1. Unit 1 - 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. 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

7. 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

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

9. 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

10. 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

11. 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

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

13. 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

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

15. REALITY
RESPONSIBILITY
RESTRAINT
1-N

16. SAVING
SPENDING
SHARING
1-O

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