Most people dont plan to fail They simply
- Slides: 8
“Most people don’t plan to fail… They simply fail to plan!” Objective: Define Financial Planning Understanding the importance of setting goals and to modify and monitor Examine the value of having a plan to use money Define SMART Goals Describe decision making processes Do Now: Let’s begin with the end in mind…… Where do you see yourself in 10 yrs?
Financial Planning (PG 3) A process of setting goals, developing a plan to achieve them, and putting the plan into action. Have you heard of the terms “in the red” or “in the black” in regards to finance? “In the black” = making money “In the red” = losing money
The Five-Step Financial Planning Process
S-M-A-R-T GOAL CRITERIA Specific Measurable Attainable Realistic Time-Limited
SMART Goals Specific……. . Measurable… Attainable…. . Realistic……. Time-Limited. . “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. ”
Term Goals • SHORT-TERM GOALS – Within three months • INTERMEDIATE-TERM GOALS – Three months to a year • LONG-TERM GOALS – More than a year Let’s close lesson with watching a video clip
Age Factors That Affect Decision Making Needs Wants What about you? Family Time Money Values 1 -J Habits Culture Society Motivation Education Attitudes
Decision Making and Financial Planning The Decision- Making The Financial Process Planning Process Identify Your Goal Set Goals Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results 1 -L Analyze Information Create a Plan Implement the Plan Monitor & Modify the Plan