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Setting Financial Goals

“Take Charge of Your Finances” 1.17.3

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Shake Out My Future Activity Complete the Shake Out My Future worksheet

1.17.3.A1 For each category, roll the die to determine

what your final outcome would be Roll the die and cross out the number that is

rolled For example: In the housing category if you roll a 2 you

would cross out the word “Mansion” Continue until you have rolled the die enough

times to have only one option remaining. This will be your final outcome for that category

Record your final outcome in the box next to the category and answer the reflection question

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Letter Write a letter to yourself about

what you envision your life will be like in five years.

Examples of items you may write about include: Education Career Family Money

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Goals

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Goals Short-term goals – specified as less than one year

I plan to raise my English grade from a C+ to a B by the end of this academic year by asking my older brother to peer review my research paper prior to turning it in.

Underline events in your letter that can be achieved with a short-term goal.

Long-term goals – specified as more than one year By the end of the next academic year I would like to

purchase my first car by saving $50 per month from my part time job.

Put parentheses around events that can be achieved with a long-term goal.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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The Importance of Goal Writing A study in What They Don’t 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

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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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.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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SMART Goals

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Education Goals Help individuals prepare for success in

the workplace Examples include:

Earning an A on an upcoming quiz Attending college Participating in extra-curricular activities

Include both short-term and long-term goals

Provide guidance and direction Enable individuals to reach financial goals

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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SMART Education Goals

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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SMART Education Goal Goal – “I want to attend college.” SMART goal –

Specific – I want to attend a four year college Measurable – Because I want to attend a four year

college, I will earn a B in algebra Attainable – Because I want to attend a four year college,

I will earn a B in algebra this semester Realistic – 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

Time Bound – 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 in high school

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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SMART Financial Goals

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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SMART Financial Goal Goal – I want to buy a new car SMART goal –

Specific – I plan to save for a down payment on a new car Measurable – I plan to save $5,000 for a down payment

on a new car Attainable – I plan to save $5,000 for a down payment

on a new car by saving $200 from every paycheck Realistic – It is realistic to save $200 from each paycheck

for a down payment on a car because I usually waste the money on unnecessary items instead of saving it

Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Find the missing element (specific,

measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #1 I plan to save $5,000 for college living

expenses in four years.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 15Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Financial Goal #1 Answer:

Attainable

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 16Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Find the missing element (specific,

measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #2 I plan to save for a new computer by

saving $150 each month for one year.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 17Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Financial Goal #2 Answer:

Measurable

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 18Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Find the missing element (specific,

measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #3 I plan to save $2,500 by saving $105

each month for 2 years.

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 19Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Financial Goal # 3 Answer:

Specific

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 20Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Find the missing element (specific,

measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #4 I plan to save $1,500 to buy a used car

by saving $75 from each paycheck

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 21Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Financial Goal # 4 Answer:

Time Bound

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 22Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Find the missing element (specific,

measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #5 I plan to save $2,000 to pay for a new

computer by saving my whole paycheck for the next 6 months

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 23Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is Missing? Financial Goal # 5 Answer:

Realistic

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 24Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Conclusion Review the following:

Goals Financial goals Short-Term goals Long-Term goals SMART goals

Questions?

© Family Economics & Financial Education – Revised April 2010 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 25Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Practice Writing Smart Goals Get into groups of 2-3 to practice writing a

group SMART education and financial goal on your Goal Setting note taking guide 1.17.3.L1.

Write one SMART education goal and one SMART financial goal for yourself on your Goal Setting note taking guide 1.17.3.L1.

Share your goals with your group. Have your group provide constructive feedback to ensure goals have all of the elements of well written goals.

Based upon feedback from your group, edit your goals.