2.1.3.G1 Financial Decisions Advanced Level. 2.1.3.G1 © Take Charge Today – August 2013 –...
-
Upload
jade-blake -
Category
Documents
-
view
216 -
download
0
Transcript of 2.1.3.G1 Financial Decisions Advanced Level. 2.1.3.G1 © Take Charge Today – August 2013 –...
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Upon Completion of this lesson, participates will be able to:
• Analyze how values, needs and wants affect individual financial decisions.
• Apply the concepts of trade-offs and opportunity costs to decision making.
• Recognize the impact of individual values on overall well-being.
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What contributes to the decisions you make?
Values
Needs
Wants
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What is a Value?
Value - a fundamental belief or practice about what is desirable, worthwhile, and
important to an individual
What do you value?
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Everyone has different values
Family
Financial Security
?
Education
Helping others
Honesty
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What influences your values?
FamilyFriends/
Peers Teachers
Culture Media ?
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Needs and Wants
Needs – goods or services that
are required for survival
Wants– the desire for goods and
services that can increase our quality
of life but are not absolutely
necessary for our survival
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What are your needs and wants?
Move towards the arrow indicating whether you feel each item is a need or a want
Needs Wants
Perception of needs versus wants is dependent on personal values
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
• Name brand clothing• A daily soda or coffee
beverage• A personal automobile• Downloading music• A refrigerator• At least three meals per day• Shoes• Watching or participating in
athletic activities• A computer• A warm and safe place to live• A television
What are your needs and wants?
Needs Wants
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Why do needs and wants matter?
Will help you decide what to spend and not spend your money on
Trade-off - giving up one thing for
another
Opportunity cost – the value of the
next best alternative that
must be forgone as a result of a
decision
Use trade-offs and opportunity costs to help you
make these decisions
Is the trade-off to your decision a need or a want? What is the value (opportunity cost) of that trade-off to you?
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Shelbi’s Decisions
Help Shelbi identify her trade-offs and opportunity costs
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Making Financial Decisions
Analyzing trade-offs and
opportunity cost will help you
make decisions
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Why is it important to understand what influences your decisions?
Understanding what influences
your financial decisions
Decisions that create high
well-being
2.1.3.G1
© Take Charge Today – August 2013 – Financial Decisions – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Needs, Wants, and Cupcakes
Icing and decorations represent wants, the extra items that make our lives interesting and enjoyable.
The cake part of a cupcake represents our needs. They must be present and addressed before considering any icing or decorations (wants).
When making spending decisions, consider if your needs are met before spending on any of your wants. What you determine to be a need versus a want will depend on your personal values, just like your preference for different types of cupcakes.