Most people dont plan to fail They simply

“Most people don’t plan to fail… They simply fail to plan!” 1 -A

The Five-Step Financial Planning Process 1 -B

Sample Wants and Needs NEEDS • Food for breakfast • Clothes for school • Transportation to school or work • ______________ 1 -C WANTS • An i. POD • DVD Players • Cell Phone • Hot Car • ______________

On a separate sheet Write down 5 things that you’ve spent money on lately and label them with an N or a W.

Values • • 1 -D Getting a good education Religious faith or beliefs Social causes Handling money responsibly Friendships / The people I hang out with ____________________________

At the bottom of the same sheet. List 3 – 5 things that you value or that mean something special to you. Make sure your name is on the paper.

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

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

S-M-A-R-T GOAL CRITERIA Specific Measurable Attainable Realistic Time-Limited 1 -G

SMART Goals Specific State exactly what is to be done Measurable Include how the goal can be measured Attainable Determine steps to reach the goal Realistic Do not set goals for something unrealistic Time Bound State when the goal will be met

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

SMART Financial Goal • Goal – I want to buy a new car • SMART goal – – 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.

What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #1 – I plan to save $5, 000 for college living expenses in four years.

What is Missing? • Financial Goal #1 Answer: Attainable

What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #2 – I plan to save for a new computer by saving $150 each month for one year.

What is Missing? • Financial Goal #2 Answer: Measurable

What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #3 – I plan to save $2, 500 by saving $105 each month for 2 years.

What is Missing? • Financial Goal # 3 Answer: Specific

What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #4 – I plan to save $1, 500 to buy a used car by saving $75 from each paycheck

What is Missing? • Financial Goal # 4 Answer: Time Bound

What is Missing? • Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals • Financial Goal #5 – I plan to save $2, 000 to pay for a new computer by saving my whole paycheck for the next 6 months

What is Missing? • Financial Goal # 5 Answer: Realistic

Step 2 Analyze Information on how to save

Spending Record 1 -I $35. 00 $6. 00 $4. 00 $7. 00 $5. 00 $8. 00 $15. 00 $55. 00 $15. 00 $40. 00

Step 3 Create Your Plan

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 Process Identify Your Goal Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results 1 -K

Step 4 Implement Your Plan

REALITY RESPONSIBILITY RESTRAINT 1 -N

Step 5 Monitor and Modify Your Plan