Notes/Content

1. 2.1.3.G1
Financial Decisions
Advanced Level

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. 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. 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. 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. 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. 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?
Move towards the arrow indicating whether you
feel each item is a need or a want
Needs Wants
Perception of needs versus wants is dependent
on personal values

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
What are your needs
and wants?
Needs Wants

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. 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. 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. 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. 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.