Your Financial Plan: Where It All Begins
Unit 1B
“Most people don’t plan to fail…
They simply fail to plan!”
The 5-Step Financial Planning Process
Sample Wants and Needs
NEEDS
 Food
 Clothing
 Transportation
 ______________
 ______________
1-C
WANTS
 An iPod
 DVD Players
 Cell Phone
 Car
 ______________
 ______________
Values







1-D
Getting a good education
Religious faith or beliefs
Social causes
Handling money responsibly
Friendships / The people I hang out with
____________________________
____________________________
Goals








You can’t hit a target you cannot see.
The basic rules:
Goals must be written down
Realistic plans must be made for their
accomplishment
Deadlines must be set and honored
Goal setting is an art that makes everything else
possible.
Most successful people are obsessive goal setters.
Once you have goals set, you have a pattern for
opportunity
Goals






Successful people have a perfect balance
between thought and action
You must think before you act but you have to act
Don’t be afraid to take a risk
Failure is inevitable
It just should not be linked with giving up
How many chances do you give a baby to walk
before you stop them from trying?
Goals


Problem with achieving goals is that we fall
apart once we achieve our goal example:
dieting
Rewards of goal setting come not from earning
$1 million but in having learned the lessons about
what it takes to become a millionaire
Term Goals
Short-Term Goals
• Within 3 months
Intermediate-Term
• 3-12 months
Long-Term Goals
• More than a year
1-E
Delayed Gratification



1-F
Saving money over time to make a major purchase.
Waiting to buy a new product until the price goes
down.
Waiting to see the latest movie until the crowds get
smaller and the lines shorter.
S-M-A-R-T GOAL CRITERIA
1-G
Specific
Measureable
Attainable
• I will pass
personal
finance this
summer
• I will know I
have met
my goal
when I get
my report
card
• If I study
hard and
turn in all
work, I will
pass
Realistic
Time-Bound
• IF I pay
attention
during
class, I’ll
get all the
information
to complete
homework
• I’ll evaluate
my goal
after our
first test
Spending
Record
$35.00
$5.00
$6.00
$4.00
$7.00
$8.00
$15.00
$15.00
$55.00 $40.00
$15.00
1-I
Factors That Affect Decision Making
Age
Wants/Needs
Family
Time
Money
Values
Habits
Motivation
Culture
Society
Education
Attitude
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All begins
Decision Making and Financial Planning
The Decision- Making
The Financial
Process
Planning Process
Identify Your
Goal
Set Goals
Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
1-L
Analyze
Information
Create a Plan
Implement
the Plan
Monitor & Modify
the Plan
The Decision-Making Process
Remember…
The 3 R’s



Reality
Responsibility
Restraint
The 3 S’s



Saving
Spending
Sharing