Unit 1 Your Financial Plan:

1
Unit 1 - Your Financial Plan Where It All Begins
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What We Will Cover

• Examine why its important to have a plan for
  your money
• Know what SMART goals are and how to create them
• Analyze how you get and spend money
• Use the decision-making process to create your
  financial goal
• Identify guidelines to implement your financial
  plan
• Learn how to monitor and make changes to your
  financial plan

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What Do You Think?True or False

• Teens get most of their money from part-time
  jobs.
• Most teens who are 18 or19 years old have a
  checking account.
• Ninety percent of high school students rely on
  their parents for information about money.
• On average, American teens spend more than 10
  billion a year.

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Most people dont plan to failThey simply fail
to plan!
1-A
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Why have a plan for your money?

• People who have it all didnt get there by
  accident.
• Allows you to live comfortably and buy nice
  things without guilt or stress.
• It can be accomplished in five pretty simple
  steps!

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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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Use the Step-Down Principle
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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?
Time
Society
Family
Culture
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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What We Covered

• Why its important to have a plan for your money
• What SMART goals are and how to create them
• Analyze how you get and spend money
• Use the decision-making process to create your
  financial goal
• Identify guidelines to implement your financial
  plan
• How to monitor and make changes to your financial
  plan

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Unit 1 Your Financial Plan Where it All Begins