Values
Fundamental belief or practice about what is desirable, worthwhile, and important to an individual
Needs
Goods or services that are required for survival or for something
Opportunity Cost
Value of next best alternative that bust be some result of a decision
Trade-Offs
Give up one thing for another
Wants
Desire for goods/services that can increase quality of life, not necessary
What make up financial decisions?
Values, needs, wants
Short Term
Goal that will take less than a year to achieve
Long Term
Goal that will take more than a year to achieve
SMART
Specific, measurable, attainable, realistic, time bound
Specific
State exactly what is to be done with money involved
Measurable
The amount that it may cost to reach the goal
Attainable
Step by step plan to reach my goal
Realistic
Think thought, trade offs/ opportunity costs, examine consequences
Time Bound
Short term/long term
Financial planning
Managing money to reach goals
Financial goal
Specific objectives accomplished through financial planning
Notes:
Statistics show that goals written down are more likely to be achieved than mental goals
What is one way that a goal can benefit you
Gives a person something to work for
Is it realistic to write goals for every decision you make?
No, goals should be made for things that will require time and effort
What is one way that you can ensure you reach your goal after it is written?
Continuously evaluate your goals