Bellwork Do you consider yourself a “saver” or a “spender”? What do you spend most of your money on? How do you “get” money to spend? In other words, where does your income come from?

Unit 1 - Your Financial Plan: Where It All Begins

“Most people don’t plan to fail… They simply fail to plan!”

The Five-Step Financial Planning Process 1-B

Sample Wants and Needs NEEDS Food for breakfast Clothes for school Transportation to school or work ______________ WANTS An iPOD DVD Players Cell Phone Hot Car ______________ 1-C

What are the 5 top items male teens buy? Food 30% Soda 26% Candy 24% Clothes 21% CD/music 19%

What are the 5 top items females spend $ on? Clothes 43% Candy 34% Pop 32% Food 31% Tied: Salty snacks and lunch 22%

Values The beliefs, qualities, or standards that you consider important Religious faith or beliefs Social causes Handling money responsibly Friendships / The people I hang out with ____________________________ 1-D

Term Goals Within three months Three months to a year More than a year SHORT-TERM GOALS Within three months INTERMEDIATE-TERM GOALS Three months to a year LONG-TERM GOALS More than a year 1-E

Delayed Gratification The willingness to give up something now in order to get something better in the future. Saving money over 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. 1-F

S-M-A-R-T GOAL CRITERIA Specific Measurable Attainable Realistic Time-Limited 1-G

Specific…….. Measurable… Attainable….. Realistic……. Time-Limited.. SMART Goals Specific…….. “Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C.” Measurable… “$300 through fundraising, $50 from birthday money, save $25 a week.” Attainable….. “If I stick to my plan, I’ll have the money when I need it.” Realistic……. “I still have enough money to live on while I work toward this goal.” Time-Limited.. “I need to have all the money by 6 months from now.” 1-H

Factors That Affect Decision Making Age Factors That Affect Decision Making Needs Wants What about you? Family Culture Time Society Motivation Money Values Education Habits Attitudes 1-J

Decision-Making Process Identify Your Goal Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results 1-K

The Decision- Making Process NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All begins Decision Making and Financial Planning The Decision- Making Process The Financial Planning Process Evaluate Results Make a Decision Identify Your Goal Weigh Pros and Cons Establish Criteria Monitor & Modify the Plan Implement Set Goals Create a Plan Analyze Information 1-L

Today’s Assignment Complete exercises 1C on page 6 Complete Assignment 1-1 on page 7 You will write IN the books.