LESSON 1: KATRINA STRIKES

TOPICS COVERED LESSON 1: KATRINA STRIKES 1.DEFINE NATURAL DISASTER. 2.EXPLORE FINANCIAL PREPAREDNESS IN THE FACE OF A DISASTER. 3.EXAMINE PLANNING, INCLUDING GOAL SETTING AND DIFFERENTIATING BETWEEN WANTS AND NEEDS. 2

3 NATURAL DISASTERS Natural disasters are naturally occurring events that can cause severe threats to the public health. —U.S. Department of Health and Human Services Lesson 1: Katrina Strikes

Why is it important to prepare for life events or activities in which you want to be successful? FINANCIAL AND EMERGENCY PREPAREDNESS 4 Lesson 1: Katrina Strikes Why might it be important to be plan ahead and be prepared for an emergency?

Risk is the uncertainty about the outcome of a situation or event. To manage risk you must identify the sources of risk and estimate potential losses. Accept, Reduce, Avoid, Transfer MANAGING RISK 5 Lesson 1: Katrina Strikes

An emergency fund should be enough savings to tide you over until life goes back to normal. Has a minimum of 3-6 months living expenses EMERGENCY AND FINANCIAL PREPAREDNESS 6 Lesson 1: Katrina Strikes

Planning helps people make decisions to accomplish their goals. Planning involves managing decisions related to education, earning income, spending, and saving in order to achieve goals. PLANNING 7 Lesson 1: Katrina Strikes

Goals are the aims that people plan to achieve Short-term goals Less than one year Intermediate-term goals One to five years Long-term goals More than five years GOALS 8 Lesson 1: Katrina Strikes

Two Types of Goals Personal Financial Define Spending & Savings Goals Short term Intermediate term Long term Be SMART Specific, Measurable, Attainable, Realistic, Time Bound Implement, Review, Revise, Repeat SET GOALS 9 Lesson 1: Katrina Strikes

A want is something that you desire or would like. A basic need is something you must have to survive. 10 Lesson 1: Katrina Strikes WANTS VS. NEEDS

Unlimited wants versus limited resources Prioritize and make decisions With every decision, something must be given up The highest-valued alternative that is given up when a decision is made SCARCITY AND DECISION MAKING 11 Lesson 1: Katrina Strikes

People make decisions by: weighing the costs and benefits of alternatives ---Costs are negative outcomes as identified by the decision maker ---Benefits are positive outcomes as identified by the decision maker selecting the alternative for which they perceive the most benefits relative to the costs 12 DECISION MAKING Lesson 1: Katrina Strikes

Ready: Prepare. Plan. Stay Informed Ready Kids Emergency Financial First Aid Kit (EFFAK) EFFAK_2010_FEMA.pdf EMERGENCY AND FINANCIAL PREPAREDNESS 13 Lesson 1: Katrina Strikes

14 KATRINA’S CLASSROOM: FINANCIAL LESSONS FROM A HURRICANE Lesson 1: Katrina Strikes Natural disaster Financial preparedness in the face of a disaster Planning, including goal setting and differentiating between needs & wants

Natural disasters are naturally occurring events that can cause severe threats to the public health. A want is something that you desire or would like. A basic need is something you must have to survive. Goals should be specific, measurable, attainable, realistic, and time bound. Part of being financially prepared for an emergency is having enough savings to tide you over until life goes back to normal. IN SUMMARY 18 Lesson 1: Katrina Strikes