1.1.2...make a choice. Because different people value different things, your opportunity costs may...
Transcript of 1.1.2...make a choice. Because different people value different things, your opportunity costs may...
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What is a routine decision you have made today?
A decision is a choice
that affects a person’s
life.
Two Types:
Routine
Major
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 3Funded 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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Routine Decisions
Are made on a day-to-day basis
Don’t require a lot of time to think through
They can become a habit in daily life
For example, deciding…
• What to wear in the morning
• What to pack for lunch
• Where to sit on the school bus
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 4Funded 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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Major Decisions
Have long-term effects on a person’s
life
Should be made very carefully and with a
lot of thought
For example, deciding…
• What type of car to buy
• To attend college or not
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 5Funded 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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Your Decisions
On your paper write decisions you have made in the
past week
Are they routine or major?
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 6Funded 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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Financial Decisions
A type of major decision
Impacts an individual’s or family’s well-being
• Well-being is the state of being happy, healthy, and prosperous
For example…
• Saving for a family vacation
• Spending money wisely
• Purchasing new items
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 7Funded 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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Impulse Purchases
An impulse purchase is a purchase made on a
whim, without using a decision making process.
FYI: Retail and grocery stores place small, inexpensive items
near the checkout because they know they will buy them on
impulse.
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 8Funded 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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Decision-Making Process
D • Define the problem
E• Explore the options
C • Check Alternatives
I • Identify possible solutions
D • Decide and take action
E • Evaluate and revise
Guides individuals
to think through
all components of
making a good
decision
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Steps1. Define the
ProblemKnow the problem or
question before
searching for an answer2. Explore The
Options
Choices?
3. Check Alternatives.
Brainstorm pros and cons
for all of the possible
choices
4. Identify Possible SolutionsThe best option for you.
5. Decide & Take ActionMake the best Choice
6. Evaluate & ReviseReflect to improve future choices
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 10Funded 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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Opportunity Cost
The value of your next best alternative whenever you
make a choice.
Because different people value different things, your opportunity
costs may not be the same as a friend’s may be.
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Ryan’s grandparents gave him $150.00 for his
birthday, but he is having trouble deciding what to
do with it. There are so many options for him to
choose from. He can put his money into a savings
account, he can buy a new phone, or he can buy
his best friend a birthday present and go to the
movies.
Help Ryan make a wise choice?
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© Take Charge Today – November 2014 – Making Wise Decisions – Slide 12Funded 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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So Many Choices!
There are many different options to choose when
making a decision
Every option has a consequenceWhat
opportunity
costs did Ryan
give up with each
possible choice?
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Benefits of Good
Decision Making
Making better
choices results in
better use of time,
money and other
resources
When decision
making skills
improve, quality of
life is enhanced
Your present
choices impact
your future life
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