- 1. 1.17.3.G1 Setting Financial Goals Take Charge of Your
Finances Advanced Level
2. Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 2 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 Financial Goals Learning to set financial
goals is an important part of learning to live independently
Financial Goals - Are accomplished through, & give direction
to, financial planning 3. Family Economics & Financial
Education Revised April 2011 Values, Needs vs. Wants, & Goal
Setting Unit Setting Financial Goals Slide 3 Funded by a grant from
Take Charge America, Inc. to the Norton School of Family and
Consumer Sciences at the University of Arizona 1.17.3.G1 Financial
planning- A tool used to achieve financial success based upon the
development and implementation of financial goals Many people
follow a similar financial pattern during their life BUT Everyone
has an individualized financial plan 4. Family Economics &
Financial Education Revised April 2011 Values, Needs vs. Wants,
& Goal Setting Unit Setting Financial Goals Slide 4 Funded by a
grant from Take Charge America, Inc. to the Norton School of Family
and Consumer Sciences at the University of Arizona 1.17.3.G1 What
are Goals? Goal the end result of something a person intends to
acquire, achieve, do, reach, or accomplish sometime in the near or
distant future Financial goals specific objectives to be
accomplished through financial planning Education goals - enable
individuals to prepare for future success in the workplace 5.
Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 5 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 Short-term and Long-term Goals Goal Short-term
goals- specified as less than one year Long-term goals - specified
as more than one year 6. Family Economics & Financial Education
Revised April 2011 Values, Needs vs. Wants, & Goal Setting Unit
Setting Financial Goals Slide 6 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 The Importance of Goal
Writing A study in What They Dont Teach You at Harvard Business
School by Mark McCormack 1979- Students were asked, "Have you set
clear, written goals for your future and made plans to accomplish
them?" 3% had written goals and plans 13% percent had goals, but
they were not in writing 84% percent had no specific goals at all
7. Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 7 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 And what about that 3% Ten years later.the 3%
that had written goals and plans were earning, on average, ten
times as much as the other 97 percent put together Why is goal
setting important? 8. Family Economics & Financial Education
Revised April 2011 Values, Needs vs. Wants, & Goal Setting Unit
Setting Financial Goals Slide 8 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 Setting Financial Goals
Video 9. Family Economics & Financial Education Revised April
2011 Values, Needs vs. Wants, & Goal Setting Unit Setting
Financial Goals Slide 9 Funded by a grant from Take Charge America,
Inc. to the Norton School of Family and Consumer Sciences at the
University of Arizona 1.17.3.G1 SMART Goals SMART Goals Specific
exact, clearly defined or explained Measurable A figure that can be
objectively assessed ex. A measurable cost or time Attainable Able
to be reached ex. A budget amount that can be realized Realistic In
keeping with reality, likely to happen Time Bound Containing a date
when a goal will be reached Financial & Educational Goals
should be SMART goals 10. Family Economics & Financial
Education Revised April 2011 Values, Needs vs. Wants, & Goal
Setting Unit Setting Financial Goals Slide 10 Funded by a grant
from Take Charge America, Inc. to the Norton School of Family and
Consumer Sciences at the University of Arizona 1.17.3.G1 SMART
Education Goals State exactly what is to be done with the education
aspect involvedSpecific Write the exact grade or class that the
goal is forMeasurable Determine how it can be reached, which is
often determined by academic workAttainable Do not set goal for
something unattainable or out of reachRealistic Specifically state
when the goal needs to be reachedTime Bound 11. Family Economics
& Financial Education Revised April 2011 Values, Needs vs.
Wants, & Goal Setting Unit Setting Financial Goals Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton
School of Family and Consumer Sciences at the University of Arizona
1.17.3.G1 SMART Education Goal Goal Specific Measurable Attainable
Realistic Time Bound I want to attend a four year college Because I
want to attend a four year college, I will earn a B in algebra
Because I want to attend a four year college, I will earn a B in
algebra this semester Because I want to attend a four year college,
I will earn a B in algebra this semester to prepare me for the
college entrance exam Because I want to attend a four year college,
I will earn a B in algebra this semester to prepare me for the
college entrance exam when I am a junior I want to attend college
12. Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 12 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 SMART Financial Goals State exactly what is to
be done with the money involvedSpecific Write the exact dollar
amount the goal is forMeasurable Determine how it can be reached
(often determined by a budget)Attainable Do not set goals for
something unattainable or out of reachRealistic Specifically state
when the goal needs to be reachedTime Bound 13. Family Economics
& Financial Education Revised April 2011 Values, Needs vs.
Wants, & Goal Setting Unit Setting Financial Goals Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton
School of Family and Consumer Sciences at the University of Arizona
1.17.3.G1 SMART Financial Goal Goal Specific Measurable Attainable
Realistic Time Bound I plan to save for a down payment on a new car
I plan to save $5,000 for a down payment on a new car I plan to
save $5,000 for a down payment on a new car by saving $200 from
every paycheck It is realistic to save $200 from each paycheck
because I usually waste the money on unnecessary items instead of
saving it I plan to save $5,000 for a down payment on a new car by
saving $200 from each paycheck for two years I want to buy a new
car 14. Family Economics & Financial Education Revised April
2011 Values, Needs vs. Wants, & Goal Setting Unit Setting
Financial Goals Slide 14 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 What influences a persons
financial plan? Many factors that can be expected or unexpected:
Financial Planning Values, Goals & Personal Choices Major Life
Events Life Cycle Needs Lifestyle Conditions Life Cycle Needs 15.
Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 15 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 The choices you make today impact your future!
Choices and goals made in the present may have a significant impact
on your future financial plan Financial Planning Values, Goals,
& Personal Choices Major Life Events Life events that affect
your financial plan may be unexpected 16. Family Economics &
Financial Education Revised April 2011 Values, Needs vs. Wants,
& Goal Setting Unit Setting Financial Goals Slide 16 Funded by
a grant from Take Charge America, Inc. to the Norton School of
Family and Consumer Sciences at the University of Arizona 1.17.3.G1
What are examples of lifestyle conditions that may affect a persons
financial plan? Marital status Employment status Income Age Number
of dependents Economic outlook Education Health status Financial
Planning Values, Goals, & Personal Choices Major Life Events
Lifestyle Conditions 17. Family Economics & Financial Education
Revised April 2011 Values, Needs vs. Wants, & Goal Setting Unit
Setting Financial Goals Slide 17 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 Typical financial life cycle
pattern applies to most people and affects a financial plan
Financial Life Cycle Life cycle - a series of stages through which
an individual passes during his or her lifetime Financial Planning
Values, Goals, & Personal Choices Life Cycle Needs Major Life
Events Lifestyle Conditions 18. Family Economics & Financial
Education Revised April 2011 Values, Needs vs. Wants, & Goal
Setting Unit Setting Financial Goals Slide 18 Funded by a grant
from Take Charge America, Inc. to the Norton School of Family and
Consumer Sciences at the University of Arizona 1.17.3.G1 Typical
Financial Life Cycle $ Approaching Retirement Years Retirement
YearsSingle * Marriage * Start and Raise Family 0 20 30 40 50 60 70
80 Years of Age Stage 1: Basic Wealth Protection Stage 3: Wealth
Distribution Stage 2: Wealth Accumulation 19. Family Economics
& Financial Education Revised April 2011 Values, Needs vs.
Wants, & Goal Setting Unit Setting Financial Goals Slide 19
Funded by a grant from Take Charge America, Inc. to the Norton
School of Family and Consumer Sciences at the University of Arizona
1.17.3.G1 What types of financial planning would occur during each
stage of the financial life cycle? Stage 1 Stage 3 Stage 2 Stage 1:
Basic Wealth Protection (protecting your future) focus on building
financial security Develop emergency savings Develop positive
credit Begin investing in retirement Purchase insurance 20. Family
Economics & Financial Education Revised April 2011 Values,
Needs vs. Wants, & Goal Setting Unit Setting Financial Goals
Slide 20 Funded by a grant from Take Charge America, Inc. to the
Norton School of Family and Consumer Sciences at the University of
Arizona 1.17.3.G1 What types of financial planning would occur
during each stage of the financial life cycle? Stage 1 Stage 3
Stage 2 Stage 2: Wealth Accumulation (giving it to yourself) Head
of household has reached peak earning years, is accumulating
wealth, and approaching retirement Investing to build wealth
Purchasing a home 21. Family Economics & Financial Education
Revised April 2011 Values, Needs vs. Wants, & Goal Setting Unit
Setting Financial Goals Slide 21 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 What types of financial
planning would occur during each stage of the financial life cycle?
Stage 1 Stage 3 Stage 2 Stage 3: Wealth Distribution (giving it to
your chosen ones) The consumption of wealth, usually during
retirement Estate planning 22. Family Economics & Financial
Education Revised April 2011 Values, Needs vs. Wants, & Goal
Setting Unit Setting Financial Goals Slide 22 Funded by a grant
from Take Charge America, Inc. to the Norton School of Family and
Consumer Sciences at the University of Arizona 1.17.3.G1 Financial
Life Cycle Events High school: 13-17 Young adult: 18- 24 Adult with
or without children: 25-34 Working parent or adult: 35- 44 Midlife:
45-54 Pre- retiremen t: 55-64 Retired: 65 and older 23. Family
Economics & Financial Education Revised April 2011 Values,
Needs vs. Wants, & Goal Setting Unit Setting Financial Goals
Slide 23 Funded by a grant from Take Charge America, Inc. to the
Norton School of Family and Consumer Sciences at the University of
Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs
Developing a plan for eventual independence Preparing for career
Evaluating future financial needs and resources Exploring financial
systems banks, etc. Developing a personal system of record keeping
High school: 13-17 People in certain age groups tend to have
similar financial life cycle needs 24. Family Economics &
Financial Education Revised April 2011 Values, Needs vs. Wants,
& Goal Setting Unit Setting Financial Goals Slide 24 Funded by
a grant from Take Charge America, Inc. to the Norton School of
Family and Consumer Sciences at the University of Arizona 1.17.3.G1
Traditional Age Group Financial Planning Needs Establishing a
household Training for a career Earning financial independence
Determining insurance needs Establishing credit Establishing
savings Creating a spending plan Begin investing in retirement
Developing a personal financial identity Young adult: 18- 24 25.
Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 25 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs
Child-bearing Child-raising Expanding career goals Investing in
retirement Managing increased need for credit Discussing and
managing additional insurance needs Creating a will Starting an
education fund for children Adult with or without children: 25-34
26. Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 26 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs
Upgrading career training Developing protection needs for
head-of-household Investing in retirement Establishing retirement
goals Building on childrens education fund Need for greater income
due to expanding needs Working parent or adult: 35- 44 27. Family
Economics & Financial Education Revised April 2011 Values,
Needs vs. Wants, & Goal Setting Unit Setting Financial Goals
Slide 27 Funded by a grant from Take Charge America, Inc. to the
Norton School of Family and Consumer Sciences at the University of
Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs
Assisting with higher education for children Investing in
retirement Updating retirement goals and plans Developing estate
plans Midlife: 45-54 28. Family Economics & Financial Education
Revised April 2011 Values, Needs vs. Wants, & Goal Setting Unit
Setting Financial Goals Slide 28 Funded by a grant from Take Charge
America, Inc. to the Norton School of Family and Consumer Sciences
at the University of Arizona 1.17.3.G1 Traditional Age Group
Financial Planning Needs Consolidating assets Re-evaluating
property transfer Investing in retirement Evaluating expenses for
retirement and current housing Planning future security
Investigating retirement part-time income or volunteer work Meeting
responsibilities of ageing parents Planning for long-term care
insurance and medical care in retirement Pre- retirement: 55-64 29.
Family Economics & Financial Education Revised April 2011
Values, Needs vs. Wants, & Goal Setting Unit Setting Financial
Goals Slide 29 Funded by a grant from Take Charge America, Inc. to
the Norton School of Family and Consumer Sciences at the University
of Arizona 1.17.3.G1 Traditional Age Group Financial Planning Needs
Re-evaluating and adjusting living conditions and spending as
related to health and income Adjusting insurance programs for
increasing risks Finalizing will or letter of last instructions
Acquiring assistance in management of personal and financial
affairs Finalizing estate plans Retired: 65 and older
