Objective – Apply knowledge of decision making to financial issues

NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins

ObOb

““Your Financial Plan: Where It All Begins’Your Financial Plan: Where It All Begins’

Objective – Apply knowledge of decision making to

financial issues

Warm-up – Work on summary questions – due Thursday


“Make a Plan Sam”

Are you Doomed for Failure

or Destined for Success


““Most people don’t plan to fail…Most people don’t plan to fail…They simply fail to plan!”They simply fail to plan!”

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The Five-Step The Five-Step Financial Financial Planning Planning ProcessProcess

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Sample Wants and NeedsSample Wants and NeedsNEEDSNEEDS• Food for breakfastFood for breakfast• Clothes for schoolClothes for school• Transportation to Transportation to

school or workschool or work• ____________________________• ____________________________

WANTSWANTS• An iPODAn iPOD• DVD PlayersDVD Players• Cell PhoneCell Phone• Hot CarHot Car• ____________________________• ____________________________

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ValuesValues• Getting a good educationGetting a good education• Religious faith or beliefsReligious faith or beliefs• Social causesSocial causes• Handling money responsiblyHandling money responsibly• Friendships / The people I hang out Friendships / The people I hang out

withwith• ________________________________________________________• ________________________________________________________

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Term GoalsTerm Goals• SHORT-TERM GOALSSHORT-TERM GOALS

–Within three monthsWithin three months• INTERMEDIATE-TERM GOALSINTERMEDIATE-TERM GOALS

–Three months to a yearThree months to a year• LONG-TERM GOALSLONG-TERM GOALS

–More than a yearMore than a year

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Delayed GratificationDelayed Gratification• Saving money over time to make a major Saving money over time to make a major

purchase.purchase.• Waiting to buy a new product until the Waiting to buy a new product until the

price goes down.price goes down.• Waiting to see the latest movie until the Waiting to see the latest movie until the

crowds get smaller and the lines shorter.crowds get smaller and the lines shorter.• ____________________________________________________________________

____________________________________________________________________

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S-M-A-R-TS-M-A-R-T GOAL CRITERIA GOAL CRITERIASSpecificpecific

MMeasurableeasurable

TTime-Limitedime-Limited

RRealisticealistic

AAttainablettainable

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SMARTSMART Goals GoalsSSpecific……..pecific……..

MMeasurable…easurable…

TTime-Limited..ime-Limited..

RRealistic…….ealistic…….

AAttainable…..ttainable…..

“Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C.”

“$300 through fundraising, $50 from birthday money, save $25 a week.”

“If I stick to my plan, I’ll have the money when I need it.”

“I still have enough money to live on while I work toward this goal.”

“I need to have all the money by 6 months from now.”

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What about What about you?you?

Factors That AffectFactors That AffectDecision MakingDecision Making

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WantsWants

FamilyFamily

ValuesValues

TimeTimeMoneyMoney

NeedsNeeds

HabitsHabits

MotivationMotivation

EducationEducation

AgeAge

AttitudesAttitudes

SocietySocietyCultureCulture


Show me the $$

• Budget Busters


EvaluateEvaluateResultsResults

Decision-Making ProcessDecision-Making Process

Make a DecisionMake a Decision

Identify YourIdentify YourGoalGoal

Weigh ProsWeigh Prosand Consand Cons

EstablishEstablishCriteriaCriteria

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The Decision- The Decision- Making ProcessMaking Process

EvaluateEvaluateResultsResults

Make a DecisionMake a Decision

Identify YourIdentify YourGoalGoal

Weigh Pros Weigh Pros and Consand Cons

EstablishEstablishCriteriaCriteria

Monitor & ModifyMonitor & Modifythe Planthe Plan

Implement Implement the Planthe Plan

Set GoalsSet Goals

Create a PlanCreate a Plan

AnalyzeAnalyzeInformationInformation

The Financial The Financial Planning ProcessPlanning Process

Decision Making and Financial PlanningDecision Making and Financial Planning

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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All begins


Spending Spending RecordRecord

$35.00$35.00

$5.00$5.00

$15.00$15.00

$6.00$6.00$4.0$4.0

00$7.00$7.00

$8.00$8.00$15.00$15.00

$40.00$40.00$55.00$55.00$15.00$15.00

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Unit 1: Your Financial Plan:Unit 1: Your Financial Plan:Where it All BeginsWhere it All Begins

Objective – Apply knowledge of decision making to financial issues

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