Values, Needs, Wants, and Goal Setting Introduction The Essentials to Take Charge of Your Finances

What are Values? Value - Something that is desirable, worthwhile, and important Influenced by family, friends, teachers, coaches, television, and movies Each person has different values which guide his/her daily decisions

Teen Awards Ashton Kutcher "Teen Award" speech. Excellent. YouTube

Needs Need - something necessary or required for life Brainstorm examples of needs Food, water, clothing and shelter

Wants Want - something unnecessary but desired May increase the quality of living or make a person happier Brainstorm examples of wants If music is valued, a person may want a lot of different musical instruments, songs, and equipment. How do values influence wants? If being popular or having all of the newest gadgets is valued, a person may have a lot of wants

You Decide! Car Nike Sneakers Hot Tub Computer Food iPod Cell Phone Clothes

Willis Tower Largest building in North America The Willis (Sears) Tower stands 110-stories high at 1,450 ft. On top of the main building stand two antennas. The East Antenna is 253' tall and the West Antenna is 283' tall for a total 1,729 feet from base of building to tip of antenna. Those antennas were placed there to negate the sway of the building from high winds and lightning storms that continually visit the windy city of Chicago. The base of the antennas measure 12' diameter. NOTE: A football field is 300 ft.—this building would be as tall as 6 football fields.

Governing Values I-Beam Simulation The Willis Tower is one of Chicago's most well known attractions. Construction of this 110 story building began in 1970 and took three years to complete.

How do you determine your Governing Values? Steven Jobs "If today were the last day of my life..." YouTube

How do needs and wants influence how people spend money and make financial decisions? Your values influence your needs and goals; the decisions you make affect your goals; spending money on your wants may limit meeting your needs; and all of this is your personal financial responsibility.” Source: NEFE

Spending Money How do values influence how people spend money and make financial decisions? If an individual values helping others, he or she may decide to give money to a church or other charitable groups TOMS Shoes Costco Article

What are the issues? Attitude Emotion Desire Experience

Ka Ching

What is Financial Planning? More than budgeting More than investing Financial planning is a thinking process that helps achieve goals.

Which road to take (30 sec to 1:30)

"If you don't know where you are going, ANY ROAD will take you there." Cheshire Cat, Alice In Wonderland

DFGDF What road are YOU on?

Financial Planning A blueprint or plan for managing all components of a person’s money. Arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.

What are the components of a Financial Plan? Goals Net Worth Statement Budget Insurance Plan Savings Plan Investment Plan Each topic will be addressed in detail through out the course.

Benefits of Having a Financial Plan? You have more money and financial security. You know where to use money to achieve your goals. You have less chance of going into debt you cannot handle. You can help your partner and support children if you have a family.

How do I make a Financial Plan? Determine your current financial situation. Make a list of items that relate to your finances: Savings/Investments Monthly Income (Job Earnings, Allowance, Gifts, Interest) Monthly Expenses Debts

How do I make a Financial Plan? Develop your financial goals. Consider your attitude toward money. Ask yourself the following: How do I determine if it is more important to spend money now, or save it for the future? How do your personal values affect your financial decisions?

What is a Goal? Goal - something a person intends to accomplish Examples Graduate from high school Earn a college degree Buy a car Get a job Lose 15 pounds

Types of goals Long-Term – can be accomplished in more than one year Attending college Getting a great job Buying a new car Short-Term – can be accomplished within one year Improving grades at school Making the basketball team Saving money to buy a new MP3 player Goal setting helps you to visualize and plan actions of what you want and then to carry it out.

Here is a challenge! Pair up with the person next to you Supplies: A pinch of toothpicks and a handful of small marshmallows Task: Create a free standing tower using your supplies But….before you build, work as a pair and write down a GOAL to serve as your road map

Marshmallow Tower Ready – Set – Build How did your goal help you to build a better tower?

Did You Reach Your Goal? Was your goal specific? How did you measure if you reached your goal? Was your goal attainable or possible? Was your goal realistic? How much time did you set aside to achieve your goal?

SMART goals In order to set goals effectively, they need to be well written Edit the goal you wrote for the tower using these guidelines: Specific – State exactly what is to be done Measurable – Include how the goal can be measured Attainable – Determine steps to reach the goal Realistic – Do not set goals for something unrealistic Time Bound – State when the goal will be met

SMART Goal setting Source: NEFE

Specific…….. Measurable… Attainable….. Realistic……. Time-Limited.. SMART Goals Specific…….. “Pay for lodging, transportation, & meals for a 5-day trip to Washington, D.C. Measurable… Raise $1,000 ($300 from 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 March 1, 2013.” Source: NEFE PowerPoint available online

Conclusion Any Questions? Review the following terms: Value Needs Want Discuss the following concepts The relationship between values and money The benefits of goal setting