Financial decisions power_point_2.1.3.g1

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Financial decisions power_point_2.1.3.g1

  1. 1. 2.1.3.G1 Financial Decisions Advanced Level
  2. 2. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 What contributes to the decisions you make? Values Needs Wants
  3. 3. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 What is a Value? Value - a fundamental belief or practice about what is desirable, worthwhile, and important to an individual What do you value?
  4. 4. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 Everyone has different values Family Financial Security ? Education Helping others Honesty
  5. 5. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 What influences your values? Family Friends/ Peers Teachers Culture Media ?
  6. 6. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 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
  7. 7. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 What are your needs and wants? Perception of needs versus wants is dependent on personal values What are some things you want? What are some things you need?
  8. 8. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 • 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 Do you consider these items wants or needs?
  9. 9. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 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?
  10. 10. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 Shelbi’s Decisions Help Shelbi identify her trade-offs and opportunity costs
  11. 11. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 Making Financial Decisions Analyzing trade- offs and opportunity cost will help you make decisions
  12. 12. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 Why is it important to understand what influences your decisions? Understanding what influences your financial decisions Decisions that create high well-being
  13. 13. 2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – 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 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.

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