1. Saving and Goal Setting

2. In This Lesson: 1. Recognize the importance of goal-setting. 2. Define short term, medium term, and long-term goals. 3. Develop a SMART goal. 4. Identify the opportunity cost of saving.

3. Planning For Spring Break ACTIVITY 6-12 months 3 months 10 days 1 day Research where you want to go Save money for trip Make a budget for your trip Purchase airline, bus or train tickets Make hotel reservations Take care of pets (or who is going to house sit) Pack your clothes Tell friends and family where you are going Request time off from work or school Clean out refrigerator Mow yard Plan activities for your vacation

4. Types of Goals Long Term Savings goals- require 3 years or more to achieve. Short Term Savings Goals- can be achieved in fewer than two months. Medium Term Saving Goals- may take from 2 months to 3 years to achieve.

5. Why do you save money? To purchase things you want. To purchase things you need. To pay bills.

6. Opportunity Cost Review Because time, space and money are limited. People can not have everything they want; they have to make choices. Every choice involves an opportunity cost-the next best alternative. Any decision that involves a choice between two or more options has an opportunity cost.

7. Activity #2: SMART Goals S pecific M easurable A ttainable R ealistic T ime Oriented

8. Activity #2: SMART Goals I am going to buy a car by December 2013 that costs $3,600 by saving $300 per month for 36 months. My SMART Goal:

9. What we have learned…. 1. How to recognize the importance of goal setting. 2. We defined short-term, medium term, and long-term goals. 3. Develop SMART goals. 4. How to identify the opportunity cost of saving.