Goal Setting. My life in five years (5 points) A goal is: (1 point) GOALS

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1 L1 Note taking guide Goal Setting Total Points Earned 26 Total Points Possible Percentage Name Date Class My life in five years (5 points) A goal is: (1 point) GOALS Short-Term (1 point) Long-Term (1 point) Education (1 point) Financial: (1 point) Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 5

2 L1 Note taking guide SMART Goals (10 points) Term S M A R T Definition A SMART education goal my group developed is: (1 point) Why is it important to set education goals? (1 point) A SMART education goal I have is: (1 point) Why is it important to set financial goals? (1 point) A SMART financial goal my group developed is: (1 point) A SMART financial goal I have is: (1 point) Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 6

3 A1 Shake Out My Future Total Points Earned Name 23 Total Points Possible Percentage Date Class Directions: o For each category, roll the die to determine what your final outcome would be. o Roll the die and cross out the number that is rolled For example: In the housing category, if you roll a 2 you would cross out the word Mansion. o Continue until you have rolled the die enough times to have only one option remaining. This will be your final outcome for each category. o Record your outcome in the box next to the category and answer the reflection question. Housing 1. Condominium 2. Mansion 3. Apartment 4. Ranch 5. Trailer My final housing is: What house would you have liked? What would you have to do to achieve this living situation? Transportation 1. Bus 2. Bike 3. Walking 4. Car 5. Parents My final transportation is: Is having a car necessary? What are ways you can reduce transportation expenses? Education Level 1. No High School Diploma 2. High School Graduate 3. Associates Degree 4. Bachelors Degree 5. Graduate/Masters Degree My education level option is: What level of education would you like to pursue? What are ways to begin preparing yourself now for this achievement? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 7

4 GPA My final GPA is: A1 One academic achievement I would like to accomplish this year is: Family 1. Single 2. Married 3. Engaged 4. Living at home 5. Dating My family is: My future family may include Financial 1. Full time job 2. In debt 3. Financially secure 4. No job 5. Financial aide My financial situation is: When it comes to saving money I am Activities 1. Sports 2. Church Activities 3. Clubs/Organizations 4. Study Groups 5. Volunteering My final activity is: One activity I would like to get involved in is. Which categories do you feel are the most important? What are steps you can take to achieve your ideal lifestyle? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 8

5 A2 Setting a Financial Goal 12 Total Points Earned Total Points Possible (2 points per statement) Percentage Name Date Class Directions: Write a financial goal for yourself by following the five elements of financial goal setting. Specific To be specific, state exactly what is to be done with the money involved in the goal. o For example: I plan to save for a down payment on a new car. What specific item are you saving for? Measurable To make a goal measurable, write the exact dollar amount the goal is for. o For example: I plan to save $5,000 for a down payment on a new car. How much would you like to save? Attainable To make the goal attainable, determine how the goal can be reached, which is often determined by an individual s budget. o For example: I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck. How are you going to reach this goal? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 9

6 A2 Realistic Be realistic. Do not set the goal for something unattainable or unrealistic. If a person is working and barely meeting their immediate needs, saving $5,000 for a new car is not something they can afford. Is the goal realistic? Why or why not? Time Bound To make the goal time bound, specifically state when the goal needs to be reached. This is influenced by how attainable the goal is. o Realistically, a person cannot save $5000 for a new car by only taking $200 out of their paycheck within 6 months. When will you reach your goal? The final goal example: o I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck for two years. What is your final goal statement? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 10

7 A3 Setting an Education Goal 12 Total Points Earned Total Points Possible (2 points per statement) Percentage Name Date Class Directions: Write an education goal for yourself by following the five elements of educational goal setting. Specific To be specific, state exactly what is to be done in your academics to reach a goal. o For example: I plan to raise my grade in advanced algebra. What specific item are you striving to achieve? Measurable To make a goal measurable, write the letter grade or final outcome for the goal. o For example: I plan to raise my grade from a B- to a B+ in advanced algebra. What guidelines will you set to help you determine that this goal has been met? Attainable To make the goal attainable, determine how the goal can be reached, which is often determined by an individual s current academics. o For example: I plan to raise my grade from a B- to a B+ in advanced algebra by staying after school on Monday and Wednesday nights for math tutoring. How are you going to reach this goal? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 11

8 A3 Realistic Be realistic. Do not set the goal for something unattainable or unrealistic. If a person is already staying after school, for other activities are they willing to change their schedule or is their a different time of day additional help would be available? Is the goal realistic? Why or why not? Time Bound To make the goal time bound, specifically state when the goal needs to be reached. This is influenced by how attainable the goal is. o Realistically, a person cannot raise their math grade in one academic week. When will you reach your goal? The final goal example: o I plan to raise my advanced algebra grade from a B- to a B+ by the end of the semester in 9 weeks by attending math tutoring sessions two nights a week. What is your final goal statement? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 12

9 A4 Setting a Goal 10 Total Points Earned Total Points Possible (2 points per statement) Percentage Name Date Class Directions: Match the following terms with the statement below. Each is worth 1 point. 1. Specific objectives to be accomplished through financial planning 2. Specified as less than one year 3. Enable individuals to prepare for future success in the work place 4. The end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future. A. Short term goal B. Long term goal C. Goal D. Education goal E. Financial goal 5. Specified as more than one year. Directions: Refer to your Goal Setting note taking guide L1 and the prediction you wrote for your life 5 years from now. Each is worth 1 point. 6. What is one event in your five year plan that will require a long-term financial or education goal? 7. Write one SMART long-term financial or education goal to help achieve that event. 8. What is one event in your five year plan that will require a short-term goal? 9. Write one SMART short-term financial or education goal to help achieve that event. 10. Why is goal setting important? Family Economics & Financial Education Revised April 2010 Values, Needs vs. Wants, & Goal Setting Unit Setting Financial Goals Page 13

10 Setting Financial Goals Goals F1 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. Financial goals are specific objectives to be accomplished through financial planning. Both short-term and long-term financial goals are a necessary component of an effective financial plan. Short-term goals are specified as less than one year. Long-term goals are specified as more than one year. Goals should be consistent with personal values and attitudes. SMART Goals Financial Goals Financial goals should include the following elements: Specific: State exactly what is to be done with the money involved. Measurable: Write the exact dollar amount. Attainable: Determine how it can be reached, which is often determined by the individual s budget. Realistic: Do not set the goal for something unattainable or unrealistic. Time Bound: Specifically state when the goal needs to be reached. Education Goals Education goals enable individuals to prepare for future success in the workplace. They also can be both short-term and long-term goals. Taking specific classes, getting good grades, and participating in extra -curricular activities are three examples of how individuals can better prepare for future careers. Education goals prepare individuals to achieve higher education thus preparing them with greater opportunities to earn a higher income. Financial goals can be used for saving money, repaying debts, or whatever is necessary depending upon a person s current and potential financial situation and obligations. Financial goals must be continually evaluated and adjusted to account for life changes. A person must not give up if a goal is not reached! If things do not happen as planned, re-evaluate and redefine the financial goal to try again. Financial goals are necessary because they give a financial plan specific direction. Specific goals can help to keep a person focused and on track and provide visualization of where the person wants to be in the future. When a person knows what his/her goals are, his/her choices in making decisions will become clearer. For example, having a goal of saving money for a vacation is very vague. It does not give enough specific information to guide financial behavior. Stating I plan to save $1,800 for a vacation next year by saving $150 from each month s paycheck for 1 year is much more specific for the person to put the plan into action. Financial Goals are specific objectives to be accomplished through financial planning. Family Economics & Financial Education April 2008 Values, Needs vs. Wants & Goal Setting Unit Setting Financial Goals Page 1