1. Setting Financial Goals
“Take Charge of Your Finances” Advanced Level
Changes to slide 6, 7, 10, 11, 12, 13

2. Financial Planning Financial planning-
A tool used to achieve financial success based upon the development and implementation of
financial goals

3. Goals
Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future
Financial goals – specific objectives to be accomplished through financial planning
Education goals - enable individuals to prepare for future success in the workplace

4. Short-term and Long-term Goals
Short-term goals- specified as less than one year
Long-term goals - specified as more than one year
Underline events in your letter that can be achieved with a short-term goal
Put parentheses around events in your letter that can be achieved with a long-term goal

5. The Importance of Goal Writing
A study in What They Don’t Teach You at Harvard Business School by Mark McCormack
1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?"
3% had written goals and plans
13% percent had goals, but they were not in writing
84% percent had no specific goals at all
New Slide

6. Why is goal setting important?
And what about that 3%
Ten years later….the 3% that had written goals and plans were earning, on average, ten times as much as the other 97 percent put together
Why is goal setting important?
New Slide

7. SMART Goals SMART Goals Specific Measurable Attainable Realistic
Time Bound
State exactly what is to be done
Include how the goal can be measured
Determine steps to reach the goal
Do not set goals for something unrealistic
State when the goal will be met

8. SMART Financial Goals
State exactly what is to be done with the money involved
Specific
Write the exact dollar amount the goal is for
Measurable
Determine how it can be reached (often determined by a budget)
Attainable
Do not set goals for something unattainable or out of reach
Realistic
Specifically state when the goal needs to be reached
Time Bound
Added “financial” to the title and changed the smart art so that it is not the same as the other smart goals slides

9. SMART Financial Goal I want to buy a new car
Specific
Measurable
Attainable
Realistic
Time Bound
I want to buy a new car
I plan to save for a down payment on a new car
I plan to save $5,000 for a down payment on a new car
I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck
Bolded the Smart goal elements
It is realistic to save $200 from each paycheck because I usually waste the money on unnecessary items instead of saving it
I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years

10. SMART Education Goals Specific Measurable Attainable Realistic
State exactly what is to be done with the education aspect involved
Specific
Write the exact grade or class that the goal is for
Measurable
Determine how it can be reached, which is often determined by academic work
Attainable
Do not set goal for something unattainable or out of reach
Realistic
Specifically state when the goal needs to be reached
Time Bound
Added “education” to the title and changed the smart art on this slide so that there are not 3 SMART Goals slide that look exactly the same

11. SMART Education Goal I want to attend college
Specific
Measurable
Attainable
Realistic
Time Bound
I want to attend college
I want to attend a four year college
Because I want to attend a four year college, I will earn a B in algebra
Because I want to attend a four year college, I will earn a B in algebra this semester
Bolded the Smart goal elements
Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam
Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam when I am a junior

12. What is Missing?
Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals
Financial Goal #1
I plan to save $5,000 for college living expenses in four years.

13. What is Missing?
Financial Goal #1 Answer:
Attainable

14. What is Missing?
Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals
Financial Goal #2
I plan to save for a new computer by saving $150 each month for one year.

15. What is Missing?
Financial Goal #2 Answer:
Measurable

16. What is Missing?
Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals
Financial Goal #3
I plan to save $2,500 by saving $105 each month for 2 years.

17. What is Missing?
Financial Goal # 3 Answer:
Specific

18. What is Missing?
Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals
Financial Goal #4
I plan to save $1,500 to buy a used car by saving $75 from each paycheck.

19. What is Missing?
Financial Goal # 4 Answer:
Time Bound

20. What is Missing?
Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals
Financial Goal #5
I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months.

21. What is Missing?
Financial Goal # 5 Answer:
Realistic

22. Summary
What is a goal?
Why is goal setting important?
What are the elements of a SMART goal?

23. Practice Writing Smart Goals1. 2. 3. 4.
Get into groups of 2-3
Write one SMART education goal and one SMART financial goal for yourself
Share your goals with your group and have your group provide constructive feedback to ensure goals have all of the elements of well written goals
Based upon feedback from your group, edit your goals