NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
ObOb
““Your Financial Plan: Where It All Begins’Your Financial Plan: Where It All Begins’
Objective – Apply knowledge of decision making to
financial issues
Warm-up – Work on summary questions – due Thursday
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
“Make a Plan Sam”
Are you Doomed for Failure
or Destined for Success
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
““Most people don’t plan to fail…Most people don’t plan to fail…They simply fail to plan!”They simply fail to plan!”
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
The Five-Step The Five-Step Financial Financial Planning Planning ProcessProcess
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Sample Wants and NeedsSample Wants and NeedsNEEDSNEEDS• Food for breakfastFood for breakfast• Clothes for schoolClothes for school• Transportation to Transportation to
school or workschool or work• ____________________________• ____________________________
WANTSWANTS• An iPODAn iPOD• DVD PlayersDVD Players• Cell PhoneCell Phone• Hot CarHot Car• ____________________________• ____________________________
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
ValuesValues• Getting a good educationGetting a good education• Religious faith or beliefsReligious faith or beliefs• Social causesSocial causes• Handling money responsiblyHandling money responsibly• Friendships / The people I hang out Friendships / The people I hang out
withwith• ________________________________________________________• ________________________________________________________
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Term GoalsTerm Goals• SHORT-TERM GOALSSHORT-TERM GOALS
–Within three monthsWithin three months• INTERMEDIATE-TERM GOALSINTERMEDIATE-TERM GOALS
–Three months to a yearThree months to a year• LONG-TERM GOALSLONG-TERM GOALS
–More than a yearMore than a year
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Delayed GratificationDelayed Gratification• Saving money over time to make a major Saving money over time to make a major
purchase.purchase.• Waiting to buy a new product until the Waiting to buy a new product until the
price goes down.price goes down.• Waiting to see the latest movie until the Waiting to see the latest movie until the
crowds get smaller and the lines shorter.crowds get smaller and the lines shorter.• ____________________________________________________________________
____________________________________________________________________
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
S-M-A-R-TS-M-A-R-T GOAL CRITERIA GOAL CRITERIASSpecificpecific
MMeasurableeasurable
TTime-Limitedime-Limited
RRealisticealistic
AAttainablettainable
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
SMARTSMART Goals GoalsSSpecific……..pecific……..
MMeasurable…easurable…
TTime-Limited..ime-Limited..
RRealistic…….ealistic…….
AAttainable…..ttainable…..
“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.”
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What about What about you?you?
Factors That AffectFactors That AffectDecision MakingDecision Making
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WantsWants
FamilyFamily
ValuesValues
TimeTimeMoneyMoney
NeedsNeeds
HabitsHabits
MotivationMotivation
EducationEducation
AgeAge
AttitudesAttitudes
SocietySocietyCultureCulture
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Show me the $$
• Budget Busters
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
EvaluateEvaluateResultsResults
Decision-Making ProcessDecision-Making Process
Make a DecisionMake a Decision
Identify YourIdentify YourGoalGoal
Weigh ProsWeigh Prosand Consand Cons
EstablishEstablishCriteriaCriteria
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The Decision- The Decision- Making ProcessMaking Process
EvaluateEvaluateResultsResults
Make a DecisionMake a Decision
Identify YourIdentify YourGoalGoal
Weigh Pros Weigh Pros and Consand Cons
EstablishEstablishCriteriaCriteria
Monitor & ModifyMonitor & Modifythe Planthe Plan
Implement Implement the Planthe Plan
Set GoalsSet Goals
Create a PlanCreate a Plan
AnalyzeAnalyzeInformationInformation
The Financial The Financial Planning ProcessPlanning Process
Decision Making and Financial PlanningDecision Making and Financial Planning
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All begins
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Spending Spending RecordRecord
$35.00$35.00
$5.00$5.00
$15.00$15.00
$6.00$6.00$4.0$4.0
00$7.00$7.00
$8.00$8.00$15.00$15.00
$40.00$40.00$55.00$55.00$15.00$15.00
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NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit One - Your Financial Plan: Where It All Begins
Unit 1: Your Financial Plan:Unit 1: Your Financial Plan:Where it All BeginsWhere it All Begins