1. Personal Finance Unit 1 INCOME
                                     
Personal Finance Unit 1 INCOME
“Most people don’t plan to fail. They simply fail to plan.”

2. What is financial planning?
More than budgeting
More than investing
Financial planning is a thinking process that help achieve goals.

3. How do you build a house? Floor plan Gather resources Consider options
Take action

4. Questions You Will Answer:
What are the five steps in the personal financial process?
How do you set “SMART” goals?
How do your choices affect your money?
How can money help you live a satisfying life?

5. Quotes to Consider
“Most people don’t plan to fail. They simply fail to plan.”
“If you don’t know where you are going, any road will take you there.”

6. Can You Believe…
Only ___% of teenagers have ever made a written plan for their money.
In a national survey, ___% of teenagers thought earnings from a savings account might not be taxed.
13,54

7. Can You Believe…
___% of teenagers surveyed thought you had no responsibility at all to repay fraudulent charges on a credit card.
___% of teenagers surveyed said they put some money in savings when they receive an allowance or earn some money.
63, 49

8. Can You Believe…
___% of teenagers are likely to go to their parents for financial information.
___% of teenagers consider themselves to be spenders rather than savers.
94, 56

9. Financial Planning Process
                                                                                          
Financial planning is an ongoing, thinking process, not just an event or a product. Financial plans need to be revised over time a important circumstances change.

11. STEP 1
Set Goals

12. NEEDS vs WANTS NEEDS Essentials…the basics of life Food Clothing
Shelter

13. NEEDS vs WANTS
WANTS
Simply increase the quality of living

14. Assignment 1.1 page 4 “My Needs and Wants: Can I Tell the Difference”

15. Values
The beliefs and practices in your life that are very important to you.
Family
Friends
Teachers
Church
Work

16. Assignment 1.2
My Values
Page 5

17. Specific
Measurable
Attainable
Realistic
Time-bound

18. SMART Goals Timelines Short Term Intermediate Term Long Term
Up to three months
Intermediate Term
Three months to one year
Long Term
Longer than one year
DELAYED GRATIFICATION

19. Assignment 1.3 My SMART Goals Page 7
Save $25 so I can take my friend out for pizza.
1st of next month
Short term
$25.00
$7.50
$25.00
$7.50

21. Step 2
Analyze Information

22. Cash Flow
A measure of the money you receive and the money you spend.

23. Assignment 1.4 Personal Spending Record Page 8

24. Step 3
Create A Plan

25. Decision Making
The process of considering and analyzing information in order to make a decision.

26. Factors that Can Influence Your Goal Setting and Decision Making

27. Opportunity Cost
Choosing one option may mean giving up altogether another goal.
It’s a tradeoff!

28. Assignment 1.5 My Decision
Pros
Cons

29. Step 4
Implement the Plan

30. Three Rs of Money
Reality
Responsibility
Restraint

31. Monitor and Modify the Plan
Step 5
Monitor and Modify
the Plan

32. Monitor and Modify Are your existing goals still worth doing?
Is there a new goal to add to your list?
Is there an existing goal you want to drop or change?

33. ACTION STEPS Page 14 Write down two BIG GOALS
Write the first and second step for each goal

34. Questions To Answer:
What are the five steps in the personal financial process?
How do you set “SMART” goals?
How do your choices affect your money?
How can money help you live a satisfying life?

35. 2001 National Endowment for Financial Education, Greenwood Village, Colorado, 80111