This document outlines Unit 1 of a financial planning program which focuses on creating a financial plan. It discusses establishing short, intermediate, and long term goals using the SMART goal criteria of being specific, measurable, attainable, realistic and time-limited. It also covers delayed gratification, factors that influence decision making, and the relationship between the decision making and financial planning processes which both involve setting goals, establishing criteria, weighing pros and cons, making a decision, and evaluating results. The key principles of financial planning discussed are reality, responsibility, and restraint.

1. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
Unit 1 - Your Financial Plan:
Where It All Begins

2. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
“Most people don’t plan to fail…
They simply fail to plan!”
1-A

3. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
The Five-Step
Financial
Planning
Process
1-B

4. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
Term Goals
• SHORT-TERM GOALS
– Within three months
• INTERMEDIATE-TERM GOALS
– Three months to a year
• LONG-TERM GOALS
– More than a year
1-E

5. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
Delayed Gratification
• Saving money over time to make a major
purchase.
• Waiting to buy a new product until the
price goes down.
• Waiting to see the latest movie until it
comes out on Netflix?
• Can you create your own example?
1-F

6. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
S-M-A-R-T GOAL CRITERIA
Specific
Measurable
Attainable
Realistic
Time-Limited
1-G

7. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
SMART Goals
Specific…….. “Pay 5-day trip totransportation,D.C.”
for a
for lodging,
Washington,
meals
Measurable… “$300 through fundraising,a$50 from
birthday money, save $25 week.”
Attainable….. “If I stick to my plan, I’ll have the money
when I need it.”
Realistic……. on while I work toward this goal.”
“I still have enough money to live
Time-Limited.. months from now.”
“I need to have all the money by 6
1-H

8. A ge Factors That Affect
W a n t s Decision Making N eed s
wh at ab ou t you ?
F a m il y Time Culture
Society
M one y M otivation
Values Education
Habits Attitud e s
1-J

9. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
Decision-Making Process
Identify Your
Goal
Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
1-K

10. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All begins
Decision Making and Financial Planning
The Decision- The Financial
Making Process Planning Process
Identify Your
Set Goals
Goal
Establish Analyze
Criteria Information
Weigh Pros
Create a Plan
and Cons
Implement
Make a Decision
the Plan
Evaluate Monitor & Modify
Results the Plan
1-L

11. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
REALITY
RESPONSIBILITY
RESTRAINT
1-N

12. NE EHigh SchoolF ncia Pl nningPr a
F ina l a ogr m
Unit One - Your Financial Plan: Where It All Begins
Unit 1: Your Financial Plan:
Where it All Begins