1 17 3 G 1 Setting Financial Goals

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

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

1. 17. 3. G 1 Financial Planning Financial planning- A tool used to achieve

1. 17. 3. G 1 Financial Planning Financial planning- A tool used to achieve financial success based upon the development and implementation of financial goals © Family Economics & Financial Education – Revised April 2011 –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 Goals Goal – the end result of something a

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 2011 –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 Short-term and Long-term Goals Goal Short-term goalsspecified as less

1. 17. 3. G 1 Short-term and Long-term Goals Goal Short-term goalsspecified as less than one year Underline events in your letter that can be achieved with a shortterm goal Long-term goals specified as more than one year Put parentheses around events in your letter that can be achieved with a long-term goal © Family Economics & Financial Education – Revised April 2011 –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

The Importance of Goal Writing p A study in 1. 17. 3. G 1

The Importance of Goal Writing p A study in 1. 17. 3. G 1 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 2011 –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

1. 17. 3. G 1 And what about that 3% p Ten years later….

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 Why is goal setting important? © Family Economics & Financial Education – Revised April 2011 –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 SMART Goals Specific Measurable State exactly what is to

1. 17. 3. G 1 SMART Goals Specific Measurable State exactly what is to be done Include how the goal can be measured Attainable Determine steps to reach the goal Realistic Time Bound Do not set goals for something unrealistic © Family Economics & Financial Education – Revised April 2011 –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 State when the goal will be met

1. 17. 3. G 1 SMART Financial Goals Specific • State exactly what is

1. 17. 3. G 1 SMART Financial Goals Specific • State exactly what is to be done with the money involved Measurable • Write the exact dollar amount the goal is for Attainable • Determine how it can be reached (often determined by a budget) Realistic Time Bound • Do not set goals for something unattainable or out of reach • Specifically state when the goal needs to be reached © Family Economics & Financial Education – Revised April 2011 –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

1. 17. 3. G 1 SMART Financial Goal Specific Measurable Attainable Realistic Time Bound

1. 17. 3. G 1 SMART Financial Goal Specific Measurable Attainable Realistic Time Bound I want to buy a new car I plan to save for a down payment on a new car I plan to save $5, 000 for a down payment on a new car by saving $200 from every paycheck It is realistic to save $200 from each paycheck because I usually waste the money on unnecessary items instead of saving it 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 2011 –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

1. 17. 3. G 1 SMART Education Goals Specific • State exactly what is to be done with the education aspect involved Measurable • Write the exact grade or class that the goal is for Attainable • Determine how it can be reached, which is often determined by academic work Realistic • Do not set goal for something unattainable or out of reach Time Bound • Specifically state when the goal needs to be reached © Family Economics & Financial Education – Revised April 2011 –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 Specific Measurable Attainable Realistic Time Bound

1. 17. 3. G 1 SMART Education Goal Specific Measurable Attainable Realistic Time Bound I want to attend college I want to attend a four year college 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 © Family Economics & Financial Education – Revised April 2011 –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 What is Missing? p Find the missing element (specific,

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 Goal #1 n I plan to save $5, 000 for college living expenses in four years. © Family Economics & Financial Education – Revised April 2011 –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 What is Missing? p Financial Goal #1 Answer: Attainable

1. 17. 3. G 1 What is Missing? p Financial Goal #1 Answer: Attainable © Family Economics & Financial Education – Revised April 2011 –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,

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 Goal #2 n I plan to save for a new computer by saving $150 each month for one year. © Family Economics & Financial Education – Revised April 2011 –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 #2 Answer: Measurable

1. 17. 3. G 1 What is Missing? p Financial Goal #2 Answer: Measurable © Family Economics & Financial Education – Revised April 2011 –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,

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 Goal #3 n I plan to save $2, 500 by saving $105 each month for 2 years. © Family Economics & Financial Education – Revised April 2011 –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 # 3 Answer:

1. 17. 3. G 1 What is Missing? p Financial Goal # 3 Answer: Specific © Family Economics & Financial Education – Revised April 2011 –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,

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 Goal #4 n I plan to save $1, 500 to buy a used car by saving $75 from each paycheck. © Family Economics & Financial Education – Revised April 2011 –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 # 4 Answer:

1. 17. 3. G 1 What is Missing? p Financial Goal # 4 Answer: Time Bound © Family Economics & Financial Education – Revised April 2011 –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,

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 Goal #5 n 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 2011 –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 # 5 Answer:

1. 17. 3. G 1 What is Missing? p Financial Goal # 5 Answer: Realistic © Family Economics & Financial Education – Revised April 2011 –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 Summary What is a goal? Why is goal setting

1. 17. 3. G 1 Summary What is a goal? Why is goal setting important? What are the elements of a SMART goal? © Family Economics & Financial Education – Revised April 2011 –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 Practice Writing Smart Goals 1. Get into groups of

1. 17. 3. G 1 Practice Writing Smart Goals 1. Get into groups of 2 -3 2. Write one SMART education goal and one SMART financial goal for yourself 3. Share your goals with your group and have your group provide constructive feedback to ensure goals have all of the elements of well written goals 4. Based upon feedback from your group, edit your goals © Family Economics & Financial Education – Revised April 2011 –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