is usually longer term in nature, will require planning, patience and discipline to achieve.

Step 2: Acquire knowledge Step 3: Compare Alternatives Step 4: Choose a Strategy Step 5: Make a Commitment Step 6: Keep Flexible Discuss: Example here 19 5

PLANNING FOR YOUR LIFE

A master plan is needed for all the phases of our lives. These phases include: $ $ $ $ $ Career Self Lifestyle Relationships Finances 19 7

PLANNING AND BEING IMPULSIVE

A balance between planning and being impulsive is important.

In the short run, planning involves sacrifice; in the long run, it gives you more options.

The Dilly Sextuplets & Self-Control 19 8

AVOID THE EARN AND SPEND TREADMILL

The average American is failing to manage his or her money prudently.

ADVERTISING MESSAGES

It takes strength of character and fiscal discipline to refrain from spending money on highly advertised products.

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DREAMS AND PLANS

Dreams provide the raw material to translate wishes into long term goals.

Planning is required to achieve long term goals.

– Dream – Plan 19 10

DIRECTION FOR YOUR LIFE

Dreams provide pathways to other opportunities.

Planning involves translating your goals and dreams into step-by-step strategies.

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Lesson 1.2

Develop a Career Plan

Goals

Describe how to choose a career field.

Explain how to obtain the education you need.

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On the back of the self-control sheet, rank yourself on these 9 employee qualities 19 14

JOB FACTS

Fact 1 – The salary gap between low-skill and high-skill jobs is growing wider.

Fact 2 – Education pays.

Fact 3 – Many of the fastest growing jobs are in technical fields that require a year or two of training beyond high school.

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By 2014, these will be the fastest growing occupations*:

1. Network systems and data communications analyst 2. Physician assistant 3. Computer software engineer, applications 4. Computer software engineer, systems software 5. Network and computer systems administrator 6. Database administrator 7. Physical therapist 8. Medical scientist 9. Occupational therapist 10. College instructor http://money.cnn.com/magazines/business2/nextjobboom/ 19 16

Demand for skilled and technical workers has grown.

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JOB FACTS, concluded

Fact 4 – Jobs are less stable.

– Workers typically change jobs six or more times.

Fact 5 – An entrepreneurial, self-directed approach to careers is important.

A CAREER DILEMMA:

A balance should be struck between a career that you feel passionate about and a career that will provide the income necessary to support your preferred lifestyle.

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PLANNING FOR COLLEGE AND COLLEGE EXPENSES

Grants and Scholarships Educational Loans Work Aid 19 20

COLLEGE COST AND FINANCIAL INFORMATION

www.collegeboard.com

INFORMATIONAL VIDEO

www.libraryvideo.com

WEB SITES

www.fastweb.com

www.finaid.org

www.ed.gov/finaid/landing.jhtml

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Lesson 1.3 Budgeting

Goals

Discuss budget components Identify income and expenses 19 22

TRACK INCOME AND EXPENSES

Fixed expenses – amounts you have committed to spend Flexible (aka

variable)

expenses – amounts you can choose to spend or not to spend Budget – A plan for dividing your income into spending and saving options A budget is a tool for analyzing income versus spending.

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Lesson 1.4

Manage Your Money

Goals

Describe the use of credit and credit cards.

Explain self-provider skills.

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WISE USE OF CREDIT

Limit the use of your credit card to these circumstances: – major purchases – an unanticipated emergency or a life-enriching opportunity – purchases where a retailer is offering an interest rate that is lower than the rate you are earning on your savings or investments 19 27

USE OF CREDIT CARDS

Be prudent when using your credit card.

About 43% of American families spend more than they earn each year.* Average households carry some $8,000 in credit card debt.* Personal bankruptcies have doubled in the past decade.* *from http://moneycentral.msn.com/content/SavingandDebt/P70581.asp

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INTELLIGENT BUYING

1. Plan purchases and avoid impulse buying.

2. Consult product information sources.

3. Comparison shop 4. Creative purchasing 19 29

DOING WITHOUT

A self-disciplined approach to buying items or foregoing purchases will help you achieve long term financial goals.

SELF-PROVIDING

Self-Providing – providing in a direct hands-on way for your needs and the needs of your family – Home maintenance skills are invaluable.

– All skills that enable you to fix what you own or prepare something from scratch will help you make wise use of your money.

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SUMMARY

1.1 THE IMPORTANCE OF PLANNING 1.2 DEVELOP A CAREER PLAN 1.3 MAKE A BUDGET 1.4 MANAGE YOUR MONEY

Assignments for Ch 1:

•

Unit 1 study guide

•

Prospective portfolio research

•

Math worksheet

•

Quiz, Unit 1, Thursday, April 2 (20-25 points)

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Describe the relationship between changing economic conditions and investment choices.

Estimate future expenses based upon trends from the past five years.

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4.

Why are investments in something other than a savings account attractive to consumers?

5.

If the oldest child starts college in ten years, what will it cost per year according to the trends from the past five years?

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