financial planning is a thought process, based on what

1For more program resources, visit hsfpp.nefe.org.

Your Financial Plan: Where It All Begins

Financial planning is a thought process, based on what each of us

considers most important. What do we want to achieve in life? What do

we want to be, do, and have? A financial plan helps us identify the end

result we want, figure out how to get there, and stay on track to achieve it.

Materials you will need for this unit:

NEFE High School Financial Planning Program Student Guide: Unit 1 — Your Financial Plan: Where It All Begins

Unit 1 Teaching Plan

Unit 1 Overview

Presentation Visuals: Unit 1 Visuals.xls; Unit 1 Visuals.ppt; Unit 1 Visuals.pdf

Envelopes for Assignment 1-3

Assignment 1-1

SMART Goals chart for Assignment 1-1

Assignment 1-2

Assignment 1-3

Assignment 1-4

Assignment 1-5

Assignment 1-6

Financial Planning Process cards for Assignment 1-6

Assessment 1-1

Assessment 1-2

Access to Internet

Unit 1 Newsletter Article

UNIT ONE: Instructor’s Manual2

Goal setting is the foundation of the financial planning process. We begin with learning the difference between needs and wants. Becauseresources are limited, we must learn to prioritize ourgoals—and needs usually come first. It’s OK tohave wants. Wants often motivate us to succeed.The key is being able to distinguish between a wantand a need and to use that understanding when wemake important choices and decisions.

Decision making plays an important role in thefinancial planning process. We must make choicesin order to maximize our ability to accomplish ourgoals with limited resources. There’s a set processto making effective decisions, which we may not even realize we’re using. Of course, some decisions will create the need to make even more decisions.

A value is a belief or idea we consider important ordesirable. Many factors come into play in shapingour values, which vary from person to person. Infact, our values will most likely change as we growand change. But values have a lot of influence onour goals and decision making.

Goals are accomplished by applying the ongoing,five-step financial planning process represented bythe graphic in PowerPoint Visual 1-B (The Five-StepFinancial Planning Process).

That process is:

It is essential for the students to understand severalthings about decision making. First, many decisionsinvolve trade-offs, sacrificing one option right now

in order to achieve another. Second, many personaland financial decisions made today will affect

decisions in the future. Finally, each decision carrieswith it related consequences that affect us, other

people, and the world around us. However, we canbecome skillful decision-makers through practice.

In the end, you have to follow your financial plan inorder for it to work. So it’s important to consider

ways to motivate yourself to stick with it. It’s equallyimportant to know when it’s time to modify and

update the plan. After all, a plan is not meant to beset in stone. Instead, it should be a living document

that evolves with us over time.

!


Teaching PlanUnit 1 Your Financial Plan: Where It All Begins

Total Time — 160 Minutes

Target Competency

Create a personal financial plan.

Learning Objectives

a Examine the value of having a process of planning how to use money

b Create personal financial SMART goals

c Analyze how money is received and used

d Use the decision-making process to create a financial plan

e Identify guidelines to implement a personal financial plan

f Monitor and modify a personal financial plan

Teaching Plan Activities

Minutes

2

3

0

5

5

Teaching Activities

Hand out the Student Guide and introduce the NEFEHigh School Financial Planning Program (HSFPP) to the students. Explain that by the time they complete theHSFPP, they will be able to develop their own, very basic financial plan.

Preview Unit 1 with the students by reading page 1.Point out that they will use the information learned andpracticed in this unit to create their own personal financial plan using the guidelines stated on page 14. Optional: Copy and distribute the Unit 1 Overview (page 8) to preview what the students will learn and what assignments will be submitted throughout the unit.

Assign students to read pp. 1–6 in advance to preparefor class presentation and exercises.

Arrange students in pairs to respond to the statements inthe What Do You Think? section. Discuss their answersbriefly as a class as you share the correct answers.What did they find most surprising or interesting in the statements?

Show PowerPoint Visual 1-A, Fail to Plan. Briefly discuss how a financial plan can be an important tool inhelping achieve goals.

Show PowerPoint Visual 1-B, The Five-Step FinancialPlanning Process. Point out that the students will practice the steps of the process and then apply theprocess to create their own financial plan.

Student Learning/Assessment Activities

Read page 1 to preview what you will learnabout and do in this unit.

Read the scenarios on page 2 to think about reasons why teenagers spend orsave money.

Work with a partner to complete the What Do You Think? questionnaire.Check your answers after you completethe unit activities.

View a presentation about the financialplanning process and how wants andneeds impact the process.


Minutes

0

10

10

10

10

0

Teaching Activities

Assign students to read pp. 2–13 in advance to preparefor class presentation and exercises.

Facilitate the Polarity Activity on page 13 for the students to make decisions about whether an item is aneed or a want.

Show PowerPoint Visual 1-C, Sample Wants andNeeds (editable version in Excel format is available onthe Instructor’s Manual CD and HSFPP Web site). Brieflydiscuss what factors determine when an item is a needrather than a want and vice versa. Direct students towork individually to complete Exercise 1A, Needs andWants, on page 4 and then discuss their responses withpartners. What did they find interesting about their part-ners' lists? Show PowerPoint Visual 1-D, Values(editable version in Excel format is available on theInstructor’s Manual CD and HSFPP Web site), and brieflydiscuss how people define needs and wants differentlydepending on their own values. Ask students to giveexamples of what influences a person's values.

Show PowerPoint Visual 1-E, Term Goals, and discussthe difference between short-, intermediate-, and long-term goals. Ask for examples of each type of goal. Show PowerPoint Visual 1-F, Delayed Gratification, anddiscuss the benefits of delaying a purchase. Ideas toconsider: saving for a down payment on a car, waiting tobuy a video game when the price is discounted. Allow students time to complete Exercise 1B, HowLong Will It Take?, on page 5. Discuss why responsesmay vary from student to student.Show PowerPoint Visual 1-G, S-M-A-R-T Goal Criteria,and explain how the criteria help a person manageresources to achieve goals. Show PowerPoint Visual 1-H, SMART Goals, to showexamples. Also reference the examples on pages 5 and7. Discuss the value of listing measurable and realisticobjectives that will lead to realizing the goal.

Guide students to work in pairs to complete Exercise1C, Are the Goals SMART?, on page 6. Remind students that each statement should meet the SMARTcriteria. Arrange for students to share their rewordedgoal statements either with another group or with thewhole class.

Optional: Assign students the option of describingSMART goals for a school organization or event using theAssignment 1-1 chart as a guide. (See SupplementaryMaterials—SM1-1.)


Read pp. 2–13 to learn about the fivesteps of the financial planning process.

Complete the Polarity Activity on page 13to consider how your classmates classifywants and needs.

Complete Exercise 1A, Needs andWants, on page 4 to classify wants and needs.

Complete Exercise 1B, How Long Will ItTake?, on page 5 to categorize samplegoal statements as short-term, intermediate, or long-term goals.

Complete Exercise 1C, Are the goalsSMART?, on page 6 to analyze samplegoals for SMART criteria. Note what ismissing or needs to be clarified.

Optional: Develop SMART goals for afamous person or a school organization.


Minutes

0

0

0

0

5

5

10

0

0

10

Teaching Activities

Optional: Direct students to assess sample goals andrevise the goals to comply with SMART criteria. (See Supplementary Materials—SM1-2.)

Optional: Guide students to complete the Values SurveyActivity. (See Supplementary Materials—SM1-3.)

Distribute and assign Assignment 1-1, My SMARTGoals, to be completed in class or as homework by adue date.

Distribute and assign Assignment 1-2, 30-DayCountdown to Goal. Direct students to establish ashort-term goal. The students should keep a copy of thegoal and submit a copy to the instructor so progress canbe checked in one month. Make a note on your calendarto check the status of students’ goals in 30 days.

Ask the students to write down their best guesses of thetotal amount of money they spent in the last week. Do they think this is typical or unusual for a typical teenage lifestyle?

Guide the students to read about teen spending statisticsin the Did You Know? feature on page 9. What was asurprise? How does the book list compare to the individual student lists?

Show PowerPoint Visual 1-I, Spending Record, to showan example of a spending record. Discuss the value oftracking cash flow to know exactly what money isreceived and what is spent. Facilitate a discussion to create a master list of potentialsources of money that a teenager might receive. Create a second master list of ways teenagers spendmoney. How might either list change for the studentswhen they are in their early 20s?

Optional: Arrange for students to access spreadsheetsoftware to track spending. A spreadsheet shell is available on the Instructor’s Manual CD and HSFPP Web site.

Distribute and assign Assignment 1-3, My PersonalSpending Log. Establish that the students keep a recordfor either a week or month. Tip: Give the studentsenvelopes to collect receipts and to record expenditures.Inform the students that this information will be used inUnit 2 when they prepare a personal budget.

Show PowerPoint Visual 1-J, Factors That InfluenceDecision Making, and discuss factors that might impact teen decisions. Show PowerPoint Visual 1-K, Decision-MakingProcess, and discuss the steps of making a decision.Reference the movie example on page 9.Show PowerPoint Visual 1-L, Decision Making andFinancial Planning, to compare the two processes. What is similar? How are the processes different?Show PowerPoint Visual 1-M, Know What You Want, togive examples of criteria used to make a decision.Criteria can be identified by considering personal needs and wants.


Optional: Assess sample SMART goals andgive advice to clarify the goals.

Optional: Complete the Values Survey Activity to examine personal values.

Complete Assignment 1-1, My SMARTGoals, to create at least three personalfinancial SMART goals (short-term,intermediate-term, and long-term).

Complete Assignment 1-2, 30-DayCountdown to Goal, to check yourprogress in achieving a short-term financial goal.

Think about how you spent your money inthe past week, and write down your bestguess of the total amount you spent.Examine statistics of how the averageteenager spends money.

Read the Did You Know? feature on page 9. How do the study statistics compare with your statistics?

Participate in a discussion about howmoney is received and spent. Generate alist of potential sources of money that ateenager might receive. Generate a list ofways money might be spent by teenagers.

Optional: Use software to create a spreadsheet to track your spending.

Complete Assignment 1-3, My PersonalSpending Log, to log your personal spending for a week or month.

View a presentation about the decision-making process.


Minutes

5

5

15

10

10

0

10

0

Teaching Activities

Arrange students in teams of two or three to completeExercise 1D, What Should Rob Do?, on page 10.Emphasize the value of identifying criteria before considering options to narrow down choices. As timeallows, invite teams to share their responses with anotherteam or with the whole class.

Explain how one decision can bring about the need tomake additional decisions known as “satellite decisions.” Guide the students to complete Exercise 1E, SatelliteDecisions, on page 10 with a partner or in teams.

Arrange for students to work in pairs as they completeExercise 1F, Deciding to Buy a Car, on page 11.Reinforce that they should identify their criteria beforeconsidering any options.

Optional: Direct the students to create a satellite decisionchart related to buying a car or another major decisionthat was made recently.

Optional: Copy and distribute the Decision-MakingCheck Quiz. Check the answers in class, and clarify anyquestions from students. (See Supplementary Materials—SM1-4.)

Distribute and assign Assignment 1-4, Decisions,Decisions, to be completed in class or as homework bya due date. Encourage the students to use a criteria andoption chart similar to the chart in Exercise 1D.

Facilitate a discussion to identify potential roadblocksthat might hinder a person's ability to carry out a financial plan. Brainstorm (small groups or whole group)strategies to avoid or prevent the roadblocks.Show PowerPoint Visual 1-N, Reality, Responsibility,Restraint, and discuss the reality that resources are limited. Discuss the benefits of responsible financialplanning rather than taking on the consequences of nothaving a plan. Point out the value of restraint and self-control. Show PowerPoint Visual 1-O, Saving,Spending, Sharing, and discuss the value of saving for a“rainy day,” spending within or below your means, andsharing with others.

Optional: Arrange students into teams, and guide them tocreate brief skits or formal presentations to reinforce anyof the financial planning concepts learned in this unit.Schedule time for the teams to present their skits or presentations to the class or another student group.


Work with a partner to complete Exercise1D, What Should Rob Do?, on page 10.List decision criteria and options to helpRob make a decision.

Work with a partner to complete Exercise1E, Satellite Decisions, on page 10 to listitems that will be linked to a decision to see the Macy's Thanksgiving Day Parade®

in person.

Work with a partner to complete Exercise1F, Deciding to Buy a Car, on page 11.Identify your criteria before considering any options.

Optional: Create a satellite decision chart toidentify decisions that might result frombuying a car or another major decision thatwas made recently.

Optional: Complete the Decision-MakingCheck Quiz.

Complete Assignment 1-4, Decisions,Decisions, to show how you used the decision-making process.

Participate in a discussion to identify potential roadblocks that might hinder aperson's ability to carry out a financial plan.Brainstorm ways to avoid or prevent the roadblocks.

Optional: Work with a team to create ashort presentation that demonstrates howto improve the chances of making good financial decisions.


Minutes

0

5

10

5

0

0

0

0

0

0

Teaching Activities

Distribute and assign Assignment 1-5, FinancialPlanning Strategies, to be completed in class or ashomework by a due date.

Facilitate a discussion about how a financial plan willevolve and need to be adapted during a person's lifetime. Seek input from students to identify events thatwill impact a person's financial situation.

Facilitate the Mock Family Events Activity on page 21.

Facilitate Assignment 1-6, Financial Planning ProcessSteps. (available in Instructor’s Manual print materials)

Optional: Copy and distribute case studies for studentsto respond to. (See Supplementary Materials—SM1-5.)

Optional: Arrange for students to work independently orin pairs to complete the online simulation on the HSFPPWeb site.

Distribute and assign Assessment 1-1, My FinancialPlan, to be completed independently by a due date.Preview the directions and scoring guide (Appendix A) tohelp the students plan their work. Use this assessment toassess the students’ ability to perform the unit targetcompetency. As an alternative assessment, an objective test,Assessment 1-2, Evaluation, is available on theInstructor’s Manual CD and in the SupplementaryMaterials (see SM1-6).

Optional: Assign students to use skills learned and practiced in this unit to create a financial plan for aschool club or community organization.

Copy the Unit 1 newsletter article to distribute to parentsor via a school newsletter. (available on the Instructor’sManual CD)

Encourage students to work with their parents to usewhat they have learned about the decision-makingprocess to make a financial decision that impacts the family.


Complete Assignment 1-5, FinancialPlanning Strategies, to recommend strategies to stick to a financial plan.

Participate in a discussion about how financial plans will evolve during a person's lifetime.

Work in a team to brainstorm ideas toadjust a financial plan for a mock family situation.

Work with a partner to completeAssignment 1-6, Financial PlanningProcess Steps. Arrange the steps of thefinancial planning process in the correctorder. Take turns explaining to each otherthe significance of each step.

Optional: Respond to a case study to recommend strategies to monitor andadjust a financial plan.

Optional: Complete the Unit 1 SuccessStreet Sweep.

Outline your own financial plan, usingAssessment 1-1.

Optional: Create a financial plan for aschool club or community organization.

[Taking it Home] Read a newsletter articleto learn about tips for the financial planning process and decision making.

[Taking it Home] Use the decision-makingprocess to make a financial decision related to the family.


Unit 1 Your Financial Plan: Where It All BeginsUnit Overview

Check your progress as you complete the unit assignments and assessments:

Due Date Description Points

Assignment 1-1 My SMART Goals ____/10

Assignment 1-2 30-Day Countdown to Goal ____/10

Assignment 1-3 My Personal Spending Log ____/10

Assignment 1-4 Decisions, Decisions ____/10

Assignment 1-5 Financial Planning Strategies ____/10

Assignment 1-6 Financial Planning Process Steps ____/10

Assessment 1-1 My Financial Plan ____/50

Assessment 1-2 Evaluation ____/50

In this unit, you will begin your journey toward savvy money management by learning about the financial planningprocess. People who “have it all” didn’t get there by accident. They made a financial plan and followed it. Soyou will use what you learn to create your own personal financial plan. Later, we’ll build upon this by discussing

other aspects of managing your money.

How can you use this in your life?You will use what you have learned in this unit to create your own personal financial plan.

In the process of creating your financial plan, you will . . .

… examine the value of having a process of planning how to use money

… create personal financial SMART goals

… analyze how money is received and used

… use the decision-making process to create a financial plan

… identify guidelines to implement a personal financial plan

… monitor and modify a personal financial plan

You will know you have succeeded when:

� Your financial plan includes at least one short-term SMART goal (zero to three months)

� Your financial plan includes at least one intermediate-term SMART goal (three months to one year)

� Your financial plan includes at least one long-term SMART goal (more than one year)

� Your financial plan includes a [week/month] record of how your money has been received and used

� You show your decision-making process to allocate your money

� You describe at least two factors that will impact your plan

� You list at least three strategies to use to follow your plan

� You explain how you will monitor your plan

Your Financial Plan: Where It All Begins

Have your parents ever refused to buy you some things you really wanted? Maybe they were new clothes, tickets to a show, or the latest electronic gadgets, and you just didn’t have enough money to buy them yourself?

Have you ever wanted to buy something big, like your own computer orcar? Or dreamed about becoming a multi-millionaire and retiring at 40?

It is possible for you to do all of these things if you get savvy about managing your money.

In this unit, you will begin your journey toward savvy money management bylearning about the financial planning process. People who “have it all” didn’tget there by accident. They made a financial plan and followed it. You willuse what you learn in this unit to create your own personal financial plan.Later, we’ll build upon this by discussing ways to follow it and other aspectsof managing your money.

1To learn more, visit hsfpp.nefe.org.

By the end of this unit, you will:

• Examine why it’s important to have a plan for your money

• Know what SMART goals are

• Analyze how you get and spend money

• Use the decision-making process to create your financial plan

• Identify guidelines to implement your financial plan

• Learn how to monitor and make changes to your financial plan


STUDENT GUIDE PG. 1

⌦ Procedure

Hand out the Student Guide and introduce theNEFE High School Financial Planning Program (HSFPP) to thestudents. Explain that bythe time they completethe HSFPP, they will beable to develop theirown, very basic financial plan.

Preview Unit 1 with the students by reading page 1. Point out that they will use the information learned and practiced in this unit to create their own personal financial planusing the guidelines stated on page 14.

Optional: Copy and distribute the Unit 1Overview (page 8) topreview what the students will learn andwhat assignments will besubmitted throughout the unit.

Although he doesn’t have his license yet, Josh hasalready picked out the sporty red coupe he wantswhen he turns 16 next year.

It’s more than his parents want to spend though, and they’ve said it won’t happen unless he can come up withthe difference.

As Maria studies for her SAT tests, she is thinkingabout her first year of college.

She knows her parents haven’t saved much money for her college expenses, so she decides to save at leasthalf of her paychecks from a summer job as a lifeguardso she has money to spend when she goes to school.

Jaime, age 16, wants a new video game system to

play with his friends.

He has saved two months’ worth of pay from his part-time job and is ready to go to the store and buy it.

What do all these students have in common?

They’re managing money to get something they want. And they may not realize it, but they’re also using sometype of plan to make it happen. That’s what this unit isall about—how to make a financial plan that helps youmeet your goals.

What Do You Think?With a partner, indicate whether each statement is True or False:

Teens get most of their money from part-time jobs.1

Most teens who are 18 or 19 years old have a checking account.1

Ninety percent of high school students rely on their parents for information about money.2

On average, American teens spend more than $10 billion a year.1

1Teen Research, Inc., 2 National Retail Federation

?

UNIT ONE Your Financial Plan: Where It All Begins2


STUDENT GUIDE PG. 2

ANSWER KEY:

1. False. 55% of teens get money from their parents, 43% from gifts, 28% from odd jobs, 25% from a part-time job, 21% from an allowance, 6% from a full-time job, 2% from their own business. Teen Research, Inc.

2. True. 64% of teens 18–19 years of age have a checking account. Teen Research, Inc.

3. True. National Retail Federation

4. False. A recent survey showed that American teen spending exceeded $169 billion in one year. Teen Research, Inc.

⌦ Procedure

Assign students to readpages 2–13 in advanceto prepare for class pres-entation and exercises.

Arrange students in pairs to respond to the statements in the What Do You Think? section. Discuss their answers briefly as a class as you share the correctanswers. What did theyfind most surprising or interesting in the statements?


If you’re going to run in a race, don’t you want to know

how long it is? Of course you do! You certainly don’t

want to start off too gung-ho and then be unable to

finish. If you know the race is a 10k and ends at the top

of a steep hill, you can plan your pace and even your

training accordingly. This is simply called beginning with

the end in mind—it helps you maximize your ability to

reach your goal. Many athletes take this technique a

step further by actually visualizing themselves crossing

the finish line at a certain time. Visualizing a mental

picture of your desired outcome can actually help you

attain it.

It’s rare that anyone has enough money to spend

on every single want. Studies show that even

multi-millionaires believe they need about twice what

they have to feel worry-free.1 So everyone has to make

choices and set priorities—a good financial plan helps

you through that process. For one, it makes you think

about your needs and wants.

Do You Need It or Do You Want It?

Let’s face it, sometimes we say we “need” things that

we actually don’t. Needs are the very basic things we

must have to survive. Wants are the things that make

life more interesting and fun, but you could live without

them if you had to. You need food to eat, but you want

to eat pizza out with your friends. You need a place to

live, but you want a TV in your room. You need some

clothes to wear, but you want those designer jeans.

Everyone has wants, but when your wallet is looking

thin, needs have to come first.

1PNC Advisors, 2004

What’s So Important AboutFinancial Planning?

Financial planning is a process of setting goals, devel-oping a plan to achieve them, and putting the plan intoaction. It’s creating a roadmap for handling everythingyou do with your money—spending, saving, using credit,and investing. People who are good at making and following a financial plan are able to live comfortably andbuy nice things without guilt or stress. But those whonever learn to plan often worry about having enoughmoney for the things they need and want.

Even though financial planning can have a big impact on

the quality of your life, it is actually pretty simple to do.

In fact, it boils down to five steps:

� Step 1Set SMART Financial Goals


STUDENT GUIDE PG. 3

⌦ Procedure

Show PowerPoint Visual 1-A, Fail to Plan. Briefly discuss how afinancial plan can be animportant tool in helping achieve goals.

Show PowerPoint Visual1-B, The Five-StepFinancial PlanningProcess. Point out thatthe students will practicethe steps of the processand then apply theprocess to create theirown financial plan.

� Discussion

Ask the following questions:

• What happens if you don’t meet a goal or accomplish it on time?

• What would you say to someone who says goal setting is a waste of time?

• Discuss the following quote: “If one does not know to which port one is sailing, no wind is favorable.” (Seneca).


Values are the beliefs and practices in your life that arevery important to you. So many things can influenceyour values—your parents, other family members,friends, your religion, things you read, and experiencesyou have. Your values may even change over time asyou learn and do new things.

The point is that you have a set of values. And theyaffect all the choices you make, including your choicesabout money. Maybe you believe it’s important todonate money to charity. Or maybe you’d rather havemoney in the bank than a new car of your own. Thesetypes of beliefs and practices reveal your values aboutmoney. Knowing what they are makes it much easier tocreate a plan for getting the things you really want.

Getting SMART About Your GoalsYou probably know that a goal is something you aim for. It’s something you want to be, do, or have at some future time. It points you in the direction you need to take. Achieving a goal gives you a sense ofaccomplishment, which spurs you on to setting newgoals for even bigger and better things. So learning toidentify and set clear goals is key to your success in life.

If one of your personal goals is to go to college the sameyear you graduate from high school, you know you haveto take the SATs, decide which schools to apply to, andmail applications by certain deadlines. Knowing whatyou’re aiming for makes it a lot easier to map out aprocess to see what you have to do to meet your goal.But if you don’t set the clear goal of going to college thesame year you graduate from high school, you couldeasily miss some of the things you need to do to meetyour goal.

Setting clear financial goals is also important. It’s easierto find the money for a June trip to Florida if you decidein January that this is what you want, then make a planto save for it, instead of trying to scrounge up the moneyto go at the last minute.

One thing you need to know about your goals is howlong you expect they will take to accomplish. Goals thatyou want to achieve within the next three months arecalled short-term goals. Goals that are set for threemonths to a year are called intermediate-term goals.Long-term goals are ones that it’ll take you more than ayear to achieve.

Exercise 1A:Needs and Wants:Can I Tell the Difference?

Write down five things you

spend money on. Then think

about each item and decide if it

is a need or a want by checking

the appropriate box. Examples

are given for you.

Need? Description Want?

� bread & eggs for breakfast

eggs to bake cookies �

� transportation to work

Compare your answers with those of your classmates. Do they agreewith your answers? Do you agree with how the examples are classified?Some classmates may have similar wants, and some probably listed thingsyou’d never want. Someone may have even listed one of your wants as aneed. It’s possible that you’re both right! That’s because people defineneeds and wants differently; they usually base them on their values.


STUDENT GUIDE PG. 4

⌦ Procedure

Facilitate the Polarity Activity on page 13 forthe students to makedecisions about whetheran item is a need or a want.

Show PowerPoint Visual1-C, Sample Wants andNeeds (editable versionin Excel format is avail-able on the Instructor’sManual CD and HSFPPWeb site). Briefly discusswhat factors determinewhen an item is a needrather than a want and vice versa. Arrange students in pairs torespond to the statements in the What Do You Think? section. Discuss their answers briefly as a class as you share the correctanswers. What did theyfind most surprising or interesting in the statements?

Direct students to workindividually to completeExercise 1A, Needs andWants, on page 4 andthen discuss theirresponses with partners.What did they find interesting about theirpartners’ lists?

Show PowerPoint Visual1-D, Values (editable version in Excel formatavailable on theInstructor’s Manual CDand HSFPP Web site),and briefly discuss howpeople define needs andwants differently depend-ing on their own values.Ask students to giveexamples of what influ-ences a person’s values.

� Discussion


• What are typical teenager short-term goals? Intermediate-term? Long-term?

• What factors might cause your short-term or intermediate-term goals to change?

Show PowerPoint Visual1-E, Term Goals, anddiscuss the differencebetween short-, interme-diate-, and long-termgoals. Ask for examplesof each type of goal.


SMART Goal Examples

Short-term:Save $25 by the 10th of next month to buy mom a birthday gift.

Intermediate-term:Save $10 a week for the nextsix months to buy a dress forprom.

Long-term:Save $2,000 from a summer jobfor the next three years for adown payment on a car.

Exercise 1B:How Long Will It Take? Look at the goals below. Consider how long it will take to meet thegoal—less than three months? Less than a year? More than a year?Categorize each goal by writing S (Short), I (Intermediate), or L (Long)next to the statement.

Save money to buy a birthday present for one of your friends whose birthday is next month.

Save money for your senior year school trip.

Buy new tires for your car.

Buy a new phone to replace your phone that is damaged.

Set aside money to pay your first semester of college tuition.

With longer-term goals, you have to be willing to give up something you want now to get something even better inthe future. That’s called delayed gratification. But so many Americans are in credit card debt because they optfor instant gratification—to buy something as soon as they see it. The problem with putting that new shirt on acredit card is that it will probably cost a lot more in the end, compared to saving money and paying for it in cash.

So there are other factors to consider when setting a clear goal. In fact, thebest goals aren’t just clear—they are SMART.

SMART Goal ExamplesSpecific. “I want to go to Panama City for Spring Break” is more specific than “I want to go somewhere

fun over Spring Break.”

Measurable. “I’ll need $150 for my share of the hotel room for the week” is measurable; “I want to save

a bunch of money for the trip” is not.

Attainable. “I’ll split the driving with my friends and take $200 more for gas, food, and other spending” is much more attainable than “I want $500 to fly there and

$700 for spending money.”

Realistic. “I’ll save $60 a month from my paycheck for the next six months” is more realistic than “I’ll buy

lottery tickets every week.”

Time bound. “I want to save all the money by March 1st” gives you a specific date from which to plan backwards,

unlike “I want to save all the money by spring.”


STUDENT GUIDE PG. 5

⌦ Procedure

Show PowerPoint Visual 1-F, DelayedGratification, and discuss the benefits ofdelaying a purchase.Ideas to consider: saving for a down payment on a car, waiting to buy a videogame when the price is discounted.

Allow students time tocomplete Exercise 1B,How Long Will It Take?,on page 5. Discuss whyresponses may vary fromstudent to student.

Show PowerPoint Visual1-G, S-M-A-R-T Goal Criteria, and explain how the criteria help aperson manage resources to achievegoals.

Show PowerPoint Visual1-H, SMART Goals, toshow examples. Also reference the exampleson pages 5 and 7.Discuss the value of listing measurable andrealistic objectives thatwill lead to realizing the goal.

Polarity ActivityTime: 10 minutesMaterials: Two signs labeled NEED and WANT, masking tape

Directions:Hang signs at opposite ends of the room. Arrange students in thecenter of the room between the two signs. Tell the students thatyou are going to name something (see ideas at the right). Each person should decide whether the item named is a “need” or a“want” and should move to the respective end of the room. Aftereveryone has moved to one end or the other, survey a few members from each group. Ask the individuals why they thinksomething is either a need or a want; ask for examples.

Ideas for the NEED or WANT list:

Automobile

Telephone

Newspaper

Athletic shoes

Business suit

6

Exercise 1C: Are the Goals SMART?

By writing goals that are SMART, you will have a good start to setting up a financial plan

to meet your goals. The goals in Try It! Exercise 1C are missing SMART criteria. Can you

tell what is missing? Work with a partner to rewrite the statements into SMART goals.

Goal What Is Missing? SMART Goal

Go on a whitewater rafting trip

next summer.

Save money this summer to

pay for all college fees.

Get a job to afford to buy

a motorcycle.

Use money received as birthday

gifts to pay own monthly

phone fees.

There are two other

important things you need to

know about your SMART goals.

First, they should be meaningful to

you—something you really want to achieve

and not just something your friends think

you should do. Otherwise, you’ll lack the

motivation to stick with your plans.

Second, you should always write your

goals down and keep them in a place

where you’ll see them often, as a

reminder of what you’re

working toward.

UNIT ONE Your Financial Plan: Where It All Begins


STUDENT GUIDE PG. 6

⌦ Procedure

Guide students to work in pairs to completeExercise 1C, Are theGoals SMART?, onpage 6. Remind students that each statement should meetthe SMART criteria.Arrange for students toshare their reworded goal statements either withanother group or with thewhole class.

7

Assignment 1-1: My SMART Goals

So what are your SMART financial goals? List at least three goals—one each that isshort-, intermediate- and long-term. Also, decide whether each is a want or a need. Be sure the goals you list are S-M-A-R-T.

Don’t worry if the total amount for your goals is more money than you receive in a week—we’ll talk more about that later. The point is to see your financial goals in black and white so you can start figuring outwhat it will take to make them happen.

YOU

CAN

DO IT!

Specific Financial Goal

Objectives(Measurable and realistic

strategies/ways to reach goal)Estimated

Cost

TimelineAchievement

Date

Sample:Pay for lodging,

transportation, meals,and sightseeing for a

five-day trip toWashington, D.C., with

school group.

• Assist with group fund-raising activities to reduce individual cost by $300.

• Save $50 of birthday money for trip fund.

• Save $25 per week for trip fund.

� Reduce spending on clothing and fast food.

� Earn money from part-time job on weekends.

$1,000 Six monthsfrom now

______, 20XX

�

Sho

rt-T

erm

Inte

rmed

iate

Long

-Ter

m

To learn more, visit hsfpp.nefe.org.


STUDENT GUIDE PG. 7

⌦ Procedure

Distribute and assign Assignment 1-1, MySMART Goals, to be completed in class or as homework by a due date.

Distribute and assignAssignment 1-2, 30-DayCountdown to Goal.Direct students to establish a short-termgoal. The studentsshould keep a copy ofthe goal and submit acopy to the instructor soprogress can be checkedin one month. Make anote on your calendar tocheck the status of stu-dents’ goals in 30 days.

� Going Further

> Develop SMART goals for a school organization or event. (See Supplementary Materials—SM1-1.)

> Assess sample SMART goals and give advice to clarify the goals. (See Supplementary Materials—SM1-2.)

> Complete the Values Survey Activity to examine personal values. (See Supplementary Materials—SM1-3.)


The second step in the financial planning process is to find out where yourfinances currently stand, so you can see exactly how much money you’re getting and how much you’re spending or saving.

Let’s start with your income. Where do you get money from? Do youreceive an allowance? Do you have a job or your own business? How much do you earn each week?

Next, how much money do you spend each week and on what are youspending it? Do you owe money to anyone for the stuff you’ve bought?Whether you got a loan to buy your first car or you borrowed money fromyour parents to buy a new jacket, you owe money to others and need to be aware of that debt.

Questions like these are critical because their answers have a direct impacton your ability to achieve your financial goals.

Don’t worry—most people don’tknow off the top of their head howmuch they’ve spent. That’s why aPersonal Spending Record can bea handy tool for tracking your cashflow. Cash flow simply measuresthe money you receive and themoney you spend. We’ll talk moreabout it in Unit 2. For now, it’simportant to know that how youmanage your cash flow affects if, when, and how you reach your goals.

So to find out where your financescurrently stand, complete thePersonal Spending Record that follows. Then copy the form inAssignment 1-3 as a model to track your money for the next several weeks.

Assignment1-2:30-DayCountdown to Goal

Now choose one short-term

financial goal you want to

achieve by next month.

Keep track of your progress

over the next 30 days and

see how you did!

YOU

CAN

DO IT!

� Think Fast!

How much money did you

spend in the past week? Think

about it and write down your

best guess of the total amount.

� Step 2 Analyze Information:Where Does Your Money Go?

Assignment 1-3: My Personal Spending Log

Track your spending for a week, and assess how your spending matches your financial goals. Try tofill in the table for the last seven days. If you can’tremember every dollar you spent or received, that’sOK. Just do the best you can.

But from now on, log your income and purchases on a daily basis. We’ll make use of this information later in Unit 2. Finally, compareyour entries to how teens on average spend their money.

YOU

CAN

DO IT!

Week of: INCOME +$ SPENDING -$(A) (B)

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Totals

Difference(A minus B) $


STUDENT GUIDE PG. 8

⌦ Procedure

Ask the students to writedown their best guessesof the total amount ofmoney they spent in thelast week. Do they think this is typical orunusual for a typicalteenage lifestyle?

Guide the students toread about teen spending statistics in theDid You Know? featureon page 9. What was asurprise? How does thebook list compare to theindividual student lists?

Show PowerPoint Visual1-I, Spending Record,to show an example of aspending record. Discussthe value of trackingcash flow to know exactly what money isreceived and what is spent.

Facilitate a discussion tocreate a master list ofpotential sources ofmoney that a teenagermight receive. Create asecond master list ofways teenagers spendmoney. How mighteither list change for thestudents when they arein their early 20s?

Distribute and assignAssignment 1-3, MyPersonal Spending Log.Establish that the students keep a recordfor either a week ormonth. Tip: Give thestudents envelopes tocollect receipts and torecord expenditures.Inform the students thatthis information will be used in Unit 2 when they prepare a personal budget.

� Discussion


• How do your actual spending habits align with your values?

• Will you be able to achieve any of your financial goals (Assignment 1-1) with your current spending and saving habits?

� Going Further

Use spreadsheet software to

track spending and tally what

was received and what

was spent. (available on the

Instructor’s Manual CD and

HSFPP Web site)


� Step 3 Create a Plan:Your Financial Roadmap

So what if the amount you need to save each week in Assignment 1-1 is more than you receive? It’s a common situation that nearly everyonefaces. The solution is to analyze the situation and make the best decision you can.

Making Decisions

Financial planning requires making many decisions, and making decisionsabout money can be particularly challenging because so many thingscome into play. For one, you have the facts of the situation, such as your spending log. But there are many other things that can affect yourdecisions as well—your mood, values, culture, habits, and opinions ofyour friends and parents.

Some decisions are easy, such as deciding which movie to see. Ofcourse, others are more complicated and require more thought. Butwhether the decision is easy or hard, there’s a basic process everyone follows—the six stages of decision making that you may not even realizeyou already go through. So let’s see how this works by analyzing an easydecision. Pretend you’re going to see a movie with your friends and it’ssold out. What do you do?

1 Identify your goal. Yes, you still want to see a movie.

2 Establish your criteria. Consider what type of movie you want to see, when you want to watch the movie, and how much money you want to spend. By identifying your expectations in advance, you can eliminate choices that don’t meet your wants and needs.

3 Examine your options. Think about whether you want to buy tickets now for a later showing of the sold-out movie, see another one that will be starting soon, or rent a movie to watch at home.

4 Weigh the pros and cons. Consider how your options meet your criteria. You really don’t want to wait a couple of hours, and there’s another film playing that you want to see.

5 Make your decision. Decide which option best meets your criteria. Decide to buy the tickets for the movie that is playing now.

6 Evaluate results. Afterward, talk with your friends about whether you liked it.

When it comes to the decision-making process, two of the most important elements are examining your alternatives and analyzing youroutcomes. So let’s look at these two elements a little further.

?Did You Know?

How do other teens spend theirmoney? A recent study shows:

Top 5 Items Guys Last Bought With Their Own Money

Food......................................30%

Soda or Soft Drinks....................26%

Candy....................................24%

Clothes..................................21%

CDs or Recorded Music.............19%

Top 5 Items Girls Last Bought With Their Own Money

Clothes.......................................43%

Candy.........................................34%

Soda or Soft Drinks...................32%

Food..........................................31%

(Tied) Salty Snacks and Lunch..................................22%

Source: NOPWorld 2003. Survey based on

teens ages 13 to 17.

Now that you have some idea of

where you are (your financial

resources) and where you want to

go (your goals), the next step is to

figure out how to get there.

�


STUDENT GUIDE PG. 9

⌦ Procedure

Show PowerPoint Visual1-J, Factors ThatInfluence DecisionMaking, and discussfactors that might impact teen decisions.

Show PowerPoint Visual1-K, Decision-MakingProcess, and discussthe steps of making a decision. Reference themovie example on page 9.

Show PowerPoint Visual1-L, Decision Makingand Financial Planning,to compare the twoprocesses. What is similar? How are theprocesses different?

Show PowerPoint Visual1-M, Know What YouWant, to give examplesof criteria used to make a decision. Criteria can be identified by considering personalneeds and wants.

� Discussion


• What influences your decisions for minor purchases? Major purchases?

• By thinking about criteria in advance, how might a person save time or money?


Say your friend Rob has two short-term goals he wants to meet.

• Goal A: save $5 per week for the next four weeks to buy a new video game.

• Goal B: save $10 per week for the next nine weeks to buy a new pair of shoes.

However, Rob’s Personal SpendingRecord shows that he has only $5left over each week. So he asksyou what to do—choose Goal A or B?

Because Rob’s limited resourcesmean he can’t accomplish both ofhis goals in the desired time frame,he has to make some kind of trade-off. Economists call this theopportunity cost of the decision. If Rob chooses to save for only thevideo game right now, it means thathe’s giving up the opportunity tobuy those sneakers nine weeks from now.

Rob has several options for trying toreach his goals. In situations likethis, making a decision chart canhelp. Just remember that manytimes there is no “right” answer. Thebest decision is simply the one thatfeels like the best choice based onyour criteria and all the informationyou have. Use Exercise 1D to helpRob establish criteria for making his decision.

Exercise 1D:What Should Rob Do?Work with a partner to complete Exercise 1D tohelp Rob decide what to do to reach his goals.Use the chart to list the criteria and possibleoptions for Rob’s situation.

Criteria Option A: Option B: Option C:

Notes

Of course, not all decisions are created equal. Some are just a blip on theradar screen, while others will have a lasting impact on your life. In fact,some of the personal and financial decisions you make today will affect decisions you will make far into the future. For example, if you take out aloan to buy a car, you could be making payments on it for the next five years.So for the next 60 months, you will have less money to put toward otherthings you may want.

Often a major decision leads to several smaller ones, sometimes called satellite decisions. Once you’ve decided to buy a car, you have to decidewhat kind of car to buy, how much money to put down, what dealer to buy itfrom, and when to buy it. These are satellite decisions, which may lead toeven more satellite decisions. Let’s say you know which car you want. Nowyou have to decide which color and options package to get.

Exercise 1E:Satellite DecisionsIn Exercise 1E, pretend your highschool class wants to see theMacy’s Thanksgiving Day Parade®

in person. What decisions will theclass members need to make?And what new decisions will thosedecisions create? Remember, thedecisions will likely involve who,what, where, when, and how.

MajorDecision:Class Trip


STUDENT GUIDE PG. 10

⌦ Procedure

Arrange students in teams of two or three to complete Exercise 1D,What Should Rob Do?,on page 10. Emphasizethe value of identifyingcriteria before consider-ing options to narrowdown choices. As timeallows, invite teams toshare their responseswith another team or withthe whole class.

Explain how one decisioncan bring about the needto make additional decisions known as“satellite decisions.”Guide the students tocomplete Exercise 1E,Satellite Decisions, onpage 10 with a partneror in teams.

MajorDecision:Class Trip

WhenWhenIdeas for

Fund Raising

Who Will Go

Howto Travel

Cost

Whereto Stay

Whom toContact for

Arrange-ments

Sample:

Bus

Van

Plane

Train


YOU

CAN

DO IT!

Exercise 1F:Deciding to Buy a CarNow that you’ve become an expert on the decision-making process, let’s see how

you would work through a major decision—buying a car. Work with a partner to

complete Exercise 1F, using the decision-making process to choose a car to buy.

Assignment 1-4:Decisions, Decisions

Now complete Assignment 1-4 to show how you used the decision-making process. Think of a decision that you need to make now or in the near future. Show how the decision-making model can be used to help you make a decision that will best fit yourneeds and your limited resources.

Criteria Option A: Option B: Option C:

Notes



⌦ Procedure

Arrange for students towork in pairs as theycomplete Exercise 1F,Deciding to Buy a Car,on page 11. Reinforcethat they should identifytheir criteria before considering any options.

Distribute and assign Assignment 1-4,Decisions, Decisions, tobe completed in class ashomework by a duedate. Encourage the students to use a criteriaand option chart similarto that in Exercise 1D.

� Going Further

> Create a satellite decision chart to identify decisions that might result from deciding to buy a car or another major decision that was made recently.

> Complete the Decision-Making Check Quiz. (See Supplementary Materials—SM1-4.)


Assignment 1-5:Financial Planning Strategies

You have been asked by a friendto provide advice about how tomeet a financial goal. Write ascript or letter to give adviceabout how a financial plan willhelp the person meet his or herfinancial goal. Be sure to mentionfactors that will affect the planand strategies to help the personstick with the plan.

With your plan in place, the next step is to implement it.Of course, knowing what you should do and actuallydoing it can be challenging. It takes discipline.

Did you make any New Year’s resolutions this year?Have you broken them yet? If so, you know it can betough sometimes to stick with your plans.

We’ll talk later about some specific things you can dowith your money to help you stay on target. But onething you can do today is to find someone to encourageyou to be accountable for your goals.

Being a Responsible Spender

When it comes to money, you have a choice. Life is a lot easier, though, if you handle it wisely and respectfullyand take personal responsibility for your decisions and actions.

How are you going to make sure you stay on track tomeet your financial goals? In later units we’ll talk aboutspecific things you can do with your money to help youstay on target. But one thing you can do today is to findsomeone, like a family member, to encourage you to beaccountable for your goals. Share the goals you wrotedown earlier. Talk about your plan. Then ask him or herto check in with you once a week or so to see howyou’re doing. Your odds of success are much better ifyou have a “partner” to help motivate you—and it’salmost always easier than going it alone.

� Step 4 Implement the Plan:Making It Happen

Guidelines for Sticking With Your Plan

Write your goals on an index card or find pic-tures of your goal and post them in a place you’llsee every day.

Tell other people about your goals. Also, asksomeone to check in with you about yourprogress—knowing someone is going to ask about it is good motivation!

When you’re going to spend money, decide howmuch you’ll need ahead of time and take only thatamount so you’re not tempted to spend more.

Review your plan regularly so you know whenyou’re starting to stray and can make adjustments quickly.

What might hold you back from meeting your goals? You need to consider any potential roadblocks that mayaffect your ability to meet your financial goals. Someroadblocks are beyond your control. For example, theconcert tickets you want might be sold out, or your paycheck might be small because you weren’t scheduled to work as many hours as originally planned.Anticipate any roadblocks, and leave room for flexibilityin your financial plan.

YOU

CAN

DO IT!

Read the guidelines for sticking with your plan.Can you think of strategies that will help you stick toyour financial plan?



⌦ Procedure

Facilitate a discussion to identify potential roadblocks that mighthinder a person’s abilityto carry out a financialplan. Brainstorm (smallgroups or whole group)strategies to avoid orprevent the roadblocks.

Show PowerPoint Visual 1-N, Reality,Responsibility,Restraint, and discussthe reality that resourcesare limited. Discuss thebenefits of responsiblefinancial planning ratherthan taking on the consequences of nothaving a plan. Point outthe value of restraint and self-control.

Show PowerPoint Visual1-O, Saving, Spending,Sharing, and discuss the value of saving for a“rainy day,” spendingwithin or below yourmeans, and sharing with others.

Distribute and assignAssignment 1-5,Financial PlanningStrategies, to be completed in class or as homework by a due date.

Facilitate a discussionabout how a financialplan will evolve and needto be adapted during aperson’s lifetime. Seekinput from students to identify events that willimpact a person’s financial situation.

� Discussion


• What might keep you from meeting your financial goals identified in Assignment 1-1?

• What action steps will help you achieve your financial goals?

� Going Further

Work with a team to create ashort presentation or skit thatdemonstrates how to improvethe chances of making goodfinancial decisions.

When you achieve a goal, celebrate and

cross it off your list! Then revisit your list of

goals and ask yourself these questions:

• Are my existing goals still worth achieving?

• Is there a new goal to add to my list?

• Is there an existing goal I want to drop or change?

� Step 5 Monitor and Modify the Plan: Staying on Track

Once you start implementing your financial plan, youneed to check to make sure that you’re staying on track. The best way is to decide to review your plan and yourprogress at regular intervals—like every two weeks orevery month. The more often you do this, the sooneryou’ll catch yourself if you start straying off course.

A plan isn’t meant to be written in stone. It’s a livingdocument that should change as things in your lifechange. You may run into unexpected obstacles orexpenses. Your goals may change, or your resourcesmay vary. You may even receive money that you didn’texpect. That’s just life, and it’s totally normal.

Therefore, you should review your plan whenever youhave significant changes in your life. This includes whenever your finances change, such as getting a promotion and a raise or quitting your job. But it alsoincludes life changes as well. For example, you mightstart dating someone or move to a new city. All of theseevents can create a need to update your financial plan.

Adding It Up

Now you should be able to see how all these elements in the financial planning process work together: your values influence yourneeds and goals; the decisions you make affect your goals; spendingmoney on your wants may limit meeting your needs; all of this is your personal financial responsibility.

These elements are the basics of financial planning—making moneywork for you so you can lead the kind of life you want. Don’t letmoney control you. Always remember that it is just a means to anend, not the end itself.

With a personal financial plan, your journey through life will besmoother. And when you come to forks in the road, you can moveahead with fewer hesitations. Rather than wandering aimlessly, you’ll know where you want to go and have a better chance of getting there.

!

Assessment 1-1: My Financial Plan

Put what you’ve learned together and create your own financial plan.

For more tips, tools, and articles about financial planning, visit hsfpp.nefe.org.




⌦ Procedure

Facilitate the MockFamily Events activity. Facilitate Assignment 1-6, Financial PlanningProcess Steps.(available in Instructor’sManual print materials) To assess the students’ability to perform the unittarget competency, distribute and assignAssessment 1-1, MyFinancial Plan, to becompleted independentlyby a due date. Previewthe directions and scoring guide (AppendixA) to help the studentsplan their work.Alternatively, an objectivetest, Assessment 1-2,Evaluation, is availableon the Instructor’sManual CD and in theSupplementary Materials(see SM1-6).

Mock Family Events ActivityTime: 10 minutesMaterials: Card with mock family scenarios

Directions:Write family scenarios on index cards. Arrange students into “family groups” based on the card scenarios. Tell the students that they will be grouped into mock family situations, and distribute one scenario card to each group. Tell the family groups to think about what types of financial decisions might need to be made for the given scenario. After the teams have developed their lists, discussany similarities and differences in types of financial decisions. Ask the families to identify at leasttwo potential unexpected events that might impact the family financial planning.Ideas for family scenarios:Newly married couple, ages: 20s, rent home, two full-time jobsSingle parent with two school-age children, own home, full-time jobCouple, ages: 60s, one spouse self-employed, one spouse working part-time, own homeCouple, ages: 40s, two teenagers, one of whom is graduating from high schoolSingle, age: 30s, rent apartment, anticipate job layoff

Discussion


• How do you expect your financial situation to change in the next six months? Year? Five years?

• In what ways might your financial decisions and plans change in the next six months? Year? Five years?

• How might your financial decisions made today impact your future financial planning?

�

�Going Further

Complete the Unit 1 onlinesimulation. (available onthe HSFPP Web site)

Copy and distribute casestudies in SM1-5 for students to respond to.


Score ________/10 Name __________________________________________ Date ______________

For rating scale information, please turn to Appendix A: Rating Scales.

Assignment 1-1: My SMART Goals

Write at least one short-term, one intermediate-term, and one long-term personal financial goalusing the SMART model.

Directions:

1 Brainstorm a list of personal financial goals that can be classified as short-term, intermediate-term, and long-term goals.

2 Examine the SMART Goals Chart for this assignment.

3 Use the SMART Goals Chart to detail at least one short-term, one intermediate-term, and one long-term personal financial goal.

4 Self-assess your work using the Required Criteria.

Required Criteria Status

1. You list at least one short-term SMART goal (zero–three months) complete not complete

2. You list at least one intermediate-term SMART goal (three months–one year) complete not complete

3. You list at least one long-term SMART goal (more than one year) complete not complete

4. Your goals are specific complete not complete

5. Your goals are measurable complete not complete

6. Your goals are achievable complete not complete

7. Your goals are realistic complete not complete

8. Your goals include timelines complete not complete

YOU

CAN

DO IT!

Feedback:


SMART Goals Chart

Specific Financial Goal

Objectives(Measurable and Realistic

strategies/ways to reach goal)Estimated

Cost

TimelineAchievement

Date Sho

rt-T

erm

Inte

rmed

iate

-Ter

m

Long

-Ter

m


Assignment 1-2: 30-Day Countdown to Goal

Write at least one short-term personal financial goal using the SMART model, and check yourprogress after 30 days.

Directions:

1 Preview the Required Criteria to plan your work for this assignment.

2 Write a 30-day personal financial goal on an index card using the SMART guidelines learned in class.

3 Give your card to your instructor to hold for 30 days. After 30 days, reflect on your progress in meeting your financial goal.


1. You write at least one short-term financial goal complete not complete

2. Your goal is specific complete not complete

3. Your goal is measurable complete not complete

4. Your goal is achievable complete not complete

5. Your goal is realistic complete not complete

6. Your goal includes a timeline complete not complete

YOU

CAN

DO IT!

Score ________/10 Name __________________________________________ Date ______________


Feedback:


Assignment 1-3: My Personal Spending Log

Track your spending for a week, and assess how your spending matches your financial goals.

Directions:

1 Preview the Required Criteria to plan your work for this assignment.

2 Keep track of your expenses for a week by either keeping receipts in the envelope or writing notes on the envelope.

3 At the end of a week, list your expenses in a log chart.

4 Examine your log and write a one-paragraph summary to reflect on how your spending aligns or does not align with your financial goals.


1. Your log includes descriptions of how money was spent complete not complete

2. Your log includes the amounts of money spent complete not complete

3. You reflect on how the spending aligns or does not align with your SMART goals complete not complete

YOU

CAN

DO IT!

Score ________/10 Name __________________________________________ Date ______________


Feedback:


Score ________/10 Name __________________________________________ Date ______________


Assignment 1-4: Decisions, Decisions

Use the decision-making process to make a decision.

Directions:

1 Think of a decision that you need to make now or in the near future. Show how the decision-making model can be used to help you make a decision that will best fit your needs and your limited resources.

2 Be sure to � state the problem that requires a decision� list criteria for the outcome of the decision� list alternative solutions that relate to the decision� analyze how each of the alternatives aligns with the stated criteria� consider how limited resources, future opportunities, and emotions will impact the decision� make a selection that best meets the criteria

3 Self-assess your work using the Required Criteria.


1. You state the problem that requires a decision complete not complete

2. You list at least three criteria for the outcome of your decision complete not complete

3. You list at least three alternative solutions that relate to your decision complete not complete

4. You summarize how each of the alternatives aligns with the stated criteria complete not complete

5. You describe how limited resources, future opportunities, and emotions will complete not completeimpact your decision

6. You state a rationale of how the final decision best met your criteria complete not complete

YOU

CAN

DO IT!

Feedback:


Assignment 1-5: Financial Planning Strategies

Recommend strategies to implement and follow through on a personal financial plan.

Directions:

You have been asked by a friend to provide advice about how to meet a financial goal. Write a script or a letter to

give advice about how a financial plan will help the person meet his or her financial goal. Be sure to mention factors

that will impact the plan and strategies to help the person stick with the plan.


1. You identify how a financial plan will benefit the situation complete not complete

2. You describe at least two factors that will impact the situation and financial plan complete not complete

3. You state at least two actions that will lead to executing the plan based on complete not completeclass guidelines

YOU

CAN

DO IT!

Score ________/10 Name __________________________________________ Date ______________


Feedback:


Score ________/10 Name __________________________________________ Date ______________


Assignment 1-6: Financial Planning Process Steps

Arrange each of the Financial Planning Process steps in the correct order. Work with a partner toalternately explain what occurs in each step of the process and the significance of the step.

Directions:

Your instructor will give you and a partner a set of cards. Each card identifies a step of the Financial

Planning Process.

1 Arrange the cards in the correct order of the Financial Planning Process as learned about in Unit 1.

2 Starting with Step 1, take turns sharing what you know about the step by telling your partner

a what occurs in the step of the process

b how the step is important to the process

3 Peer assess your responses using the Required Criteria. Your partner may refer to notes or the Student Guide to check your responses.


1. You explain the five steps of the financial planning process complete not complete

2. You list the financial planning process steps in order complete not complete

3. You explain the significance of each step complete not complete

YOU

CAN

DO IT!

Feedback:


Assignment 1-6: Financial Planning Process Steps

Directions for the Instructor:

1 Copy and cut apart a set of Financial Planning Process cards for each pair of students.

2 Divide the students into pairs.

3 Shuffle and distribute a set of cards to each pair.

4 Provide the directions for the activity either verbally or hand out the Directions card.

5 Preview the Required Criteria to inform the students of how they will be assessed.

YOU

CAN

DO IT!

Directions:

Each card identifies a step of the Financial Planning Process.

1 Arrange the cards in the correct order of the Financial Planning Process as learned about in Unit 1.

2 Starting with Step 1, take turns sharing what you know about the step by telling your partner

a what occurs in the step of the processb how the step is important to the process

3 Peer assess your responses using the Required Criteria. Your partner may refer to notes or the Student Guide to check your responses.

CREATEa Plan

IMPLEMENTthe Plan

MONITORand MODIFYthe Plan

SetGOALS

ANALYZEInformation


Score ________/50 Name __________________________________________ Date ______________


Assessment 1-1: My Financial Plan

Now it’s time for you to put it all together and create your own financial plan. Develop a personal financial plan that includes at least three SMART goals and a record of your spending. Show how you used the decision-making process to develop your plan, and explain how you will stick to and monitor your plan.

Competency:Use what you have learned and practiced in Unit 1 to create your own personal financial plan.

Directions:Preview the Required Criteria to plan your activities to develop a personal financial plan. Include the following information in your plan:

at least three financial SMART goals

a record of your spending

an explanation of how you used the decision-making process while developing your plan

an explanation of factors that impact your plan

strategies to use to follow your plan

a summary of how you will monitor your plan


1. Your financial plan includes at least one short-term complete not completeSMART goal (zero to three months)

2. Your financial plan includes at least one intermediate-term complete not completeSMART goal (three months to one year)

3. Your financial plan includes at least one long-term complete not completeSMART goal (more than one year)

4. Your financial plan includes a [week/month] record of how money complete not completehas been received and used

5. You show your decision-making process to allocate financial resources complete not complete

6. You describe at least two factors that will impact the plan complete not complete

7. You list at least three strategies to use to follow the plan complete not complete

8. You explain how the plan will be monitored complete not complete

Feedback:

financial planning is a thought process, based on what

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