PowerPoint Presentation

Goal SettingMr. Stasa W-E City Schools

TYPES OF GOALSExamples of financial goals:Going to collegeBuying a houseBuying a carGetting marriedHaving childrenAbility to retireWhat are some financial goals that most people hope to achieve in their lives?

http://www.krmg.com/news/business/chipotle-plans-hire-4000-workers-one-day-sept-9/nnQZf/ The Importance of Goal WritingA study in What They Dont Teach You at Harvard Business School by Mark McCormack1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?" 3% had written goals and plans13% percent had goals, but they were not in writing84% percent had no specific goals at all

New Slide3And 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

New Slide4What is a goal?

A goal is anything you want to accomplish

Whats 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:Having goalsCreating a plan to achieve their goals

Make a planGabe 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 PlanningWhat is financial planning?Financial planning is preparing to spend, save, and invest your income.

70-20-10 Rule:Spend 70% of your incomeSave 20% of your incomeInvest 10% of your income

SpendSaveInvestTypes of GoalsShort-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. ExamplesWhats an example of a short-term goal?

Whats an example of an intermediate goal?

Whats 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 GoalWhat Type of Goal is this?Joses 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. Joses hoping to maintain at least a 3.5 GPA average all through high school.Intermediate GoalWhat 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 bachelors degree in business administration. Upon obtaining his bachelors degree Brady plans to immediately begin his masters degree in training and development. His masters will take a full year as long as he is a full-time student. Once Brady completes his masters degree he will officially be done with college.Long-term GoalGroup Consensus Forum1979- Students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?" 3% had written goals and plans13% percent had goals, but they were not in writing84% percent had no specific goals at all In spite of such proof of success, most people don't have clear, measurable, time-bounded goals that they work toward.Brian Tracy says there are four reasons why people don't set goals:What are FOUR reasons that you can think of why most people dont set goals and make a plan to accomplish them?

Personal and financial What are examples of personal goals that a typical teenager may want to achieve now or in their lifetime?

What are examples of financial goals that a typical teenager may want to achieve now or in their lifetime?

GOALS PART #2A need is something you must have to survive.

A want is something you would like to have, but could survive without.Needs & Wants

What are examples of needs?

What are examples of wants?What are Examples of Needs & Wants?

You Decide!Car

Nike Shoes

Computer

Food

Abercrombie shirt

Cell Phone

S.M.A.R.T. GoalsSpecific MeasurableAttainable RealisticTime Bound

https://www.youtube.com/watch?v=55vkNU_p2iA

SPECIFICState exactly WHAT must be accomplished.

BAD EXAMPLE: I want to set a world record on swimming a long distance.

GOOD EXAMPLE: I will swim from Havana, Cuba to Key West, Florida non-stop without the assistance of a shark cage, but with the assistance of a jellyfish mask, body suit, and gloves at the age of 64.MeasurableWrite the exact outcome or dollar amount.

BAD EXAMPLE: I will set a world record by swimming a very long distance

GOOD EXAMPLE: I plan to swim 110 miles from Havana, Cuba to Key West, Florida within 4 to 5 days at the age of 64.

AttainableExplain exactly HOW the goal will be reached.

BAD EXAMPLE: Ill be able to swim a very long distance if I practice.

GOOD EXAMPLE: With the extreme training, determination, and with the assistance of a 35-person team, a jellyfish mask, body suit, and gloves, I will swim from Havana, Cuba to Key West, FloridaRealisticDecide if your goal is a real possibility for you to achieve.

BAD EXAMPLE: I know how to swim, therefore, I will be able to swim from Cuba to Florida.

GOOD EXAMPLE: I have the determination, the support, the vision, the practice, and endurance to swim 110 miles from Cuba to Florida at the age of 64. Do you have the WILL and the DRIVE to get it done?Time BoundSpecifically state when the goal will be reached.

BAD EXAMPLE: I will swim from Havana, Cuba to Key West, Florida during my lifetime.

GOOD EXAMPLE: At the age of 64, I will swim from Havana, Cuba to Key West, Florida beginning on August 31, 2013 and will reach my destination within 4 to 5 days.4 SMART Questions to be answered within each smart goalWhat:What do I want to accomplish?How: How will I accomplish my goal?When:Establish a time frame.Why:Purpose or benefits of accomplishing the goal.

I want to save $2,400 for a down payment on a new car by placing $200 into my savings account each month for the next 12 months so that I no longer have to spend money on car current repairs.Whats missing?Troy is going to save $17,000 for his first year of college. He will need to achieve his goal of $17,000 by August of 2018 He plans to major in computer graphics design so that he can eventually work at TIME Magazine. Scenario #1HOW?Whats missing?Melissa wants to purchase a house by the time shes 30. She is going to invest her savings buy purchasing 180 shares of Lincoln Electric at $34 per share. Melissa plans to purchase these shares today In hopes they will double , if not triple, by age 30. Scenario #2WHY?Whats missing?Kate just got her temps and wants to purchase a car for under $6,000 using her savings. She plans to look on Craigslist and local dealers for a used but well-maintained car. If she buys a car she will no longer have to ask family and friends to take her places, and she can get to work on her own.Scenario #1When?Goals Part #3An opportunity cost is the option you give up to get something else.

Chuck decides to spend $200 towards a new iPhone rather than save $200 towards college.

What is Chucks opportunity cost?The amount of money saved towards college.Opportunity CostsMegan won two tickets to a Lady GaGa concert tonight, but she knows theres a big Chemistry test Friday morning during 1st period. Megan must choose whether to go to the concert, study for the test, or somehow do both.

If Megan chooses to go to the concert, what is her opportunity cost?

Megan is giving up a decent grade she could get on her test had she chose to stay home and studied. Opportunity Costs

Darleen doesnt know whether to go to Chipotle after school with friends or if she should fill out applications for a part-time job. Darleen chooses to fill out job applications instead.

What is Darleens opportunity cost?The food and fun she could have at Chipotle with her friends.Opportunity Costs

Major DecisionsMajor decisions have long-term effects that should be thought through carefullyWhat are some major decisions you have made in your life?Whether to get your drivers licenseWhether to go to collegeBuying a new carGetting a job

Gloria has had the goal of going to homecoming since last fall. She just accepted Seans invitation to go to homecoming with him. Gloria just realized she now has expenses coming up in the next several weeks to prepare for. She must buy a dress and pay to get her hair done. Sean has agreed to pay for her ticket and dinner. Gloria only has $20 in her savings account. How will she pay for her dress and hair appointment? Think of a plan that Gloria can use. Lead-in

FourDecision- Making Steps#1 Identify the ProblemIn the form of a question.

i.e. Should I go away to college, or go to a local college where I can live at home?Step #1

#2 List the Pros and ConsPros:Meet new friendsLearn responsibilityLive on my ownConsSpend more money and save lessDo my own laundry

Step #2#3 Decide!Im going to go away to collegeI may need to save money and get a job, but Ill enjoy the time with my friends.Step #3

#4 Evaluate Results AfterwardsBy going away to college I learned how to pay my own bills, make my own meals or at least buy them, how to make decisions on my own, made a lot of new friends, and have learned how to live on my own.

Step #4