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 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

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Values

Wants

Goals Needs

Financial Literacy

VALUES, NEEDS, WANTS, AND GOAL SETTING

ESSENTIALS

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 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

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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?

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 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

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VALUES

What influences a person’s

values?

Religious affiliations

Family

Teachers

Friends

Law

Media Work/ Career

Life Experiences

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

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 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 because we make financial decisions based on what we feel is important (our values), or perceive as a want or a need

Values

Wants

Goals Needs

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 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

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IMAGINE

What would the world be like if everyone had

the same values?

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 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

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NEEDS vs. WANTS

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

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 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! •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!

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 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

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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

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 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.G1 HOW DO VALUES, NEEDS, WANTS AND GOALS RELATE TO FINANCIAL DECISIONS?

Decisions Financial Decisions Values

Wants

Goals Needs

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 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

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 taking more than one year to accomplish

Short-term goals can be accomplished in less than one year

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 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

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 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 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.

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 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

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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 –How are you going to reach the goal?

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 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?

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

each month for one year.

Measurable –What is the total you want to save?

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 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

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WHAT IS MISSING?

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

for 2 years.

Specific –What are you saving the money for?

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 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

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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 – When will the goal be reached?

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 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

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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 – It is not realistic to save your whole

paycheck

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 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

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WHY IS IMPORTANT TO WRITE SMART GOALS?

Practice writing SMART goals!

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 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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SUMMARY

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

Values

Wants

Goals Needs

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 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

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SUMMARY

Values guide a person’s needs, wants and goals

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

spend money on things we value • Goals should be written down as SMART goals

– Specific, measurable, attainable, realistic, and time bound