1. 1.17.3.G1
Setting Financial Goals
“Take Charge of Your Finances”
Advanced Level

2. 1.17.3.G1
Financial Planning
Financial planning-
A tool used to achieve financial success
based upon the development and
implementation of
financial goals
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. 1.17.3.G1
Goals
Financial goals – specific
objectives to be
accomplished through
financial planning
Education goals -
enable individuals to
prepare for future
success in the workplace
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

4. Short-term, Mid-term, and Long-
1.17.3.G1
term Goals
Short-term goals- Long-term goals -
specified as less specified as more
than one year than five years
Mid-term goals –
specified as one to five
years
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. The Importance of
1.17.3.G1
Goal Writing
A study in What They Don’t Teach You at
Harvard Business School by Mark McCormack
 1979- Students were asked, "Have you set
clear, written goals for your future and made
plans to accomplish them?"
 3% had written goals and plans
 13% percent had goals, but they were not in
writing
 84% percent had no specific goals at all
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. 1.17.3.G1
And what about that 3%
 Tenyears later….the 3% that had written goals
and plans were earning, on average, ten times
as much as the other 97 percent put together
Why is goal setting
important?
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. 1.17.3.G1
SMART Goals
State Include Determine Do not set State
exactly how the steps to goals for when the
what is to goal can be reach the something goal will
be done measured goal unrealistic be met
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. 1.17.3.G1
SMART Financial Goals
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

9. 1.17.3.G1
SMART Financial Goal
I want to buy a new car
I plan to save for a down payment on a new car
I plan to save $5,000 for a down payment on a new car
I plan to save $5,000 for a down payment on a new car by saving $200
from every paycheck
It is realistic to save $200 from each paycheck because I usually waste
the money on unnecessary items instead of saving it
I plan to save $5,000 for a down payment on a new car by saving $200
from each paycheck for two years
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. 1.17.3.G1
SMART Education Goals
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. 1.17.3.G1
SMART Education Goal
I want to attend college
I want to attend a four year college
Because I want to attend a four year college, I will earn a B in algebra
Because I want to attend a four year college, I will earn a B in algebra
this semester
Because I want to attend a four year college, I will earn a B in algebra
this semester to prepare me for the college entrance exam
Because I want to attend a four year college, I will earn a B in algebra this
semester to prepare me for the college entrance exam when I am a junior
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

12. 1.17.3.G1
What is Missing?
 Find the missing element (specific,
measurable, attainable, realistic, or time
bound) in the following financial goals
 Financial Goal #1
 I plan to save $5,000 for college living expenses in
four years.
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. 1.17.3.G1
What is Missing?
 Financial Goal #1 Answer:
Attainable
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

14. 1.17.3.G1
What is Missing?
 Find the missing element (specific,
measurable, attainable, realistic, or time
bound) in the following financial goals
 Financial Goal #2
 I plan to save for a new computer by saving $150
each month for one year.
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

15. 1.17.3.G1
What is Missing?
 Financial Goal #2 Answer:
Measurable
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

16. 1.17.3.G1
What is Missing?
 Find the missing element (specific,
measurable, attainable, realistic, or time
bound) in the following financial goals
 Financial Goal #3
 I plan to save $2,500 by saving $105 each month
for 2 years.
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

17. 1.17.3.G1
What is Missing?
 Financial Goal # 3 Answer:
Specific
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

18. 1.17.3.G1
What is Missing?
 Find the missing element (specific,
measurable, attainable, realistic, or time
bound) in the following financial goals
 Financial Goal #4
 I plan to save $1,500 to buy a used car by saving
$75 from each paycheck.
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

19. 1.17.3.G1
What is Missing?
 Financial Goal # 4 Answer:
Time Bound
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 19
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

20. 1.17.3.G1
What is Missing?
 Find the missing element (specific,
measurable, attainable, realistic, or time
bound) in the following financial goals
 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.
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

21. 1.17.3.G1
What is Missing?
 Financial Goal # 5 Answer:
Realistic
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 21
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

22. 1.17.3.G1
Summary
Why is goal setting important?
What are the elements of a
SMART goal?
© Family Economics & Financial Education – Revised April 2011 –Values, Needs vs. Wants, & Goal Setting Unit – Setting Financial Goals – Slide 22
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona