Take Charge of Your Money Class 1: Spending Choices Heather Greenwood Virginia Cooperative Extension Fauquier County Office

Take Charge of Your Money Class Outline Class 1 - Spending Choices Introduction, values, and goals Class 2 - Spending Plans / Making Food Dollars Stretch Budgeting tools and skills Class 3 - Credit and Debt Management Shopping for and maintaining bank accounts Class 1: Spending Choices

Class 1: Spending Choices Key Points Financial plans are based on choices you make using your values, goals, and available resources Most of us must work with other people, (usually family members) in setting up a budget Money is a limited resource Even the best plans can be changed by an emergency or crisis Class 1: Spending Choices

Class 1: Spending Choices Financial Management Must be learned Must be practiced Includes everyone in the household Is not easy Helps you gain control of your money Class 1: Spending Choices

Aspects of a Financial Plan Values Goals Spending plan (budget) Savings plan Debt management plan Insurance Retirement Class 1: Spending Choices

Sorting Economic Values Each participant will receive 1 Economic Values envelope Envelope includes 30 statements on 5 different colors of paper Make 2 stacks - AGREE and DISAGREE What color is most prevalent in the AGREE pile? Why start with this activity in a money management class? Handout 1-5 (All My Money) Class 1: Spending Choices

What Are Your Values? How do your values affect the way you make financial decisions? How do differing values of family members affect a household? Are the 5 values from “Sorting Economic Values” inclusive? If not, what are some other values? What is important to you? Handout 1-1 (All My Money) Class 1: Spending Choices

What Influences Your Values? Life style Personality Emotions Childhood Parental behaviors Culture Media Religious background Education Societal expectations Other life experiences Class 1: Spending Choices

Class 1: Spending Choices Need VS Want NEED? WANT? Handout 1-2 (All My Money) Class 1: Spending Choices

Picture Your Future What would you like your future to look like in 1 year? 5 years? 10 years? How is this picture consistent with your values? How does it relate to your needs and wants? What will it take to achieve this future? Handout 1-3 (All My Money) Class 1: Spending Choices

Goal Development What are your available resources? When do you want to accomplish this goal? Characteristics of successful goals: Handout 1-4 (All My Money) Personal Positive Specific Measurable Ambitious Realistic Time element Written Class 1: Spending Choices

Decision Making Process Identify problem or goal List alternatives Analyze the consequences of each alternative Choose the best alternative Put the choice into action Evaluate the outcome Begin again if needed Class 1: Spending Choices

Class 1: Spending Choices Homework Track expenses Talk with members of your household about values and goals Finish goal worksheet Bring list of bills, due dates, and pay dates Class 1: Spending Choices