Family Economics and Financial Education. VALUES, NEEDS, WANTS, AND GOAL SETTING ESSENTIALS. WHAT IS A VALUE?. A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual. What are examples of values?. Financial security. Helping others. - PowerPoint PPT Presentation
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Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS A VALUE?
•A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
VALUES
Religious affiliations
Family
Teachers
Friends
Law
MediaWork/Career
Life Experiences
Are your values the same as the person sitting next to you?
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
VALUES
Values guide a person’s needs, wants, and goals
Values, needs, wants, and goals influence a person’s daily decisions
Decisions affect an individual’s financial situation
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
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NEEDS vs. WANTS
A need is something thought to be a
necessity or essential items required for life
A need is something thought to be a
necessity or essential items required for life
Examples of needs:•Food•Water•Shelter
Examples of wants:•Car stereo•MP3 player•Designer clothes
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
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NEED OR WANT?YOU DECIDE!
Questions 3 and 4
•Clothing
•Going to the movies
•Going out to eat
•A place to live
•A car/truck
• A computer• Owning an MP3
player• Cell phone• Owning a vacation
home• Food
Everyone has different interpretations of needs and wants.
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS A GOAL?
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
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1HOW DO VALUES, NEEDS, WANTS AND GOALS RELATE TO FINANCIAL DECISIONS?
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
TYPES OF GOALS
Goals
Goals Questions
5-7
Financial goals are specific objectives to be accomplished through financial planning
Education goals enable individuals to prepare for future success in the workplace
Long-term goals are specified as more than one year
Short-term goals are specified as less than one year
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
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SMART GOALS
SMART Goals
Specific
State exactly
what is to be done
Measurable
Include how the
goal can be measured
Attainable
Determine steps to
reach the goal
Realistic
Do not set goals for
something unrealistic
Time Bound
State when the goal
will be met
Financial and education goals should be SMART goals
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
– Specific – I want to attend a four year college– Measurable – Because I want to attend a four year college, I will
earn a B in algebra– Attainable – Because I want to attend a four year college, I will
earn a B in algebra this semester– Realistic – 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
– Time Bound – 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 in high school
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
SMART FINANCIAL GOAL
• Goal – I want to buy a new car • SMART goal –
– Specific – I plan to save for a down payment on a new car– Measurable – I plan to save $5,000 for a down payment on a new
car– Attainable – I plan to save $5,000 for a down payment on a new
car by saving $200 from every paycheck– Realistic – It is realistic to save $200 from each paycheck for a
down payment on a car because I usually waste the money on unnecessary items instead of saving it
– Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
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WHAT IS MISSING?
• Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals
• Financial Goal #1– I plan to save $5,000 for college living expenses in four
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #2– I plan to save for a new computer by saving $150
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #3– I plan to save $2,500 by saving $105 each month
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #4 – I plan to save $1,500 to buy a used car by saving
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #5 – I plan to save $2,000 to pay for a new computer by
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
SUMMARY
A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individualA need is something thought to be a necessity or essential items required for life. Examples include food, water, and shelterA want is something unnecessary but desired or items which increase the quality of livingA goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.17.2.G1
SUMMARY
Values guide a person’s needs, wants and goals
This influences a person’s daily decisions, which may affect their financial situation
• Goals should be written down as SMART goals– Specific, measurable, attainable, realistic, and time