“Most people don’t plan to fail…They simply fail to plan!”
Objective: Define Financial PlanningUnderstanding the importance of setting goals and to modify and monitorExamine the value of having a plan to use moneyDefine SMART GoalsDescribe decision making processes
Do Now: Let’s begin with the end in mind……
Where do you see yourself in 10yrs?
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 FinancialPlanning Process
S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-Limited
SMART GoalsSpecific…….. “Pay for lodging, transportation, meals for a
5-day trip to Washington, D.C.”
Measurable…
Attainable…..
Realistic…….
Time-Limited..
“$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.”
• SHORT-TERM GOALS –Within three months
• INTERMEDIATE-TERM GOALS–Three months to a year
• LONG-TERM GOALS –More than a year
Term Goals
Let’s close lesson with watching a video clip
What about you?
Factors That AffectDecision Making
1-J
Wants
Family
Values
TimeMoney
Needs
Habits
Motivation
Education
Age
Attitudes
SocietyCulture
The Decision- Making Process
EvaluateResults
Make a Decision
Identify YourGoal
Weigh Pros and Cons
EstablishCriteria
Monitor & Modifythe Plan
Implement the Plan
Set Goals
Create a Plan
AnalyzeInformation
The Financial Planning Process
Decision Making and Financial Planning
1-L
