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1.17.3.G1
Setting Financial Goals
“Take Charge of Your Finances”
Advanced Level
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Fina...
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1.02 setting financial goals power point burns

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  • Changes to slide 6, 7, 10, 11, 12, 13
  • New Slide
  • New Slide
  • Added “education” to the title and changed the smart art on this slide so that there are not 3 SMART Goals slide that look exactly the same
  • Bolded the Smart goal elements
  • Added “financial” to the title and changed the smart art so that it is not the same as the other smart goals slides
  • Bolded the Smart goal elements
  • Transcript of "1.02 setting financial goals power point burns"

    1. 1. 1.17.3.G1 Setting Financial Goals “Take Charge of Your Finances” Advanced Level
    2. 2. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Financial Goals Learning to set financial goals is an important part of learning to live independently Financial Goals - Are accomplished through, & give direction to, financial planning
    3. 3. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Financial planning- A tool used to achieve financial success based upon the development and implementation of financial goals Many people follow a similar financial pattern during their life BUT Everyone has an individualized financial plan
    4. 4. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What are Goals? Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Financial goals – specific objectives to be accomplished through financial planning Education goals - enable individuals to prepare for future success in the workplace
    5. 5. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Short-term and Long-term Goals Goal Short-term goals- specified as less than one year Long-term goals - specified as more than one year
    6. 6. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 The Importance of Goal Writing  A study in What They Don’t Teach You at Harvard Business School by Mark McCormack  1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?"  3% had written goals and plans  13% percent had goals, but they were not in writing  84% percent had no specific goals at all
    7. 7. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 And what about that 3%  Ten years later….the 3% that had written goals and plans were earning, on average, ten times as much as the other 97 percent put together Why is goal setting important?
    8. 8. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Setting Financial Goals Video
    9. 9. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 SMART Goals SMART Goals Specific – exact, clearly defined or explained Measurable – A figure that can be objectively assessed – ex. A measurable cost or time Attainable – Able to be reached – ex. A budget amount that can be realized Realistic – In keeping with reality, likely to happen Time Bound – Containing a date when a goal will be reached Financial & Educational Goals should be SMART goals
    10. 10. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 SMART Education Goals • State exactly what is to be done with the education aspect involvedSpecific • Write the exact grade or class that the goal is forMeasurable • Determine how it can be reached, which is often determined by academic workAttainable • Do not set goal for something unattainable or out of reachRealistic • Specifically state when the goal needs to be reachedTime Bound
    11. 11. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 SMART Education Goal Goal Specific Measurable Attainable Realistic Time Bound I want to attend a four year college Because I want to attend a four year college, I will earn a B in algebra Because I want to attend a four year college, I will earn a B in algebra this semester 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 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 I want to attend college
    12. 12. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 SMART Financial Goals • State exactly what is to be done with the money involvedSpecific • Write the exact dollar amount the goal is forMeasurable • Determine how it can be reached (often determined by a budget)Attainable • Do not set goals for something unattainable or out of reachRealistic • Specifically state when the goal needs to be reachedTime Bound
    13. 13. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 SMART Financial Goal Goal Specific Measurable Attainable Realistic Time Bound I plan to save for a down payment on a new car I plan to save $5,000 for a down payment on a new car I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck It is realistic to save $200 from each paycheck because I usually waste the money on unnecessary items instead of saving it I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years I want to buy a new car
    14. 14. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What influences a person’s financial plan? Many factors that can be expected or unexpected: Financial Planning Values, Goals & Personal Choices Major Life Events Life Cycle Needs Lifestyle Conditions Life Cycle Needs
    15. 15. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 The choices you make today impact your future! Choices and goals made in the present may have a significant impact on your future financial plan Financial Planning Values, Goals, & Personal Choices Major Life Events Life events that affect your financial plan may be unexpected
    16. 16. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What are examples of lifestyle conditions that may affect a person’s financial plan? Marital status Employment status Income Age Number of dependents Economic outlook Education Health status Financial Planning Values, Goals, & Personal Choices Major Life Events Lifestyle Conditions
    17. 17. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Typical financial life cycle pattern applies to most people and affects a financial plan Financial Life Cycle Life cycle - a series of stages through which an individual passes during his or her lifetime Financial Planning Values, Goals, & Personal Choices Life Cycle Needs Major Life Events Lifestyle Conditions
    18. 18. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Typical Financial Life Cycle $ Approaching Retirement Years Retirement YearsSingle * Marriage * Start and Raise Family 0 20 30 40 50 60 70 80 Years of Age Stage 1: Basic Wealth Protection Stage 3: Wealth Distribution Stage 2: Wealth Accumulation
    19. 19. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What types of financial planning would occur during each stage of the financial life cycle? Stage 1 Stage 3 Stage 2 Stage 1: Basic Wealth Protection (protecting your future) – focus on building financial security • Develop emergency savings • Develop positive credit • Begin investing in retirement • Purchase insurance
    20. 20. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What types of financial planning would occur during each stage of the financial life cycle? Stage 1 Stage 3 Stage 2 Stage 2: Wealth Accumulation (giving it to yourself) Head of household has reached peak earning years, is accumulating wealth, and approaching retirement • Investing to build wealth • Purchasing a home
    21. 21. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 What types of financial planning would occur during each stage of the financial life cycle? Stage 1 Stage 3 Stage 2 Stage 3: Wealth Distribution (giving it to your chosen ones) The consumption of wealth, usually during retirement • Estate planning
    22. 22. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Financial Life Cycle Events High school: 13-17 Young adult: 18- 24 Adult with or without children: 25-34 Working parent or adult: 35- 44 Midlife: 45-54 Pre- retiremen t: 55-64 Retired: 65 and older
    23. 23. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs  Developing a plan for eventual independence  Preparing for career  Evaluating future financial needs and resources  Exploring financial systems – banks, etc.  Developing a personal system of record keeping High school: 13-17 People in certain age groups tend to have similar financial life cycle needs
    24. 24. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs – Establishing a household – Training for a career – Earning financial independence – Determining insurance needs – Establishing credit – Establishing savings – Creating a spending plan – Begin investing in retirement – Developing a personal financial identity Young adult: 18- 24
    25. 25. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs – Child-bearing – Child-raising – Expanding career goals – Investing in retirement – Managing increased need for credit – Discussing and managing additional insurance needs – Creating a will – Starting an education fund for children Adult with or without children: 25-34
    26. 26. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs  Upgrading career training  Developing protection needs for head-of-household  Investing in retirement  Establishing retirement goals  Building on children’s education fund  Need for greater income due to expanding needs Working parent or adult: 35- 44
    27. 27. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs  Assisting with higher education for children  Investing in retirement  Updating retirement goals and plans  Developing estate plans Midlife: 45-54
    28. 28. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs  Consolidating assets  Re-evaluating property transfer  Investing in retirement  Evaluating expenses for retirement and current housing  Planning future security  Investigating retirement part-time income or volunteer work  Meeting responsibilities of ageing parents  Planning for long-term care insurance and medical care in retirement Pre- retirement: 55-64
    29. 29. © Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs – Re-evaluating and adjusting living conditions and spending as related to health and income – Adjusting insurance programs for increasing risks – Finalizing will or letter of last instructions – Acquiring assistance in management of personal and financial affairs – Finalizing estate plans Retired: 65 and older
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