GOAL SETTINGPART 1

Mr. Stasa

W-E City Schools ©

INTRODUCTION QUESTIONS

What is a goal? What is the benefit of setting a goal? Is it necessary to write a goal for each

decision you make? What’s an example of a decision that

may not require a goal to be written out for?

What’s an example of a decision that does require a goal to be written out?

TYPES OF GOALS

Examples of financial goals: Going to college Buying a house Buying a car Getting married Having children Ability to retire

What are some financial goals that most people hope to achieve in their lives?

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

AND WHAT ABOUT THE 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

WHAT IS A GOAL?

A goal is anything you want to accomplish

What’s an example of a goal you might have for personal finance class? I.e. Getting an “A” in Personal

Finance class

HOW DO I BECOME FINANCIALLY SUCCESSFUL?

People become financially successful by doing two things:1. Having goals2. Creating a plan to achieve their

goals

MAKE A PLAN…

Gabe has wanted an iPhone 5s which will cost him $800 for a 64 GB. His family is willing to help by giving him $50. Gabe has $200 in savings.

What is a step-by-step plan that Gabe can follow to raise the rest of the cost?

Ask yourself the following questions…

Achieve This!

FINANCIAL PLANNING

What is financial planning? Financial planning is preparing to spend, save,

and invest your income.

70-20-10 Rule: Spend 70% of your income Save 20% of your income Invest 10% of your income

FINANCIAL PLANNING

Spend Save

Invest

TYPES OF GOALS

Short-term goals are to be achieved in less than one year.

Intermediate goals are to be achieved in two to five years.

Long-term goals take more than five years to achieve.

EXAMPLES

What’s an example of a short-term goal?

What’s an example of an intermediate goal?

What’s an example of a long-term goal?

WHAT TYPE OF GOAL IS THIS?

Tanner and his five friends are hoping to go to Cancun this spring for spring break. He knows that each person will need to save at least $1,000 for a flight, hotel, and spending.

Short-term

Goal

WHAT TYPE OF GOAL IS THIS?

Jose’s been wanting to get into The Ohio State University since he was in fifth grade. He just began high school this week as a freshman and knows that his grades are what will make or break his opportunity to get into college. Jose’s hoping to maintain at least a 3.5 GPA average all through high school.

Intermediate

Goal

WHAT TYPE OF GOAL IS THIS?

Brady is a junior in high school beginning to plan out his future after high school. Brady plans to attend The Ohio State University to obtain his bachelor’s degree in business administration. Upon obtaining his bachelor’s degree Brady plans to immediately begin his master’s degree in training and development. His master’s will take a full year as long as he is a full-time student. Once Brady completes his master’s degree he will officially be done with college.

Long-term

Goal

FOCUS QUESTION:

What is a short-term goal?

What is an intermediate goal?

What is a long-term goal?

WHAT WOULD YOU DO? What is a consequence of setting a goal without a plan to achieve

the goal?

For example: Dave is a senior in high school and has determined to own a house by age 23. Once Dave is 23, he has no money saved or an idea of how much of a house he can afford. He’ll be staying with his parents until he can figure out a plan.

What could Dave have done between high school and age 23 to ensure he could own his house?

Create a plan for Dave to guarantee he can own his house by age 23 using financial and personal goals.

CLASS EXAMPLE You’re a senior in high school and has determined to own

a house by age 23. Once you’re 23 you’ve never created a plan, you have no money saved or an idea of how much of a house you can afford. You’ll be staying with your parents until you can figure out a plan.

Complete the personal goal by creating one personal goal to follow, two financial goals, steps to take (at least 4), and a timeline.

PERSONAL GOALS FINANCIAL GOALS STEPS TO TAKE TIMELINE 1. Be able to afford my own house by age 23. 1a.

1. 2.

1. 2. 3. 4.

What are potential consequences of not creating and sticking to a plan to own your own house by age 23?