“Most people don’t plan to fail… They simply fail to plan!” 1-A

The Five-Step Financial Planning Process 1-B

Sample Wants and Needs NEEDS Food for breakfast Food for breakfast Clothes for school Clothes for school Transportation to school or work Transportation to school or work ______________ ______________ WANTS An iPOD An iPOD DVD Players DVD Players Cell Phone Cell Phone Hot Car Hot Car ______________ ______________ 1-C

On a separate sheet Write down 5 things that you’ve spent money on lately and label them with an N or a W.

Values Getting a good education Getting a good education Religious faith or beliefs Religious faith or beliefs Social causes Social causes Handling money responsibly Handling money responsibly Friendships / The people I hang out with Friendships / The people I hang out with ____________________________ ____________________________ 1-D

At the bottom of the same sheet. List 3 – 5 things that you value or that mean something special to you. Make sure your name is on the paper.

Term Goals SHORT-TERM GOALS SHORT-TERM GOALS – Within three months INTERMEDIATE-TERM GOALS INTERMEDIATE-TERM GOALS – Three months to a year LONG-TERM GOALS LONG-TERM GOALS – More than a year 1-E

Delayed Gratification Saving money over time to make a major purchase. Saving money over time to make a major purchase. Waiting to buy a new product until the price goes down. Waiting to buy a new product until the price goes down. Waiting to see the latest movie until the crowds get smaller and the lines shorter. Waiting to see the latest movie until the crowds get smaller and the lines shorter. _____________________________________ _______________________________ _____________________________________ _______________________________ 1-F

S-M-A-R-T GOAL CRITERIA S pecific M easurable T ime-Limited R ealistic A ttainable 1-G

SMART Goals 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 Financial Goals State exactly what is to be done with the money involved Specific Write the exact dollar amount the goal is for Measurable Determine how it can be reached, which is often determined by the individual’s budget Attainable Do not set goal for something unattainable or unrealistic Realistic Specifically state when the goal needs to be reached Time Bound

SMART Financial Goal Goal – I want to buy a new car SMART goal – – Specific – I plan to save for a down payment on a new car – Measurable – I plan to save $5,000 for a down payment on a new car – Attainable – I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck – Realistic – It is realistic to save $200 from each paycheck for a down payment on a car because I usually waste the money on unnecessary items instead of saving it – Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

What is Missing? Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals Financial Goal #1 – I plan to save $5,000 for college living expenses in four years.

What is Missing? Financial Goal #1 Answer: Attainable

What is Missing? Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals Financial Goal #2 – I plan to save for a new computer by saving $150 each month for one year.

What is Missing? Financial Goal #2 Answer: Measurable

What is Missing? Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals Financial Goal #3 – I plan to save $2,500 by saving $105 each month for 2 years.

What is Missing? Financial Goal # 3 Answer: Specific

What is Missing? Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals Financial Goal #4 – I plan to save $1,500 to buy a used car by saving $75 from each paycheck

What is Missing? Financial Goal # 4 Answer: Time Bound

What is Missing? Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals Financial Goal #5 – I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months

What is Missing? Financial Goal # 5 Answer: Realistic

Step 2 Analyze Information on how to save

Spending Record $35.00 $5.00 $15.00 $6.00 $4.00 $7.00 $8.00 $15.00 $40.00$55.00 $ I

Step 3 Create Your Plan

What about you? Factors That Affect Decision Making 1-J Wants Family Values Time Money Needs Habits Motivation EducationAgeAttitudes Society Culture

Evaluate Results Decision-Making Process Make a Decision Identify Your Goal Weigh Pros and Cons EstablishCriteria 1-K

Step 4 Implement Your Plan

REALITY RESPONSIBILITY RESTRAINT 1-N

Step 5 Monitor and Modify Your Plan