Unit 1

A plan that contains personal financial goals you want to accomplish.

A formal process of looking at your current situation and thinking about your future.

Will require long-term commitment.As with any plan, you will put it into

action and monitor it periodically.

Some people will want to create their own plan and others may use a financial planner.

Financial Planner – Professional trained to provide advice about how to invest earnings, plan for retirement, and manage other financial matters.

Goal – the end result of something a person intends to acquire,

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

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

Financial goals – specific objectives to be accomplished through

financial planning

Education goals - enable individuals to

prepare for future success in the workplace

Education goals - enable individuals to

prepare for future success in the workplace

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 school year by going to the writing lab and having my research paper reviewed prior to turning it in.

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

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

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

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

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.

Find the missing element (specific, measurable, attainable, realistic, or time bound) in the following financial goals

Financial Goal #1 As a senior in high school, I plan to save

$5,000 for college living expenses in four years.

Financial Goal #1 Answer:

Attainable

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.

Financial Goal #2 Answer:

Measurable

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.

Financial Goal # 3 Answer:

Specific

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

Financial Goal # 4 Answer:

Time Bound

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

Financial Goal # 5 Answer:

Realistic

Your financial plan represents your personal financial goals at one point in time.

Those goals are likely to change over time. For example, you may inherit money, or

you may have a job opportunity overseas, or you may wish to spend more time on a hobby or a side business.

The financial plan is a work in progress; it is never finished.

As one goal is accomplished, another personal goal is defined.

Beginning tomorrow you will write your own plan.

This project will give you the opportunity to think about your goals.

You will have 2 ½ days to complete this in the lab.

Next Monday and Tuesday we will present the plans to the class.

Thursday we will have our first quiz (25 questions).