Establishing Healthy Financial Habits

Focus Questions 1.Why do you think it is important to allot some money from each paycheck or allowance payment to savings? 2.In what ways should spending reflect a person’s value system? 3.What are the steps in setting up a financial plan? 4.How can you tell if you are moving toward your goals? How do you know when you achieve them?

The Share Save Spend System An approach to money management that divides funds into three categories according to the individual’s values.

Sharing and Saving Buying gifts for needy people at the holidays Making a donation to a cause you believe in Volunteering for an organization Putting away money for short term, medium term, and long term goals

Spending Reconcile your checking account statement Overdraft fee a penalty payment for having a negative balance in an account

Your Values What is important to you? What parts of your life deserve the most attention? What charities and other causes do you support?

Questions to ask others about values and money How do you save money? What do you do with the money you save? How do you share with causes you believe in? How did you decide to make those contributions? Do you avoid certain ways of spending money? Why, or why not?

Questions to ask yourself about values and money  What charities and causes are important to me?  How have I contributed time or money to causes I believe in? How could I contribute in the future?  Whose values and actions do I admire? How could I mirror those philosophies and actions?  What short term and long term goals do I have?  What would I like to have money for that I currently do not?

Your Financial Plan 1.Determine your current situation 2.Set and prioritize your goals 3.Develop a long term plan 4.Organize your records 5.Set up a budget 6.Keep it simple

Determining Your Income Work, allowance, investments, gifts Base your financial plan on income you know is reliable

Determining Your Expenses Sports and Hobbies Food Clothing Grooming Entertainment Transportation Connectivity

Questions to ask yourself?  Did my spending reflect what is important to me?  Two years from now, which of these purchases will still mean something to me?  Would I be embarrassed if my family or friends saw my list?  What percentage of my spending is for necessities?

Your Financial Goals What you want your money to do for you in the future

Identifying and Prioritizing Your Goals Is the goal a need or a want? Needs are things you must have; wants are things you would like to have Financial goals should be specific, measurable, and realistic

Implementing Your Plan to Reaching Your Goals 1.Continue to put the money away each week toward your goals 2.Not use the money for something else

Adjusting Your Plans Once you achieve your short term goals, do you add a new short term goal or put away the extra money toward your long term goals