© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 1

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

Family Economics and Financial Education

VALUES, NEEDS, WANTS, AND GOAL SETTING

ESSENTIALS

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 2

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS A VALUE?

•A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual

Family

Good health

Financial security A successful

and/or satisfying career

Honesty

Helping others

Religious commitment

Education

What are examples of values?

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 3

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

VALUES

Religious affiliations

Family

Teachers

Friends

Law

MediaWork/Career

Life Experiences

Are your values the same as the person sitting next to you?

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 4

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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VALUES

Values guide a person’s needs, wants, and goals

Values, needs, wants, and goals influence a person’s daily decisions

Decisions affect an individual’s financial situation

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 5

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

IMAGINE

What would the world be like if everyone had

the same values? Questions 1 and 2

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 6

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

NEEDS vs. WANTS

A need is something thought to be a

necessity or essential items required for life

A need is something thought to be a

necessity or essential items required for life

Examples of needs:•Food•Water•Shelter

Examples of wants:•Car stereo•MP3 player•Designer clothes

A want is something unnecessary but

desired or items which increase the quality of

living

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 7

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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NEED OR WANT?YOU DECIDE!

Questions 3 and 4

•Clothing

•Going to the movies

•Going out to eat

•A place to live

•A car/truck

• A computer• Owning an MP3

player• Cell phone• Owning a vacation

home• Food

Everyone has different interpretations of needs and wants.

This is based on…their personal values!

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 8

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS A GOAL?

A goal is defined as the end result of something a person intends to acquire,

achieve, do, reach, or accomplish sometime in the near or distant future

Identifying goals makes decision making easier

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 9

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1HOW DO VALUES, NEEDS, WANTS AND GOALS RELATE TO FINANCIAL DECISIONS?

Decisions FinancialDecisions

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 10

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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TYPES OF GOALS

Goals

Goals Questions

5-7

Financial goals are specific objectives to be accomplished through financial planning

Education goals enable individuals to prepare for future success in the workplace

Long-term goals are specified as more than one year

Short-term goals are specified as less than one year

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 11

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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SMART GOALS

SMART Goals

Specific

State exactly

what is to be done

Measurable

Include how the

goal can be measured

Attainable

Determine steps to

reach the goal

Realistic

Do not set goals for

something unrealistic

Time Bound

State when the goal

will be met

Financial and education goals should be SMART goals

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 12

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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SMART EDUCATIONAL 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 –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 13

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

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 –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 14

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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WHAT IS MISSING?

• Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals

• Financial Goal #1– I plan to save $5,000 for college living expenses in four

years.

Attainable

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 15

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS MISSING?

• Financial Goal #2– I plan to save for a new computer by saving $150

each month for one year.

Measurable

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 16

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS MISSING?

• Financial Goal #3– I plan to save $2,500 by saving $105 each month

for 2 years.

Specific

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 17

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS MISSING?

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

$75 from each paycheck.

Time Bound

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 18

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

WHAT IS MISSING?

• 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.

Realistic

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 19

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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WHY IS IMPORTANT TO WRITE SMART GOALS?

Practice writing SMART goals!

Question8

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 20

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

SUMMARY

A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individualA need is something thought to be a necessity or essential items required for life. Examples include food, water, and shelterA want is something unnecessary but desired or items which increase the quality of livingA goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish

Values

Wants

Goals

Needs

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 21

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.17.2.G1

SUMMARY

Values guide a person’s needs, wants and goals

This influences a person’s daily decisions, which may affect their financial situation

• Goals should be written down as SMART goals– Specific, measurable, attainable, realistic, and time

bound