1 17 3 G 1 Setting Financial Goals

1. 17. 3. G 1 Setting Financial Goals “Take Charge of Your Finances” 1. 17. 3

1. 17. 3. G 1 Shake Out My Future Activity p p p Complete the Shake Out My Future worksheet 1. 17. 3. A 1 For each category, roll the die to determine what your final outcome would be Roll the die and cross out the number that is rolled n p p For example: In the housing category if you roll a 2 you would cross out the word “Mansion” Continue until you have rolled the die enough times to have only one option remaining. This will be your final outcome for that category Record your final outcome in the box next to the category and answer the reflection question © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 Letter p Write a letter to yourself about what you envision your life will be like in five years. n Examples of items you may write about include: p p Education Career Family Money © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 Goals Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Financial goals – specific objectives to be accomplished through financial planning Education goals enable individuals to prepare for future success in the workplace © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 Goals p Short-term goals – specified as less than one year n I plan to raise my English grade from a C+ to a B by the end of this academic year by asking my older brother to peer review my research paper prior to turning it in. p p Underline events in your letter that can be achieved with a short-term goal. Long-term goals – specified as more than one year n By the end of the next academic year I would like to purchase my first car by saving $50 per month from my part time job. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

The Importance of Goal Writing p. A study in What They Don’t Teach You at Harvard Business School by Mark Mc. Cormack p 1979 - Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them? " 3% had written goals and plans n 13% percent had goals, but they were not in writing n 84% percent had no specific goals at all n © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1. 17. 3. G 1

1. 17. 3. G 1 And what about that 3% p Ten years later…. the 3% that had written goals and plans were earning, on average, ten times as much as the other 97 percent put together. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 SMART Goals Specific State exactly what is to be done Measurabl e Include how the goal can be measured Attainable Determine steps to reach the goal Realistic Do not set goals for something unrealistic © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Time Bound State when the goal will be met

1. 17. 3. G 1 Education Goals p Help individuals prepare for success in the workplace n Examples include: p Earning an A on an upcoming quiz p Attending college p Participating in extra-curricular activities Include both short-term and long-term goals n Provide guidance and direction n Enable individuals to reach financial goals n © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 SMART Education Goals Specific • State exactly what is to be done with the education aspect involved Measurable Realistic • Write the exact grade or class that the goal is for • Determine how it can be reached, which is often determined by academic work • Do not set goal for something unattainable or unrealistic Time Bound • Specifically state when the goal needs to be reached Attainable © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 SMART Education Goal p p Goal – “I want to attend college. ” SMART goal – n n n 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 © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 SMART Financial Goals Specific Measurable Attainable Realistic Time Bound • State exactly what is to be done with the money involved • Write the exact dollar amount the goal is for • Determine how it can be reached, which is often determined by the individual’s budget • Do not set goal for something unattainable or unrealistic • Specifically state when the goal needs to be reached © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 SMART Financial Goal p p Goal – I want to buy a new car SMART goal – n n n 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. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals p Financial n Goal #1 I plan to save $5, 000 for college living expenses in four years. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Financial Goal #1 Answer: Attainable © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals p Financial n Goal #2 I plan to save for a new computer by saving $150 each month for one year. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Financial Goal #2 Answer: Measurable © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals p Financial n Goal #3 I plan to save $2, 500 by saving $105 each month for 2 years. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Financial Goal # 3 Answer: Specific © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals p Financial n Goal #4 I plan to save $1, 500 to buy a used car by saving $75 from each paycheck © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Financial Goal # 4 Answer: Time Bound © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals p Financial n Goal #5 I plan to save $2, 000 to pay for a new computer by saving my whole paycheck for the next 6 months © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 What is Missing? p Financial Goal # 5 Answer: Realistic © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 Conclusion p Review the following: n Goals p Financial goals p Short-Term goals p Long-Term goals p SMART goals p Questions? © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 17. 3. G 1 Practice Writing Smart Goals p p Get into groups of 2 -3 to practice writing a group SMART education and financial goal on your Goal Setting note taking guide 1. 17. 3. L 1. Write one SMART education goal and one SMART financial goal for yourself on your Goal Setting note taking guide 1. 17. 3. L 1. Share your goals with your group. Have your group provide constructive feedback to ensure goals have all of the elements of well written goals. Based upon feedback from your group, edit your goals. © Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona