G1 © Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Setting Financial Goals “Take Charge of Your Finances”

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Shake Out My Future Activity  Complete the Shake Out My Future worksheet.  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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Goals Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Financial goals – specific objectives to be accomplished through financial planning Education goals - enable individuals to prepare for future success in the workplace

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Goals Specific State exactly what is to be done Measurable Include how the goal can be measured Attainable Determine steps to reach the goal Realistic Do not set goals for something unrealistic Time Bound State when the goal will be met

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 SMART Financial Goals State exactly what is to be done with the money involved S pecific Write the exact dollar amount the goal is for M easurable Determine how it can be reached, which is often determined by the individual’s budget A ttainable Do not set goal for something unattainable or unrealistic R ealistic Specifically state when the goal needs to be reached T ime Bound

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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 Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal #1 Answer: Attainable

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal #2 Answer: Measurable

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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.

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 3 Answer: Specific

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 4 Answer: Time Bound

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 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

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What is Missing?  Financial Goal # 5 Answer: Realistic

© Family Economics & Financial Education – Revised April 2008 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Conclusion  Review the following: Goals  Financial goals  Short-Term goals  Long-Term goals  SMART goals  Questions?