Financial Literacy For today: What is important to know? What do you want to know? Evaluating financial health Developing financial goals Creating a personal balance sheet

Let’s get started . . . Why study the topic of personal finance? What do you need to know? Like to know?

Evaluate your financial health Where does your money come from and where it does it go? Do you spend wisely? Do you plan for future financial goals? How do you rate now?

Goals What is a goal? Why set goals? How is goal setting important to financial planning? Have you set any financial goals?

Goals Short Term Financial Goals Less than a year Examples: Intermediate/Mid-Range Financial Goals Up to 5 years LongTerm Financial Goals 5 + years

S M A R T Goals S Specific M Measureable A Achievable R Realistic T Time Frame

Are these well written goals? To have money in the bank. To set aside $15,000 by June for a new car. To save $300 for a trip to California by September 2013.

Goals Specific Measureable Achieveable Realistic Time Frame SMART Goals Specific Measureable Achieveable Realistic Time Frame For homework: Create 6 Financial Goals

Goals Short Term Financial Goals __________________________ Intermediate/Mid-Range Financial Goals LongTerm Financial Goals

Personal Balance Sheet A snapshot of your financial status Displays your net worth Assets Liabilities Net worth

Personal Balance Sheet Assets What you own Liquid Investment Tangible

Personal Balance Sheet Liabilities What you owe Mortgage Loans School Auto Personal Credit cards

Personal Balance Sheet Net Worth What you are actually worth Assets - Liabilities = Net Worth

Assignment Prepare a personal balance sheet Due tomorrow at the beginning of class