Saving and Goal Setting

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Saving and Goal Setting
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In This Lesson

• Recognize the importance of goal-setting.
• Define short term, medium term, and long-term
  goals.
• Develop a SMART goal.
• Identify the opportunity cost of saving.

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Planning For Spring Break
ACTIVITY 6-12 months 3 months 10 days 1 day
Research where you want to go        
Save money for trip        
Make a budget for your trip        
Purchase airline, bus or train tickets        
Make hotel reservations        
Take care of pets (or who is going to house sit)        
Pack your clothes        
Tell friends and family where you are going        
Request time off from work or school        
Clean out refrigerator        
Mow yard        
Plan activities for your vacation        
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Types of Goals
Long Term Savings goals- require 3 years or more
to achieve.
Medium Term Saving Goals- may take from 2 months
to 3 years to achieve.
Short Term Savings Goals-can be achieved in
fewer than two months.
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Why do you save money?

• To purchase things you want.
• To purchase things you need.
• To pay bills.

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Opportunity Cost Review

• Because time, space and money are limited. People
  can not have everything they want they have to
  make choices.
• Every choice involves an opportunity cost-the
  next best alternative.
• Any decision that involves a choice between two
  or more options has an opportunity cost.

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Activity 2 SMART Goals

• Specific
• Measurable
• Attainable
• Realistic
• Time Oriented

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Activity 2 SMART Goals
My SMART Goal
I am going to buy a car by December 2013 that
costs 3,600 by saving 300 per month for 36
months.
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What we have learned.

1. How to recognize the importance of goal setting.
2. We defined short-term, medium term, and long-term
   goals.
3. Develop SMART goals.
4. How to identify the opportunity cost of saving.