How do my personal financial decisions impact my success? Unit One

Why do we set personal goals? Needs-The ingredients for making or maintaining physical life. Food and water Shelter Clothing Wants-Something desired but not necessity College education High standard of living Nice car Laptop iPod

How can goal-setting help us achieve successful financial management? Career choices and Incomes Appropriate education attained Budgeting Savings Financial Investments Effective Consumer Skills Goals provide a sense of direction to achieve financial success.

Economic Way of Thinking People have alternatives-options. Each alternative has Benefits and Costs. We respond to incentives that affect our self-interest in predictable ways. Our choices have consequences positive or negative. How can this reasoning be used to improve money management and standard of living?

Economic Way of Thinking Vocabulary! Benefits-something that is favorable to the decision-maker Cost-sacrifice, loss or penalty to acquire, produce, accomplish or maintain anything Alternatives-options to choose from Choice- the best or most preferable alternative Self-Interest-consideration for one’s own aims or advantages Consequences-what follows once choice is made Opportunity Cost -value of the next best alternative when you make a choice

Decision-making Process when Thinking Economically Problem-Define the problem Alternatives-List alternative solutions Criteria-Develop a list of criteria that will be needed solve the problem Evaluate-Evaluate each alternative based on the criteria (costs and benefits) Decide-Choose the best solution based on your evaluation of each alternative

Students need to develop economic ways of thinking and problem solving that they can use in their lives as consumers, savers, entrepreneurs, investors, workers, citizens, and participants in a global economy.

How do people make informed decisions about their future careers?

Resources in Career Decision-Making Identify Careers through Self-Assessment Surveys Interest Aptitudes Work Values Identify Lifestyle-the way you choose to live your life based on your values. Values-ideals or principles which are important to you in which you base decisions on Resources-Things or People that can be used for help and support. Parents Educators Counselors Personal contacts Education Assessments Job placement centers Internet

What knowledge and skills do I need to reach my financial goals? Human Capital- the abilities and skills of any individual, acquired through investment in education and training, that enhance potential income earning Develop human capital through: Formal education- elementary, secondary & post-secondary schooling Informal education-experiences outside school Productivity-a measure of one’s output per hour worked Entrepreneur-one that take the risk to start a business; work for self;

What is the relationship between education and employability? education and income? BLS.Gov

Sources of Income Career Entrepreneurial ventures Wages/Salary Commission/bonuses (personal productivity) Employee benefits Entrepreneurial ventures Investments-Capital gains & Dividends Savings Interest Retirement distributions Inheritance Social Security Worker’s Compensation

What factors in the economy affect personal financial decisions? Current Business Cycle Occupation Trends International competition Outsourcing Financial Markets Others?

Career Self-Assessments Go to www.kudernavigator.com Register as a new user Complete only the * boxes Enter Activation Code N3785862PQF Check the Accept terms box Begin assessment Career Interests Assessment