1. Unit 1B - Your Financial Plan:
Where It All Begins

2. “Most people don’t plan to fail… They simply fail to plan!”

3. The Five-Step Financial Planning Process
1-B

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

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

6. Goals You can’t hit a target you cannot see. The basic rules:
Goals must be written down
Realistic plans must be made for their accomplishment
Deadlines must be set and honored

7. Goals Goal setting is an art that makes everything else possible.
Most successful people are obsessive goal setters.
Once you have goals set, you have a pattern for opportunity

8. Goals
Successful people have a perfect balance between thought and action
You must think before you act but you have to act
Don’t be afraid to take a risk

9. Goals Failure is inevitable
It just should not be linked with giving up
How many chances do you give a baby to walk before you stop them from trying?

10. Goals
Problem with achieving goals is that we fall apart once we achieve our goal example: dieting
Rewards of goal setting come not from earning $1 million but in having learned the lessons about what it takes to become a millionaire

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

12. Delayed Gratification
Saving money over time to make a major purchase.
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.
____________________________________________________________________
1-F

13. S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-Limited
1-G

14. Specific…….. Measurable… Attainable….. Realistic……. Time-Limited..
SMART Goals
Specific……..
“Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C.”
Measurable…
“$300 through fundraising, $50 from
birthday money, save $25 a week.”
Attainable…..
“If I stick to my plan, I’ll have the money when I need it.”
Realistic…….
“I still have enough money to live on while I work toward this goal.”
Time-Limited..
“I need to have all the money by 6 months from now.”
1-H

15. Spending Record $6.00 $35.00 $4.00 $7.00 $5.00 $8.00 $15.00 $15.00
$55.00
$40.00
$15.00
1-I

16. Factors That Affect Decision Making
Age
Factors That Affect Decision Making
Needs
Wants
What about you?
Family
Culture
Time
Society
Motivation
Money
Values
Education
Habits
Attitudes
1-J

17. Decision-Making Process
Identify Your
Goal
Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
1-K

18. The Decision- Making Process
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All begins
Decision Making and Financial Planning
The Decision- Making Process
The Financial Planning Process
Evaluate
Results
Make a Decision
Identify Your
Goal
Weigh Pros
and Cons
Establish
Criteria
Monitor & Modify
the Plan
Implement
Set Goals
Create a Plan
Analyze
Information
1-L

19. Know What You Want Identify Your Goal Decide where to eat Establish
Criteria 1. 2. 3.
1-M

20. REALITY
RESPONSIBILITY
RESTRAINT
1-N

21. SAVING
SPENDING
SHARING
1-O

22. Unit 1: Your Financial Plan:
Where it All Begins