1. UNIT I Life Cycle & Planning Long Term Planning & Financial Stages of Life Financial Life Cycle Personal Financial Goals Sources of Income Risk Relationships & Communication Relationships & Communication

2. Every Decision you Make… IS a Financial Decision Decision You sleep a little longer and miss your ride to school; you have to take the bus You forget to return your lunch fee waiver at the beginning of the school year You don’t study at least an hour every day Financial Implication $1.00 cost to catch the bus to school $2.85 cost everyday to eat lunch Thousands of dollars in missed scholarship money

3. How do I Avoid Making Careless Decisions?

4. Goal-setting ideally involves establishing specific, measurable, attainable, realistic and time-bounded (S.M.A.R.T.) objectives. Short-term goals expect accomplishment in a short period of time, such as trying to get a bill paid in the next few days, or getting admitted into college. Planners usually define short-term goals in relation to a long-term goal or goals. Long-term goals are set by an individual for five years or longer. Some examples of long-term goals include assembling a retirement fund, saving for a down payment on a house or for college tuition, buying a second home, or starting a business. Goal-Setting What will you accomplish in the next 5 Years ?

5. Goal-Setting How Much Will Your Goals Cost? SMART Personal Goals Financial Targets Financial Life Plan

6. How Will I Finance MyPlan?

7. Income Income is money you receive… Earned Income: money received from a job. This could be an hourly wage or an annual salary. Investment income: is received when you sell an investment for more than you paid for it (e.g. a stock, bond, or piece of real estate); this is also called a “capital gain.” Gross Income: Income before taxes are paid Net Income: Income after taxes are paid

8. How do I Obtain Income?

9. Income Makes Your Financial Plan a Reality Principal Doctor Lawyer Teacher Game Developer Stock Broker Banker Financial Analyst Etc. Contractor Consultant Salesman Make-up Artist Artist Musician Childcare Provider Etc. Entrepreneur ? See comment

10. How do I Know How Much Income I Need for My Life’s Financial Plan?

11. This is Your Life: Plan For It!

12. But Can I Really Plan for Everything?

13. Defining Risk Risk is the possibility that things may not go as planned or that something will go wrong. Risk is uncertainty. Risk is a part of daily life, and we face risk all the time. There are many different kinds and sources of risk. Because we know that risk is something that we can and should expect, we can take steps to “manage” risk, and we can take “calculated” risks. Preparing for Risk Avoiding Risk – considering decisions before you make them and deciding against high- risk actions. Transferring Risk - Insurance is a way to “transfer” the burden of risk to an insurance company. Anticipating Risk Savings. Have a Plan.. Have more than one Plan Staying Informed – If you don’t know what’s going on, you are putting yourself at risk and at a disadvantage. Risk

14. Wow! What Do I do with All this Cool Information?

15. Relationships & Communication Share What You’ve Learned! Tell a friend or family member something awesome about Unit 1!