About Me
About Me
• Lesson Objectives
– Apply creative thinking skills to express one’s
values, needs, wants, and goals
– Demonstrate the ability to present personal
information
About Me
• A person is defined by their values, goals,
needs, and wants.
• Value (definition)
– A fundamental belief or practice about what is
desirable, worthwhile, and important to an
individual.
• Goal (definition)
– The end result of something a person intends
to acquire, achieve, do, reach, or accomplish
sometime in the near or distant future.
About Me
• A person is defined by their values, goals,
needs, and wants.
• Need (definition)
– Something thought to be necessary; essential
items required for life.
• Want (definition)
– Something unnecessary but desired; items
which increase the quality of living.
About Me
• A person is defined by their values, goals,
needs, and wants.
• It is important to examine your lifestyle and
what you enjoy before attempting to define
personal values.
About Me
• “About Me” Time Capsule
– Worksheet
– Homework
• Picture or illustration
About Me
• Your personal finance decisions will be
influenced by your values, goals, needs,
and wants.
About Me
• Lesson Objectives – Review
– Apply creative thinking skills to express one’s
values, needs, wants, and goals
– Demonstrate the ability to present personal
information
LIFE CYCLE
OF
FINANCIAL PLANNING
Life Cycle of Financial Planning
• Lesson Objectives
– Analyze lifestyle conditions which may affect
one’s financial situation throughout the life
cycle
– Identify financial needs throughout the life
cycle
– Apply life cycle financial planning when
implementing a personal financial
management plan
Life Cycle of Financial Planning
“Everyone follows the same financial plan.”
True or False?
Life Cycle of Financial Planning
“Everyone follows the same financial
plan.” - False!
• People do not have exactly the same
– life experience
– major life events
– financial plans
Life Cycle of Financial Planning
• Financial planning (definition)
– A tool used to achieve financial success
based upon the development and
implementation of financial goals.
Life Cycle of Financial Planning
• Lifestyle conditions which may occur to
change the financial plan of an individual or
family:
a) Marital status
– Single, married, divorced, widowed
b) Employment status
– Employed, unemployed, facing unemployment
c) Age
d) Number of dependents
– Children, spouse, parents, other family members
Life Cycle of Financial Planning
• Lifestyle conditions which may occur to
change the financial plan of an individual or
family:
e) Economic outlook
– Interest rates, employment level, salary rates
f) Education
– Education level of family members, tuition needs
for children
g) Health status
Life Cycle of Financial Planning
• Lifestyle conditions which may occur to
change the financial plan of an individual
or family:
Example: A 17-year-old single mother’s
financial plan is different than a 17-year-old
student without a child.
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
– The bell curve represents the traditional
wealth one accumulates during the life
cycle in three stages.
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
– Stage 1: Basic Wealth Protection
The beginning of the curve is where a person
“quits giving money to others.” This is the
family formation stage for many people. This
is when an individual may be beginning to
earn money, continuing education, starting a
job or career, and/or starting a family. The
individual should be focusing on gaining
wealth and earnings.
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
– Stage 2: Wealth Accumulation
The second stage is where a person is “giving
the money to self.” The household head has
reached peak earning years, is accumulating
wealth, and approaching retirement.
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
– Stage 3: Wealth Distribution
The last stage involves “giving the money to
your chosen ones.” This stage is also known
as retirement, where consumption of wealth
occurs, and involves estate planning.
Life Cycle of Financial Planning
An Individual’s Financial Life Cycle
graph 1.11.2.D2
Summary:
An individual or family will set specific
financial goals to be met during their
life cycle.
Life Cycle of Financial Planning
Personal Financial Management
Pyramid 1.11.2.D1
– Illustrates the same idea as the graph,
however …
• The graph shows the visual timeline
• The pyramid lists things which occur over a
life cycle
– The levels of the pyramid contribute to a
well-managed and balanced financial
plan recommended for individuals
Life Cycle of Financial Planning
Personal Financial Management Pyramid
1.11.2.D1
Summary:
Building a solid financial foundation allows a
person to build wealth and move up the
pyramid.
– It is based on a hierarchy where decisions at one
level affect the other levels. As a person moves
up the pyramid, their financial plan becomes
more complex.
Life Cycle of Financial Planning
• Life Cycle (definition)
– A series of stages in which an individual
passes during his/her lifetime.
Life Cycle of Financial Planning
• Life Cycle Needs
– Group activity
Life Cycle of Financial Planning
• Life Cycle Needs
– Group activity
• Brainstorm activities and events which require
financial planning for your assigned age
group and write your ideas on the poster
board
Life Cycle of Financial Planning
• Life Cycle (definition)
– A series of stages in which an individual
passes during his/her lifetime.
• Remember … the age at which events
occur can drastically vary among
people.
Life Cycle of Financial Planning
• Life Cycle Needs
• Homework
– Life Cycle Needs – “Sally’s Scenario”
worksheet
– Personal Life Cycle of financial Planning
worksheet 1.11.2.A1
Life Cycle of Financial Planning
Review
“Everyone follows the same financial
plan.” - False!
• People do not have exactly the same
– life experience
– major life events
– financial plans
Life Cycle of Financial Planning
• Lesson Objectives – Review
– Analyze lifestyle conditions which may affect
one’s financial situation throughout the life
cycle
– Identify financial needs throughout the life
cycle
– Apply life cycle financial planning when
implementing a personal financial
management plan
INTEREST INVENTORY
Interest Inventory
• Lesson Objectives
– Discuss the steps involved in successfully
setting and achieving career goals
– Evaluate potential career areas based upon
the results of an interest inventory test
Interest Inventory
“People find one career path to follow
throughout their lifetime.”
True or False?
Interest Inventory
“People find one career path to follow
throughout their lifetime.” - False!
• Career development is a lifelong process.
• Workers tend to change careers and jobs
many times.
Interest Inventory
What’s the difference between
a job and a career?
Interest Inventory
What’s the difference between a job and
a career?
• Job (definition)
– An employment position obtained mainly to
earn money.
• Career (definition)
– A commitment to a profession which requires
continued training and offers a clear path for
occupational growth.
Interest Inventory
• What are you looking for in a career?
– Income, job security, opportunity for
advancement, etc.
Interest Inventory
• Do you feel that your career goals may
change in 10 years?
Interest Inventory
• How many of you are planning on having
a family?
• How will this influence your career goals?
Interest Inventory
• Have you chosen a career path already?
– If not, an interest inventory may provide you
with potential career paths which match
personal interests and aptitudes.
– If yes, an interest inventory may show you
additional careers to consider.
• Interest inventory test (definition)
– A test which performs a self-assessment of
personal interests and values to suggest
potential career paths.
Interest Inventory
• Occupational cluster (definition)
– Career path with many job opportunities.
• Example: an individual with a marketing degree
may work in marketing research, advertising,
sales, public relations, or management.
• What are some other occupational
clusters?
Interest Inventory
• Activities
– Personality Mosaic Test worksheet
1.1.6.A2
– Scoring Answers for the Personality
Mosaic worksheet 1.1.6.A3
Interest Inventory
• Homework
– Personality Mosaic Career Options
worksheet 1.6.1.A4
– Interest inventory Research Information
worksheet 1.1.6.A1
Interest Inventory
• Lesson Objectives -- Review
– Discuss the steps involved in successfully
setting and achieving career goals
– Evaluate potential career areas based upon
the results of an interest inventory test