Unit 1 - Your Financial Plan:

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Unit 1 - Your Financial Plan Where It All Begins
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Most people dont plan to failThey simply fail
to plan!
1-A
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The Five-Step Financial Planning Process
1-B
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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
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Values

• Getting a good education
• Religious faith or beliefs
• Social causes
• Handling money responsibly
• Friendships / The people I hang out with
• ____________________________
• ____________________________

1-D
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Term Goals

• SHORT-TERM GOALS
• Within three months
• INTERMEDIATE-TERM GOALS
• Three months to a year
• LONG-TERM GOALS
• More than a year

1-E
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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
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S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-Limited
1-G
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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, Ill 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
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Spending Record
6.00
35.00
4.00
7.00
5.00
8.00
15.00
15.00
40.00
55.00
15.00
1-I
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Factors That AffectDecision Making
Age
Needs
Wants
What about you?
Family
Culture
Time
Society
Motivation
Money
Values
Education
Habits
Attitudes
1-J
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Decision-Making Process
Identify Your Goal
Establish Criteria
Weigh Pros and Cons
Make a Decision
Evaluate Results
1-K
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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 Financial Planning Process
1-L
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Know What You Want
Identify Your Goal
Decide where to eat
Establish Criteria
1.
2.
3.
1-M
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REALITY
RESPONSIBILITY
RESTRAINT
1-N
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SAVING
SPENDING
SHARING
1-O
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Unit 1 Your Financial Plan Where it All Begins