PERSONAL FINANCE

Mr. Mark Harris

Exploring Values, Wants,

and Needs

OBJECTIVES• Define value.• Explore personal values.• Identify the difference between a need and a want.• Understand how personal financial decisions are influenced by an

individual’s interpretation of needs and wants.• Define goals.• Differentiate between short-term and long-term goals.• Establish SMART goals for participation in this class this semester.

VALUES

• Something that is desirable, worthwhile, and important

• Influenced by family, friends, teachers, coaches, television, and movies

• Each person has different values which guide his/her daily decisions

WHAT ARE YOUR VALUES?

Name three values that are important to you.

BEST FRIEND ADVERTISEMENT• Write an advertisement for a best friend– Include at least five qualities or characteristics you

desire or value in a friend– Describe why those qualities are important to you.

NEEDS VS. WANTS• Need - something necessary or required

for life• Name some needs???

How Much Money Does A Person Need?

• Families in India earn $1.00 to $2.00 a day.

• Could your family live off $1.00 to $2.00 a day?

• What do you think families in India think they NEED?

How Do Values Influence Needs?

– You need shelter, but do you NEED a mansion?

– You need clothes, but do you NEED designer clothes?

–WHAT DO YOU NEED?

NEEDS VS. WANTS

• Want - something unnecessary but desired

• May increase the quality of living or make a person happier

How Do Values Influence Wants?

– If being popular or having all of the newest gadgets is valued, a person may have a lot of wants.

–WHAT DO YOU WANT?

A WANT OR A NEED? YOU DECIDE…

Car

Nike Sneakers

Hot Tub

Computer

Food

I-Pod

Cell Phone

Clothes

THOUGHT PROVOKING?• How do values influence how people spend money?

– Example: If an individual values helping others, he may decide to give money to a church or other charitable groups

THOUGHT PROVOKING?

How do needs and wants influence how people spend money?

How do needs and wants influence how people spend money?

REVIEW. . .• What is a value?• Who influences values?• What is a want?• What is a need?• How do values, wants, and needs influence

financial decisions?

GOALS

• 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.

• 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.Identifying goals makes decision making easier.

Financial goals are specific objectives to be

accomplished through financial planning

Financial goals are specific objectives to be

accomplished through financial planning

Education goals enable individuals to prepare for

future success in the workplace

Education goals enable individuals to prepare for

future success in the workplace

Short-term goals are specified as less than one

year

Short-term goals are specified as less than one

year

Long-term goals are specified as more than

one year

Long-term goals are specified as more than

one year

SMART Educational Goals

Activity for Review• Work with your partner on the activities

of Chapter 1 of your NEFE workbook.