PERSONAL FINANCE

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PERSONAL FINANCE

• Mr. Mark Harris

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Exploring Values, Wants, and Needs
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OBJECTIVES

• Define value.
• Explore personal values.
• Identify the difference between a need and a
  want.
• Understand how personal financial decisions are
  influenced by an individuals interpretation of
  needs and wants.
• Define goals.
• Differentiate between short-term and long-term
  goals.
• Establish SMART goals for participation in this
  class this semester.

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VALUES

• Something that is desirable, worthwhile, and
  important
• Influenced by family, friends, teachers, coaches,
  television, and movies
• Each person has different values which guide
  his/her daily decisions

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WHAT ARE YOUR VALUES?

• Name three values that are important to you.

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BEST FRIEND ADVERTISEMENT

• Write an advertisement for a best friend
• Include at least five qualities or
  characteristics you desire or value in a friend
• Describe why those qualities are important to
  you.

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NEEDS VS. WANTS

• Need - something necessary or required for life
• Name some needs???

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How Much Money Does A Person Need?

• Families in India earn 1.00 to 2.00 a day.
• Could your family live off 1.00 to 2.00 a day?
• What do you think families in India think they
  NEED?

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How Do Values Influence Needs?

• You need shelter, but do you NEED a mansion?
• You need clothes, but do you NEED designer
  clothes?
• WHAT DO YOU NEED?

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NEEDS VS. WANTS

• Want - something unnecessary but desired
• May increase the quality of living or make a
  person happier

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How Do Values Influence Wants?

• If being popular or having all of the newest
  gadgets is valued, a person may have a lot of
  wants.
• WHAT DO YOU WANT?

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A WANT OR A NEED? YOU DECIDE

• Food
• I-Pod
• Cell Phone
• Clothes

• Car
• Nike Sneakers
• Hot Tub
• Computer

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THOUGHT PROVOKING?

• How do values influence how people spend money?
• Example If an individual values helping others,
  he may decide to give money to a church or other
  charitable groups

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THOUGHT PROVOKING?

• How do needs and wants influence how people spend
  money?

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REVIEW. . .

• What is a value?
• Who influences values?
• What is a want?
• What is a need?
• How do values, wants, and needs influence
  financial decisions?

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GOALS
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• A goal is defined as the end result of something
  a person intends to acquire, achieve, do, reach,
  or accomplish sometime in the near or distant
  future.

Identifying goals makes decision making easier.
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Financial goals are specific objectives to be
accomplished through financial planning
Education goals enable individuals to prepare for
future success in the workplace
Short-term goals are specified as less than one
year
Long-term goals are specified as more than one
year
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(No Transcript)
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SMART Educational Goals
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Activity for Review

• Work with your partner on the activities of
  Chapter 1 of your NEFE workbook.