Your Financial Plan: Where It All Begins

Which one do you agree with?

“Most people don’t plan to fail… They simply fail to plan!” Discuss the questions in the student workbook on pages 1 and 2. Complete the “What Do You Think?” on page 2. 1-A

True/False Teens get most of their money from part-time jobs. Most teens who are 18 or 19 years old have a checking account. True – 65% have a checking account Ninety percent of high school students rely on their parents for information about money. True On average, American teens spend more than$10 billion a year. True, but the amount is over $150 billion

Personal Finance is 20% Knowledge 80% Behavior REMEMBER Personal Finance is 20% Knowledge 80% Behavior

Decisions: May involve trade-offs, sacrificing one option right now in order to achieve another. Also, decisions made today will affect decisions in the future. Finally, each decision carries with it related consequences that affect us, other people and the world around us. Today Not completing homework Consumption of alcohol You think of another Tomorrow Grade of zero Sick feeling; possible arrest Future Probably nothing If continues, addiction; money loss

Needs:. Very basic things we. must have to survive 4 Walls: Needs: Very basic things we must have to survive 4 Walls: Shelter, food/water, clothing, & transportation Wants: Things that make life more interesting and fun, but can live without.

Essential Needs:. Basically our. 4 walls Near-essential Needs: Essential Needs: Basically our 4 walls Near-essential Needs: Cell Phone, Internet Wants: Endless List

Objective Question of the Day????? Agenda Wednesday, Jan. 7 Thursday, August 11 Objective I CAN establish a variety of goals based on my values. Question of the Day????? Yesterday’s Decision: Run two miles after school Today’s Possible Consequence: ??????????? Answers will vary depending on your normal physical activity Agenda Sit at tables or computers (with names out) Complete Objective/Question Class Roll and Names Take up Class Information Sheets Turn in by Friday for a 100 Notes – Your Financial Plan Value Survey – graded assignment SMART Goals

Values: Beliefs and practices in your life that are very important to you; influenced by * Parents * Other family members * Friends * Religion * What you read * Experiences CAN CHANGE OVER TIME.

Complete Handout Values Survey Activity

list 10 goals in each column. BACK OF VALUE SURVEY Make four columns and list 10 goals in each column. Personal Fun Financial Family

Types of Goals Personal Goal – ways you hope to transform your personal life. How would you improve yourself? Ideas include eat healthier, attend a sports clinic, take a painting class, learn to play the guitar… Fun Goal – It’s always a good idea to think about things you’d hope to do to make your life more interesting. Ideas include sky diving, hiking the Appalachian Trail, or going on a blind date, going on a cruise... Financial Goal – Think about your life financially or what you want in a career over the next five or so years. Ideas include beginning to buying a specific car, going to prom, going to college, asking for a promotion... Family Goal – Most of you have ideas about how you want your current and future family to be. Ideas include going to your sister’s basketball game, going on a family vacation, watching a movie with a little brother, getting married, having children...

Individual Project Individual Project Parent Goal Essay Parents (and other adults) have goals for you. Discuss with that person about goals they have for your life AND how they feel they have helped you achieve those goals. Write in detail about the conversation. Individual Project

Weekly Cash Flow Class Assignment You will need to keep track of your receipts and payments over the next week. Receipts + Payments – This assignment is about BEHAVIOR!!!! Class Assignment

Goal Travel to Italy in the summer of 2017. Find out anticipated cost. Save a percent each month. Ask someone to go with me. Book airline tickets & hotel reservations. Read about Italy. Decide exact locations to visit. Learn about money exchange. Have students list steps they believe are needed to obtain this goal.

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

Specific…….. Measurable… Attainable….. Realistic……. Time………... 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………... “I need to have all the money by 6 months from now.” 1-H

Term Goals Less than a year One to five years More than five years SHORT-TERM GOALS Less than a year MEDIUM-TERM GOALS One to five years LONG-TERM GOALS More than five years 1-E

Include your age for each goal. On your own paper. Assignment Each student will develop FOUR goals Short-term (by end of nine weeks) Short-term (less than a year) Medium-term (1-5 years) Long-term (over 5 years but less than 8 for class) You need to list at least five steps that will help you accomplish the four goals listed. Also, be thinking about a “money” goal to accomplish by the end of the nine weeks. Include your age for each goal. Remind the students about the traveling to Italy goal. Give examples if a possible goal is to make a basketball team – steps could be to practice so much each day, know the date of try-outs, make arrangements to be there, shoes, money, etc. Stopping point if time appropriate. THINK SMART

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

Delayed Gratification Willing to give up something you want now to get something even 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. Complete exercise 1B on page 5 1-F

Opportunity Cost: The value of what is given up when you choose one option over another. What option did you chose over another in the past 24 hours? Satellite Decision: Smaller decisions that can result from a major decision.

Satellite Decision – Senior Class Trip to ??? When to go/length of stay ??????? ??? ??? ??????? Where to Stay Major Decision: Class Trip to ??? ??? ??? ??? Where to go Transportation ??? ??? Who will go ??? ??? ??? ???

Small Groups Each group will be given a “Major Decision.” Groups will complete all the “circles” about choices that have to be with that decision. Transfer the choices to a larger colored Post-It – using markers and being neat. Present to the class.

Group Names: Satellite Decision Buying a USED car

Group Names: Satellite Decision Going to Fall Formal

Group Names: Satellite Decision Going to Washing DC

Satellite Decision Group Names: Planning a Surprise Birthday Party for my Best Friend

Group Names: Satellite Decision Going to College

Group Names: Satellite Decision Moving to Atlanta with a friend

Group Assignment Satellite Decision Going to Fall Formal or Prom Going to college Planning a family vacation Planning a surprise birthday party for someone Purchasing a used car Going to the Washington DC Moving to Atlanta with a friend Each group member needs to ask FIVE different teens at JCHS to list items they have purchased in the past week. Compile an individual list; be sure to specify male or female.

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 Examine your options Establish Criteria Weigh Pros and Cons Monitor & Modify the Plan Implement Set Goals Create a Plan Analyze Information You will have to make this last oval 1-L

Ellie On Her Own List 20 things that Ellie must do in order to be prepared for her move to St. Simon’s Island. Complete the math calculations in Section 2 ONLY on the back Biweekly Gross Pay - $1,423.08

Ellie On Her Own Biweekly Gross Pay Withholding $1,423.08 Fed Income Tax (11.5%) $163.65 State Income Tax (2%) $28.46 Social Security (6.2%) $88.23 Medicare (1.45%) $20.63

Ellie On Her Own Minus Total Withholdings Biweekly Net Pay Total $400.97 Biweekly Gross Pay $1,423.08 Minus Total Withholdings Biweekly Net Pay $1022.11