Transcript Decision Making Process PPT

Decision Making Magic
Decisions:
Definition, Types,
Process and Benefits
2.5.1.G1
What is a Decision?
• A choice that is made about things that affect a
person’s life
• There are two types of decisions
o Routine
o Major
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Routine Decisions
•
•
•
•
Are made on a day-to-day basis
Don’t require a lot of time to think through
They can even become a habit in daily life
For example, deciding…
o What to wear in the morning
o What to pack for lunch
o Where to sit on the school bus
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Major Decisions
• Have long-term effects on a person’s life
• Should be made very carefully and with a lot of
thought
• For example, deciding…
o What type of car to buy
o To attend college
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Your Decisions
• Think about some of the decisions you have made
in the past week?
• Are they routine or major decisions?
o Share one of your decisions and explain whether it is a
routine or major decision.
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Financial Decisions
• A type of major decision
• Impacts an individual’s or family’s well-being
o Well-being is the state of being happy, healthy, and
prosperous
• For example…
o Saving for a family vacation
o Spending money wisely
o Purchasing new items
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Decision Making
Process
• It guides individuals to think through all
components of making a good decision
• STEPS:
1. Identify the problem
2. List alternatives
3. State your Criteria
4. Evaluate your Alternatives
5. Make a decision and evaluate the results.
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
2.5.1.G1
Steps
1. Identify the Problem
o
Know the problem or question before searching for an
answer
2. List Alternatives
o
Brainstorm pros and cons for all of the possible
choices
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Steps Continued
3. State your Criteria
o
Determine what requirements are needed for you to
make your decision.
4. Evaluate your alternatives
o
What are the pros and cons of your choices? This
will help to narrow down your list.
5. Make a decision and evaluate the results.
o
This will help in making better decisions in the future
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Practice
• Read the problem on your worksheet
• Work through each step of the
decision making process
• Share your responses
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
So Many Choices!
• There are many different options to chose when
making a decision
• Every option has a different consequence
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Benefits of Good
Decision Making
2.5.1.G1
• When decision making skills improve, quality of
life is enhanced
• Making better choices to your decisions results in
better use of time, money and other resources
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Values
• Values are fundamental beliefs or practices about
what is desirable, worthwhile, and important
• People have different values that influence the
decisions they make
• The decision-making process can be used to:
o identify personal values
o develop the best solution to a problem
o Helps when making major decisions in your life
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Everyone has different
values
Education
Family
Financial
Security
Honesty
Helping
others
?
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Age
2.5.1.G1
Factors That Affect
Wants Decision Making Needs
What about you?
Family
Time
Money
Values
Habits
Culture
Motivation
Education
Attitudes
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1-J
Society
2.5.1.G1
Needs and Wants
Needs – goods
or services that
are required
for survival
Wants– the desire
for goods and
services that can
increase our quality
of life but are not
absolutely
necessary for our
survival
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Why do needs
and wants
matter?
2.5.1.G1
Will help you decide what to spend and not
spend your money on
Use trade-offs
and opportunity
costs to help you
make these
decisions
Trade-off - giving
up one thing for
another
Opportunity cost –
the value of the
next best
alternative that
must be forgone as
a result of a
decision
Is the trade-off to your decision a need or a want?
What is the value (opportunity cost) of that trade-off to you?
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Why is it important to
understand what influences
your decisions?
2.5.1.G1
Understanding
what influences
your financial
decisions
Decisions that
create high
well-being
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
2.5.1.G1
Summary
• Decision- a choice that will affect a person’s life
o Routine- everyday, simple decisions that can become
habit
o Major- big, complex decisions that should be thought
out carefully
• Decision Making Process
o What are the steps?
• Remember… The choices you make dictate the life
you lead.
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 19
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Needs, Wants, and
Cupcakes
2.5.1.G1
Icing and decorations represent wants, the extra
items that make our lives interesting and
enjoyable.
The cake part of a cupcake represents our
needs. They must be present and addressed
before considering any icing or decorations
(wants).
When making spending decisions, consider if your needs are met before spending on any
of your wants. What you determine to be a need versus a want will depend on your
personal values, just like your preference for different types of cupcakes.
© Family Economics & Financial Education – January 2006 – Get Ready to Take Charge of Your Finances – Decision Making Magic – Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona