1. Personal Finance and Resource Management Objective 2.01

2. Needs VS Wants
Needs are what you must have to survive. Something you truly can’t live without.
Things like air, water, food, clothing, shelter are needs.
Wants are what you would like to have but do not need in order to survive. Something you’d like to have but will be ok without.
Things like cell phones, video games, pets and iPods are wants—not needed for survival but nice to have.
Opportunity cost is the “cost” we pay when we give up something to get something else.

3. Activity: Needs VS Wants
On sticky notes write needs and wants that YOU have spent your money or your parents money on to buy these things. One need/want per sticky note.

4. Goals and Values Goals are what you want to achieve in life.
Goals help by providing direction in life.
Short-term goals are goals that can be achieved in a short amount of time. It can be a few days, weeks, or months.
Long-term goals are goals that can be achieved in a longer amount of time. It can be months, years, or even an entire lifetime.
Values are strong beliefs, feelings, or ideas about what you feel is important.

5. Set A Goal
Think of something you really, really, really want to purchase…something that is NOT a need. Write a goal that will help you save enough money to make this purchase. Make sure your goal is measureable! Ex: “I will save ____ dollars every ____ for 2 years in order to purchase a new ____.

6. Teens as Smart Consumers
Consumers are people who buy goods and services.
Consumers must decide what to buy, where to buy, and when to buy.

7. Buying

8. Buying Decisions
Sellers use different forms of media to advertise their products.
Advertisement is a message that persuades consumers to buy a product or services.
Types of Advertisement
Informative Ads-send the message that an item is a good buy for the price or because of its quality
Image Ads-connect a product or service to a lifestyle that consumers would like to have and often use celebrities to endorse a product
Advertising Techniques-slogans, endorsements, cartoon characters, emotional appeals.

9. Advertising Tricks

10. Advertising…

11. Trends and Impulse Buying
A trend is a temporary fashion or product.
Impulse buying is when someone makes a sudden decision to buy something you did not plan to purchase.

12. Job/Career/Income A job is work you do for money.
A career is something you build by going to school and working jobs related to the career you want.
An entrepreneur is a person who starts his or her own business.

13. Income and Your Career
Your income is the money you earn and receive regularly.
Ways you might earn money as a teenager:
Allowance
Babysitting
Odd jobs for neighbors
Gifts

14. Careers Activity
Write 3 careers you are interested in pursuing in the future on three different sticky notes. When complete, put all of your sticky notes in the middle of your table.
Working with your table partners, group according to your career choices and discuss what types of education, jobs, interests, and talents you may need in order to pursue your career dreams. Complete Career Poster.

15. Spending and Saving Money
Expense is the cost of goods and services.
A budget is a spending plan people make in order to make sure there is enough income to cover all expenses.
A balanced budget is a budget with sufficient income to cover all expenses.

16. Making Decisions
A decision is a choice you make about what to do or say in a given situation.
The Decision Making Process is a set of six basic steps to help you make decisions, solve problems, or reach goals.
Step 1: Define the problem
Step 2: Examine the alternatives
Step 3:Consider how choices relate to goals
Step 4:Identify acceptable choices
Step 5: Decide on one choice
Step 6: Evaluate results

17. Decision Making Activity Problem: Your (Mom, Dad, and child living at home) family’s car is having trouble and it’s time to purchase a new car but there is NO extra money in the budget. What will you do?
Monthly Expenses
(Monthly pay: $2500 net)
Mortgage/Rent: $700
Gas: $150
Electricity/Gas: $150
Water/Trash: $30
Phone/internet/cable: $100
Cell phone: $50
Groceries: $200
Medical: $20
Vacation Savings: $100
Out to Eat: $100
Clothing: $200
House Cleaning: $150
College Loan: $150
Credit Cards: $200
Insurance: $75
Car payment: none
TOTAL EXPENSES __________
Questions to Discuss/Answer 1. Where can you adjust your budget, and by how much? 2. How much money do you have to spend on a car currently and after you adjust your budget? 3. What kind of car would you recommend, such as old or new, features, etc? 4. What are the monthly/daily sacrifices that may have to be made? 5. What could you do to make some extra money?

18. BE A SMART CONSUMER!!! SAVE!!! Think about and plan for your future!!!