1. How do my personal financial decisions impact my success? Unit One

2. Why do we set personal goals?
Needs-The ingredients for
making or maintaining
physical life.
Food and water
Shelter
Clothing
Wants-Something desired
but not necessity
College education
High standard of living
Nice car
Laptop
iPod

3. How can goal-setting help us achieve successful financial management?
Career choices and Incomes
Appropriate education attained
Budgeting
Savings
Financial Investments
Effective Consumer Skills
Goals provide a sense of direction to achieve financial success.

4. Economic Way of Thinking
People have alternatives-options.
Each alternative has Benefits and Costs.
We respond to incentives that affect our self-interest in predictable ways.
Our choices have consequences positive or negative.
How can this reasoning be used to improve
money management and
standard of living?

5. Economic Way of Thinking Vocabulary!
Benefits-something that is favorable to the decision-maker
Cost-sacrifice, loss or penalty to acquire, produce, accomplish or maintain anything
Alternatives-options to choose from
Choice- the best or most preferable alternative
Self-Interest-consideration for one’s own aims or advantages
Consequences-what follows once choice is made
Opportunity Cost -value of the next best alternative when you make a choice

6. Decision-making Process when Thinking Economically
Problem-Define the problem
Alternatives-List alternative solutions
Criteria-Develop a list of criteria that will be needed solve the problem
Evaluate-Evaluate each alternative based on the criteria (costs and benefits)
Decide-Choose the best solution based on your evaluation of each alternative

7. Students need to develop economic ways of thinking and problem solving that they can use in their lives as consumers, savers, entrepreneurs, investors, workers, citizens, and participants in a global economy.

8. How do people make informed decisions about their future careers?

9. Resources in Career Decision-Making
Identify Careers through
Self-Assessment Surveys
Interest
Aptitudes
Work Values
Identify Lifestyle-the way you choose to live your life based on your values.
Values-ideals or principles which are important to you in which you base decisions on
Resources-Things or People that can be used for help and support.
Parents
Educators
Counselors
Personal contacts
Education
Assessments
Job placement centers
Internet

10. What knowledge and skills do I need to reach my financial goals?
Human Capital- the abilities and skills of any individual, acquired through investment in education and training, that enhance potential income earning
Develop human capital through:
Formal education- elementary, secondary & post-secondary schooling
Informal education-experiences outside school
Productivity-a measure of one’s output per hour worked
Entrepreneur-one that take the risk to start a business; work for self;

11. What is the relationship between education and employability?
education and income?
BLS.Gov

12. Sources of Income Career Entrepreneurial ventures
Wages/Salary
Commission/bonuses (personal productivity)
Employee benefits
Entrepreneurial ventures
Investments-Capital gains & Dividends
Savings Interest
Retirement distributions
Inheritance
Social Security
Worker’s Compensation

13. What factors in the economy affect personal financial decisions?
Current Business Cycle
Occupation Trends
International competition
Outsourcing
Financial Markets
Others?

14. Career Self-Assessments
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Go to
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School zip code: 63126
Take assessments
Career Search with Person Match
I WAU