This document discusses financial planning and goal setting. It defines financial planning as a process of setting goals, developing a plan to achieve them, and putting the plan into action. It outlines the five steps of financial planning as setting goals, analyzing information, creating a plan, implementing the plan, and monitoring and modifying the plan. It also discusses SMART goals, which are specific, measurable, attainable, realistic, and time-limited. The document provides examples of short-term, intermediate-term, and long-term goals and examines factors that affect decision making like needs, wants, family, time, money, values, habits, culture, society, motivation, education, and attitudes.

1. Mr. Elsesser
Introduction to Financial Management

2. “Most people don’t plan to fail…
They simply fail to plan!”
Objective:
Define Financial Planning
Understanding the importance of setting goals and to modify and monitor
Examine the value of having a plan to use money
Define SMART Goals
Describe decision making processes
Do Now:
Let’s begin with the end in mind……
Where do you see yourself in 10yrs?

3. What is Financial Planning?
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

4. The Five-Step
Financial
Planning
Process

5. S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-Limited

6. SMART Goals
Specific……..
Measurable…
Attainable…..
Realistic…….
Time-Limited..
An Exact Statement of your desires
Ex: “Pay for lodging, transportation, meals
for a 5-day trip to Washington, D.C.”
Defining your monetary contribution
Ex: “$300 through fundraising, $50 from
birthday money, save $25 a week.”
Can this really be accomplished?
“If I stick to my plan, I’ll have the money
when I need it.”
Keeping your goal feasible for your
current financial situation.
Ex: “I still have enough money to live
on while I work toward this goal.”
What is the time frame for this goal?
Ex: “I need to have all the money by 6
months from now.”

7. Identifying Term Goals
• SHORT-TERM GOALS
– Within three months
• INTERMEDIATE-TERM GOALS
– Three months to a year
• LONG-TERM GOALS
– More than a year
Let’s close lesson with watching a video clip

8. Age What Kinds of Factors Affect
Needs
Decision Making?
Wants
What about you?
Family
Time
Money
Values
Habits
1-J
Culture
Society
Motivation
Education
Attitudes

9. Wants and Needs are factors that have a direct
impact on the decisions that we make.
 Financial planning requires you to set priorities
here.


WANTS:
 Things that you do not have to have to survive.

NEEDS:
 Things that you must have to survive.
 Balancing these are crucial!!! WHY?

10. 

ACTIVITY:
Identify your own wants and needs…

3 NEEDS:
 1.
 2.
 3.

3 WANTS:
 1.
 2.
 3.
 Do you see any issues here?

11. Decision Making and Financial Planning
The Decision- Making
Process
Identify Your
Goal
The Financial
Planning Process
Set Goals
Establish
Criteria
Weigh Pros
and Cons
Create a Plan
Make a Decision
Evaluate
Results
1-L
Analyze
Information
Implement
the Plan
Monitor & Modify
the Plan