Values, Needs, Wants, and Goal

Setting Introduction

The Essentials to Take Charge of Your Finances

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What are Values?

Value - Something that is desirable, worthwhile, and important

Influenced by family, friends, teachers, coaches, television, and movies

Each person has different values which guide his/her daily decisions

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Teen Awards

Ashton Kutcher "Teen Award" speech. Excellent. YouTube

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Needs

Need - something necessary or required for life

Brainstorm examples of needs Food, water, clothing and shelter

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Wants

Want - something unnecessary but desired

May increase the quality of living or make a person happier

Brainstorm examples of wants If music is valued, a person may want a

lot of different musical instruments, songs, and equipment.

How do values influence wants? If being popular or having all of the

newest gadgets is valued, a person may have a lot of wants

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You Decide!

Car

Nike Sneakers

Hot Tub

Computer

Food

iPod

Cell Phone

Clothes

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Willis TowerLargest building in North America

The Willis (Sears) Tower stands 110-stories high at 1,450 ft. On top of the main building stand two antennas. The East Antenna is 253' tall and the West Antenna is 283' tall for a total 1,729 feet from base of building to tip of antenna. Those antennas were placed there to negate the sway of the building from high winds and lightning storms that continually visit the windy city of Chicago. The base of the antennas measure 12' diameter.

NOTE: A football field is 300 ft.—this building would be as tall as 6 football fields.

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Governing Values

I-Beam Simulation

The Willis Tower is one of Chicago's most well known attractions.

Construction of this 110 story building began in 1970 and took three years to complete.

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How do you determine your Governing Values?

Steven Jobs "If today were the last day of my life..." YouTube

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How do needs and wants influence how people spend money and make financial decisions?

Your values influence your needs and goals; the decisions you make affect your goals; spending money on your wants may limit meeting your needs; and all of this is your personal financial responsibility.”

Source: NEFE

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Spending Money

How do values influence how people spend money and make financial decisions? If an individual values helping others,

he or she may decide to give money to a church or other charitable groups

TOMS SHOES COSTCO ARTICLE

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What are the issues?

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Ka Ching

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What is Financial Planning? More than budgeting More than investing Financial planning is a thinking

process that helps achieve goals.

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Which road to take (30 sec to 1:30)

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Cheshire Cat, Alice In Wonderland

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DFGDF

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Financial Planning

A blueprint or plan for managing all components of a person’s money.

Arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.

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a Financial Plan?

Goals Net Worth

Statement Budget Insurance Plan Savings Plan Investment Plan

Each topic will

be addressed in detail through out the course.

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Benefits of Having aFinancial Plan?

You have more money and financial security.

You know where to use money to achieve your goals.

You have less chance of going into debt you cannot handle.

You can help your partner and support children if you have a family.

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How do I make aFinancial Plan?

1. Determine your current financial situation.

Make a list of items that relate to your finances:

• Savings/Investments• Monthly Income (Job Earnings,

Allowance, Gifts, Interest)• Monthly Expenses• Debts

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How do I make aFinancial Plan?

2. Develop your financial goals.

Consider your attitude toward money.

Ask yourself the following:• How do I determine if it is more

important to spend money now, or save it for the future?

• How do your personal values affect your financial decisions?

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What is a Goal?

Goal - something a person intends to accomplish

Examples Graduate from high school Earn a college degree Buy a car Get a job Lose 15 pounds

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Types of goals

Long-Term – can be accomplished in more than one year Attending college Getting a great job Buying a new car

Short-Term – can be accomplished within one year Improving grades at school Making the basketball team Saving money to buy a new MP3 player

Goal setting helps you to visualize and plan actions of what you want and then to carry it out.

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Here is a challenge!

Pair up with the person next to you Supplies: A pinch of toothpicks and

a handful of small marshmallows Task: Create a free standing tower

using your supplies But….before you build, work as a

pair and write down a GOAL to serve as your road map

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Marshmallow Tower

Ready – Set – Build

How did your goal help you to build a better tower?

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Did You Reach Your Goal?

Was your goal specific? How did you measure if you

reached your goal? Was your goal attainable or

possible? Was your goal realistic? How much time did you set aside to

achieve your goal?

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SMART goals

In order to set goals effectively, they need to be well written

Edit the goal you wrote for the tower using these guidelines: 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

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SMART Goal setting

Source: NEFE

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SMART Goals

Specific……..

Measurable…

Time-Limited..

Realistic…….

Attainable…..

“Pay for lodging, transportation, & meals for a 5-day trip to Washington, D.C.

Raise $1,000 ($300 from fundraising, $50 from birthday money, save $25 a week.

“If I stick to my plan, I’ll have the money when I need it.”

“I still have enough money to live on while I work toward this goal.”

“I need to have all the money by March 1, 2013.”

Source: NEFE PowerPoint available online

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Conclusion

Any Questions? Review the following terms:

Value Needs Want

Discuss the following concepts The relationship between values and

money The benefits of goal setting