Family Economics and Financial Education
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Transcript of Family Economics and Financial Education
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 1
Funded 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
7.17.2.G1
Family Economics and Financial Education
VALUES, NEEDS, WANTS, AND GOAL SETTING
ESSENTIALS
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 2
Funded 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
7.17.2.G1
WHAT IS A VALUE?
•A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual
Family
Good health
Financial security A successful
and/or satisfying career
Honesty
Helping others
Religious commitment
Education
What are examples of values?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 3
Funded 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
7.17.2.G1
VALUES
Religious affiliations
Family
Teachers
Friends
Law
MediaWork/Career
Life Experiences
Are your values the same as the person sitting next to you?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 4
Funded 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
7.17.2.G1
VALUES
Values guide a person’s needs, wants, and goals
Values, needs, wants, and goals influence a person’s daily decisions
Decisions affect an individual’s financial situation
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 5
Funded 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
7.17.2.G1
IMAGINE
What would the world be like if everyone had
the same values? Questions 1 and 2
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 6
Funded 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
7.17.2.G1
NEEDS vs. WANTS
A need is something thought to be a
necessity or essential items required for life
A need is something thought to be a
necessity or essential items required for life
Examples of needs:•Food•Water•Shelter
Examples of wants:•Car stereo•MP3 player•Designer clothes
A want is something unnecessary but
desired or items which increase the quality of
living
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 7
Funded 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
7.17.2.G1
NEED OR WANT?YOU DECIDE!
Questions 3 and 4
•Clothing
•Going to the movies
•Going out to eat
•A place to live
•A car/truck
• A computer• Owning an MP3
player• Cell phone• Owning a vacation
home• Food
Everyone has different interpretations of needs and wants.
This is based on…their personal values!
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 8
Funded 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
7.17.2.G1
WHAT IS A GOAL?
A goal is defined as the end result of something a person intends to acquire,
achieve, do, reach, or accomplish sometime in the near or distant future
Identifying goals makes decision making easier
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 9
Funded 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
7.17.2.G1HOW DO VALUES, NEEDS, WANTS AND GOALS RELATE TO FINANCIAL DECISIONS?
Decisions FinancialDecisions
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 10
Funded 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
7.17.2.G1
TYPES OF GOALS
Goals
Goals Questions
5-7
Financial goals are specific objectives to be accomplished through financial planning
Education goals enable individuals to prepare for future success in the workplace
Long-term goals are specified as more than one year
Short-term goals are specified as less than one year
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 11
Funded 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
7.17.2.G1
SMART GOALS
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
Financial and education goals should be SMART goals
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 12
Funded 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
7.17.2.G1
SMART EDUCATIONAL GOAL• Goal – “I want to attend college.”• SMART goal –
– Specific – I want to attend a four year college– Measurable – Because I want to attend a four year college, I will
earn a B in algebra– Attainable – Because I want to attend a four year college, I will
earn a B in algebra this semester– Realistic – 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
– Time Bound – 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 in high school
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 13
Funded 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
7.17.2.G1
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.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 14
Funded 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
7.17.2.G1
WHAT IS MISSING?
• Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals
• Financial Goal #1– I plan to save $5,000 for college living expenses in four
years.
Attainable
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 15
Funded 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
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #2– I plan to save for a new computer by saving $150
each month for one year.
Measurable
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 16
Funded 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
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #3– I plan to save $2,500 by saving $105 each month
for 2 years.
Specific
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 17
Funded 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
7.17.2.G1
WHAT IS MISSING?
• Financial Goal #4 – I plan to save $1,500 to buy a used car by saving
$75 from each paycheck.
Time Bound
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 18
Funded 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
7.17.2.G1
WHAT IS MISSING?
• 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.
Realistic
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 19
Funded 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
7.17.2.G1
WHY IS IMPORTANT TO WRITE SMART GOALS?
Practice writing SMART goals!
Question8
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 20
Funded 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
7.17.2.G1
SUMMARY
A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individualA need is something thought to be a necessity or essential items required for life. Examples include food, water, and shelterA want is something unnecessary but desired or items which increase the quality of livingA goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish
Values
Wants
Goals
Needs
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 21
Funded 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
7.17.2.G1
SUMMARY
Values guide a person’s needs, wants and goals
This influences a person’s daily decisions, which may affect their financial situation
• Goals should be written down as SMART goals– Specific, measurable, attainable, realistic, and time
bound