Prescribed medication order and communication skills.pptx
Personal Finance 1.02 PPtA
1. Essential Standard 1.00:
Understand economic activities of
individuals and families.
Objective 1.02
Understand characteristics of financial
goals, steps in decision making and
factors that affect financial decisions.
2. Essential Questions
What are the steps in goal
setting and decision making?
How do individuals needs,
wants, values, standards, and
priorities affect financial goals
and decisions?
3. FINANCIAL GOALS
Financial Goals
Financial goals should be SMART:
are Specific
accomplished Measurable
through and give Attainable
direction to Realistic
financial Time-bound
planning.
Learning to set
financial goals is
an important part
of learning to live
4. Decision Making
Steps
4. Identify the pros and
1. Identify the problem & cons of each option
decision to be made 5. Choose the best
2. Identify resources and option
gather information 6. Put the decision into
3. Identify the options action..just do it!
(alternatives) 7. Evaluate the
*team members outcomes of the
brainstorm decision
5. Six Steps in Economic
Decision- Making Process
Do the Positives (+)
outweigh the Negatives
(-)?
+
Disadvantages
Advantages
Use T-account to determine positives and negatives
Good Decision/Bad Decision
5
6. Good Decision Making
Following logical Good decisions lead
steps when making to the achievement
decisions helps of goals and a feeling
individuals make of self-control and
informed choices. self-confidence.
When decisions are Good decisions are a
made from habit or on key to successful
impulse, there is a independent living.
greater likelihood of Who makes those
negative outcomes. decisions?
Be sure YOU are
making the best
decisions!
7. FACTORS THAT AFFECT FINANCIAL
DECISIONS
Family factors Technology
Cultural factors The media
Social factors The marketplace
Societal and Legal and moral
demographic factors factors
Economic factors Personal factors
Steps in Decision Making
8. Personal Factors Breakdown
Needs and wants
Distinguishing wants from needs helps individuals and
families set more realistic goals and make better
decisions.
Values
Understanding and prioritizing values helps individuals
and families set goals and make decisions that lead to
greater personal satisfaction.
Standards --- Measures of quality or excellence
With regard to standards for success, individuals have
different views of what it means to be successful.
Priorities
Each individual or family needs to set priorities by
deciding what is more important at any point in time.
9. Principles of Financial Planning
from the Jump$tart Coalition Classify the 12
Money doubles by the “Rule of 72”
Your credit past is your credit future
Start saving young
Stay insured
Budget your money
Don’t borrow what you can’t repay
Map your financial future
Don’t expect something for nothing
High returns equal high risks
Know your take-home pay
Compare interest rates
Pay yourself first
http://www.jumpstartcoalition.org/files2010/2010_J$_Cale
ndar.pdf
11. Cultural factors
Cultural and ethnic groups impact
Values
Beliefs
Lifestyle
Family structures
Clothing choices
What are the advantages and disadvantages of
cultural diversity within a family, a school, a
workplace, a community?
12. Social factors
Education level
Family structure
Immigration
Ethnicity
Rural, urban, suburban community
Peer pressure
Community relationships and involvement
13. Societal and Demographic
Factors
Demography is the statistical characteristics of a
population
Age
Sex
Race
Birth, marriage, death rates
Where people live
14. Economic Factors
Employment rate
Kind and number of jobs available
Inflation
A period of rapid increase in the price of goods and
services
Recession
An extended period of slow economic growth *
Review the Business Cycle-prosperity, recession,
depression, recovery
Government Regulations & Spending
Fiscal policies affect personal & business spending
Cash for clunkers, stimulus $, tax rates
15. Technology
The use of mechanical or electronic devices to
manipulate
Information (Computers, Ipads, Fax machines, fiber
optics, GPS systems, smart phones)
Objects (i.e Robots, automated assembly lines,
hybrid cars)
On going change impacts
Training needs
Replacing obsolete technology
Types of jobs available
16. The Media
Impacts the ways people and businesses
communicate and operate locally, nationally,
and globally.
Communications that reach large audiences
with the aid of publication devices that include
Internet
Television
Voice, text, & data transmissions
Publications
17. The Marketplace
Supply
Goods and services available to the consumer
Demand
Consumer desire to purchase as compared to
availability
Market response
How quickly the market adjusts to supply versus
demand
18. Legal and Moral Factors
Laws that impact spending
Taxation
Investment and Retirement Accounts
Insurance requirements
Beliefs in what is right and wrong
What is appropriate behavior of employers,
employees, and individuals at home, work, and
within the community.
Charitable Giving and Community Service
19. Personal Factors
Needs
Items to survive – food, clothing, & shelter
Wants
Not essential but desirable – cell phone, Music
CDs,
Values
A person’s belief about what is important and
desirable