Bellwork 1-1

1. Bellwork 1-1 • List 3 times in life you would need to plan financially. • List 3 things to consider when planning financially. • Would you recommend planning out your finances? Why or Why not?

2. Setting Financial Goals Unit 3 Objective 1.02

3. If you don’t know where you are going, how do you expect to get there? First Reaction…

4. Set Goals! Goal – the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Setting goals is like creating a map for a road trip

5. How can goal setting benefit you? Creates a path and provides guidance for your future Helps make the life you want to live a reality Helps with decision making Helps create well-being How can goal setting benefit your life?

6. Is it realistic to write goals for every decision you make? Daily decisions that don’t require a lot of thought Require thought, effort, time, personal discipline What to do after high school graduation What to wear in the morning Is it realistic to write goals for routine decisions? Important to write goals for major decisions

7. To Goal or Not To Goal? Which of the following decisions would you write a goal for? When you will complete your homework this evening Which extra-curricular activities you will participate in When you will purchase a car What you will eat for lunch Underline items in your letter that could be achieved by writing down a goal

8. How can goal setting help you manage your money? Financial Planning - managing money continuously through life in order to reach financial goals Financial Goals - specific objectives (or goals) that are accomplished through financial planning Setting financial goals will help you make day to day spending decisions Goal setting is important to financial planning Circle items in your letter that could be achieved by writing a financial goal

9. Elements of a successful goal… Specific Measurable Attainable Realistic Time Bound

10. S = Specific • End result of goal is clearly defined • Financial goal = state exactly what is to be done with the money • I will reduce my debt. • I will reduce the amount I owe on my car loan.

11. M = Measurable • Determine exactly when you will know that the goal has been met • Financial goal = state the exact dollar amount • I will reduce the amount I owe on my car loan. • I will reduce the amount I owe on my car loan by $1,000.

12. A = Attainable • Create a step-by-step plan outlining exactly how the goal can be reached • Financial goal = Often determined by a spending plan or budget • I will reduce the amount I owe on my car loan by $1,000. • Lacey has an extra $100 to spend: • I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week.

13. R = Realistic How do you determine if a goal is unrealistic? Examine the consequences of that goal Opportunity cost - the value of the next best alternative that must be forgone when making a decision Trade-off - giving up one thing for another Consider the trade-offs and opportunity costs

14. Example What could Lacey do with the $100 besides spend it on her car loan? Her next best option is to save the $100 This is a trade-off Paying off her car loan is more important to Lacey than any other use of her money Determine what the value (opportunity cost) of the trade-off is to her Which decision should Lacey make?

15. R = Realistic • I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week. • Lacey has determined that paying her car loan is more important than any other use of her money. The opportunity cost of paying her car loan is higher than the alternative of saving that money.

16. T = Time Bound • Specifically state when the goal will be reached • Consider whether your goals are short-term or long-term • Short-term goal – attained in less than one year • Long-term goal – attained in more than one year • Financial goal – make sure to consider your long-term financial needs when setting financial goals • I will reduce the amount I owe on my car loan by $1,000 in 10 weeks by paying an extra $100 per week. • I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100 per week.

17. SMART Financial Goals Summary Specific State exactly what is to be done with the money involved Measurable Write the exact dollar amount Attainable Create a step-by-step plan outlining exactly how the goal can be reached Realistic Think through the trade-offs and opportunity costs to analyze the consequences of your goal to make sure it isn’t unattainable Time Bound Specifically state when the goal will be reached

18. Example of a well written SMART Goal Tyra will save money for college. Tyra will save $600. Tyra will spend $25 less on entertainment every month in order to save that $25 instead. Tyra has determined that the opportunity cost of saving money is more valuable than spending an extra $25 on entertainment every month. Tyra will save money for the next two years. Tyra will save $600 for college. Tyra has decided that she is willing to spend $25 less on entertainment every month in order to save $25 per month for the next two years.

19. Once you write a goal, how can you ensure that you reach it? • Continually evaluate your goals • What will you do if something gets in the way of reaching your goal? • Make your goals public • Ask a friend or family member to hold you accountable • Use a goal setting website • Reward yourself for reaching your goal

20. SMART Goal Assignment • Below are 2 individuals with financial goals in mind. You are to create a detailed SMART goal for both individuals: • Devin has 2 years left in high school wants to have enough money saved to pay his 1st year of college in full on the 1st day of college. He averages $175/wk from work and has the following expenses: $125/mo truck payment, $75/mo car insurance payment, $90/mo phone bill, $100/mo in gas, $100/mo fun money for his truck, and $50/mo for dates and entertainment. He plans to attend UNCG and the annual tuition is $5445. • Keisha has $16,500 left to pay on her student loans and wishes to have it paid off in 3 years. She makes $1980/mo and has the following monthly expenses: Rent $510, Water $10, Electricity $50, Car $275, Car Insurance $65, Phone $75, Direct TV $63, Student Loans $199, Gas $75, and Groceries $250. • Now you are to think of 2 personal financial goals you have for your life. Write a detailed SMART goal for each of those goals. • Complete in Microsoft Word and submit to Edmodo by the end of class.

21. Bellwork 1-2 • Ted earns $250 a week from his part-time job. His goal is to save $150 each month to go on a vacation. Which phrase BEST describes this goal? • A. Attainable, but not measurable • B. Measureable and time-bound • C. Measurable, but not time-bound • D. Specific, but not measurable • Mary's goal is to put aside money for Christmas presents from May until December. Which phrase BEST describes this goal? • A. Attainable and measurable • B. Realistic, but not time-bound • C. Time-bound, but not realistic • D. Time-bound, but not measurable • Matt's goal is to save his pocket money to buy a used CD player from his cousin who has just bought a new player. Which phrase BEST describes this goal? • A. Measurable and time-bound • B. Measurable, but not time-bound • C. Not measurable and not time-bound • D. Time-bound, but not measurable

22. Financial Decisions A type of major decision Impacts an individual’s or family’s well-being Well-being is the state of being happy, healthy, and prosperous For example… Saving for a family vacation Spending money wisely Purchasing new items

23. Decision Making Process It guides individuals to think through all components of making a good decision STEPS: 1. Identify the problem 2. List alternatives 3. Decide 4. Evaluate the Results

24. Steps Identify the Problem Know the problem or question before searching for an answer List Alternatives Brainstorm pros and cons for all of the possible choices

25. Steps Continued Decide Make the best choice after thinking about all of the consequences Evaluate the results This will help in making better decisions in the future

26. So Many Choices! There are many different options to chose when making a decision Every option has a different consequence

27. Benefits of Good Decision Making When decision making skills improve, quality of life is enhanced Making better choices to your decisions results in better use of time, money and other resources

28. Values Values are fundamental beliefs or practices about what is desirable, worthwhile, and important People have different values that influence the decisions they make The decision-making process can be used to: identify personal values develop the best solution to a problem

29. Summary Decision- a choice that will affect a person’s life Routine- everyday, simple decisions that can become habit Major- big, complex decisions that should be thought out carefully Decision Making Process What are the steps? Remember… making good decisions enhances quality of life

30. Bottom Line • Good decisions lead to the achievement of goals and a feeling of self-control and self-confidence. • Good decisions are a key to successful independent living.

31. Decision Making Assignment • Go to: http://ezinearticles.com/?6-Steps-to-Making-Good-Financial-Decisions-in-Tough-Times&id=1528485 • List and describe the 6 steps to making good financial decisions in tough times • Go to: http://www.foxbusiness.com/personal-finance/2011/01/11/bad-financial-decisions-recover/ • What are 5 bad financial decisions and how can one recover from them? • Think of a decision you have made in the past, financial or not: • What factors led to the decision? • What habits, practices, steps did you use? • What were the outcomes (positive or negative)? • How would you approach a similar decision in the future? • Think of a decision you will face in the future, financial or not: • Identify the decision to be made? • Identify resources and information needed to make the decision. • Identify options and list pros and cons of each. • Choose the best option and state why. • Complete in PowerPoint and submit to Edmodo by the end of class.

32. Bellwork 1-3 • At breakfast, Carla's Dad announced a family trip to visit his mother. At lunch, Mary invited Carla on a shopping trip and Jeff invited Carla to join him for a picnic lunch. Then Carla realized that all the invitations were for the same day and she would have to make a choice. Which step in decision-making is this? • A. Identify the decision to be made • B. Identify resources and gather information • C. Identify the options • D. Identify the pros and cons of each option • Mark's car refused to start. He checked an online repair manual, looked at his bank balance, and asked his uncle, who is a mechanic, if he could teach him how to make needed repairs. Which step in decision-making is this? • A. Identify the decision to be made • B. Identify resources and gather information • C. Identify the options • D. Identify the pros and cons of each option • At the end of her freshman year at State University, Vera thought about the decision she had made to go to a state-supported university and realized she had made a smart choice. Which step in decision-making is this? • A. Identify the pros and cons of each option • B. Choose the best option • C. Put the decision into action • D. Evaluate the outcomes of the decision

33. Society and Decisions Blog • Go to: http://www.managementstudyguide.com/social-factors-affecting-consumer-behaviour.htm and answer: • What are the 3 things in society that influence our decisions? • What does a primary group consist of and how do they influence decisions? • What are the stages each individual go through in life? • What does a secondary group consist of and how do they influence decisions? • What does it say about Roles in Society? • What does it say about Social Status?

34. Family Cultural Social Societal Demographic Economical Technology Media Marketplace Legal/Moral Personal What Factors Influence Decisions?

35. Family factors Family structure Income level Lifestyle Size Age Stage of life cycle Health status Emergencies

36. Cultural factors • Cultural and ethnic groups impact • Values • Beliefs • Lifestyle • Family structures • Clothing choices • What are the advantages and disadvantages of cultural diversity within a family, a school, a workplace, a community?

37. Social factors • Education level • Family structure • Immigration • Ethnicity • Rural, urban, suburban community • Peer pressure • Community relationships and involvement

38. Societal and Demographic factors • Demography is the statistical characteristics of a population • Age • Sex • Race • Birth, marriage, death rates

39. Economic factors • Employment rate • Kind and number of jobs available • Inflation • A period of rapid increase in the price of goods and services • Recession • An extended period of slow economic growth • Government Regulations • Fiscal policies affect personal & business spending

40. Decision Factors Part 1 Assignment • Reflect on 3 decisions you have made in your life, financial or not. Answer the following for each of those decisions: • How did your family influence that decision? • How did your culture influence that decision? • How did social factors influence that decision? • How did society and demographics effect that decision? • How did the economy impact that decision? • Complete in PowerPoint and submit to Edmodo by the end of class.

41. Bellwork 1-4 • Sarah's concern over the rate of inflation caused her to set a goal to reduce the amount of money she spends on impulse purchases. Which type of factor MOST LIKELY influenced Sarah's decision? • A. Cultural • B. Economic • C. Social • D. Technology • The Perkins have one family member who is employed, another who has just been laid off, and two children in college. They decided to plant a vegetable garden to save money on food. Which type of factor MOST LIKELY influenced the Perkins' decision? • A. Cultural • B. Family • C. Legal • D. Technology • Since his Bar Mitvah, Ben wears a skull cap at both synagogue and high school. Which type of factor MOST LIKELY influenced Ben's decision? • A. Cultural • B. Media • C. Social • D. Technology

42. Media and Decisions Blog • Go to: http://www.uncp.edu/home/acurtis/Courses/ResourcesForCourses/Media&Society/MassMediaInfluenceOnSociety.html answer the following: • “So What”, why is it important to understand media influences? • How does media influence us? • Who controls the message? • How do media influence public opinion? • How do ads influence us? Give an example.

43. Family Cultural Social Societal/Demographic Economical Technology Media Marketplace Legal/Moral Personal What Factors Influence Decisions?

44. Technology • The use of mechanical or electronic devices to manipulate • Information (Ie. Computers, Ipads, Fax machines, fiber optics, GPS systems) • Objects (i.e Robots, automated assembly lines, hybrid cars) • On going change impacts • Training needs • Replacing obsolete technology • Types of jobs available

45. The Media • Media • Communications that reach large audiences with the aid of publication devices that include • Internet • Television • Voice, text, & data transmissions • Publications • Impacts the ways people and businesses communicate and operate locally, nationally, and globally.

46. The Marketplace • Supply • Goods and services available to the consumer • Demand • Consumer desire to purchase as compared to availability • Market response • How quickly the market adjusts to supply versus demand

47. Legal and Moral factors • Laws that impact spending • Taxation • Investment and Retirement Accounts • Insurance requirements • Beliefs in what is right and wrong • What is appropriate behavior of employers, employees, and individuals at home, work, and within the community. • Charitable giving and Service

48. Personal factors • Needs • Items to survive – food, clothing, & shelter • Wants • Not essential but desirable – cell phone, Music CDs, • Values • A person’s belief about what is important and desirable • Standards • Measures of quality or excellence • Priorities • Deciding what is more important at any point in time.

49. What Decisions will you make? What is a factor you want to think about in the future before making financial decisions? What is a factor that influences both your and your family’s financial decisions in the same way? What is a factor that influences your financial decisions differently than the rest of your family? Than your friends? What is a factor that does not influence your financial decisions at this time?

50. Decision Factors Part 2 Assignment • Reflect on 3 decisions you have made in your life, financial or not. Answer the following for each of those decisions: • How did technology influence that decision? • How did the media influence that decision? • How did the marketplace influence that decision? • How did legal and moral factors effect that decision? • How did personal factors impact that decision? • Complete in PowerPoint and submit to Edmodo by the end of class.