SETTING FINANCIAL GOALS
Page | 1 2.1.4 SETTING FINANCIAL GOALS Advanced Level www.takechargetoday.arizona.edu RECOMMENDED GRADE LEVELS AVERAGE TIME TO COMPLETE EACH LESSON PLAN IS DESIGNED AND CONTINUALLY EVALUATED “BY EDUCATORS, FOR EDUCATORS.” THANK YOU TO THE FOLLOWING EDUCATORS FOR DEVELOPING COMPONENTS OF THIS LESSON PLAN. 10‐12 Anticipatory Set & Facilitation: 105 minutes Conclusion/Assessment Options: 15‐190 minutes Time does not include optional items. Joanna Krogstad, Family and Consumer Sciences Educator, Manhattan, Montana Amy Broekhuizen, Family and Consumer Sciences Educator, East Kentwood, Michigan NATIONAL STANDARDS The curriculum is aligned to the following national standards: National Standards for Financial Literacy American Association of Family and Consumer Sciences Council for Economic Education National Business Education National Jump$tart Common Core English Language Arts LESSON PLAN OBJECTIVES Upon completion of this lesson, participants will be able to: Interpret the role of goal setting as an integral part of financial planning Construct a well written goal MATERIALS MATERIALS PROVIDED IN THIS LESSON PLAN Road Trip Vocabulary 2.1.4.A1 “Roll Out” My Future 2.1.4.A2 “Goal Out” My Future Letter 2.1.4.A3 Setting Financial Goals 2.1.4.A4 Goal Tracking Journal 2.1.4.A5 Goal Setting 2.1.4.A6 “Goal Out” My Future Letter Rubric 2.1.4.B1 Goal Setting Timeline 2.1.4.B2 Setting Financial Goals Vocabulary List 2.1.4.E1 Setting Financial Goals Information Sheet 2.1.4.F1 Show Me the Goal! 2.1.4.H1 Additional Show Me the Goal Scenarios 2.1.4.H2 MATERIALS SPECIFIC TO THIS LESSON PLAN BUT AVAILABLE AS A SEPARATE DOWNLOAD MATERIALS TO ACQUIRE SEPARATELY DEPENDING ON OPTIONS TAUGHT Setting Financial Goals Answer Key 2.1.4.C1 Setting Financial Goals PowerPoint presentation 2.1.4.G1 Taking Charge of Your Financial Well‐Being Unit Multiple Choice Test Bank and Answer Key 2.1.0.M1 & C1 Cardstock One die per participant Butcher paper Small white boards Materials to clean white boards (cloths, erasers, etc.) © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 2 2.1.4 Setting Financial Goals Note Taking Guide 2.1.4.L1 RESOURCES EXTERNAL RESOURCES External resources referenced in this lesson plan: Goal setting websites: o Stickk: www.stickk.com o Piggy Mojo: www.piggymojo.com o Smart Goals 101: www.101‐smart‐goals.com Consumer Jungle: www.consumerjungle.org TAKE CHARGE TODAY RESOURCES Similar lesson plan at a different level: Goals Galore 1.1.3 Optional lesson plan resources: Pursuit of Happyness Active Learning Tool 3.0.42 Technology Integration Options 3.0.50 Internet Games Relating to Financial Education 3.0.51 Gaining with Goals Service Learning 5.1.1 CONTENT EDUCATOR MATERIALS Materials to support educators when preparing to teach this lesson plan are available on the Take Charge Today website. PARTICIPANT READING Setting Financial Goals Information Sheet 2.1.4.F1 LESSON FACILITATION PREPARE Visual indicators to help prepare the lesson VOCABULARY ACTIVITY (OPTIONAL) INSTRUCT Instructions to conduct the lesson facilitation CUSTOMIZE Potential modifications to lesson facilitation Road Trip Vocabulary Approximate time: 5 minutes at the beginning of instruction and 5 minutes at the end of instruction. Materials to prepare: 1 Road Trip Vocabulary 2.1.4.A1 per participant Before Instruction: 1. Hand out one Road Trip Vocabulary 2.1.4.A1 to each participant. 2. Instruct participant to complete the first section “Beginning of your road trip” by identifying one thing they already know about each term. After Instruction: 3. Instruct participants to complete the second section of Road Trip Vocabulary 2.1.4.A1, “End of your road trip” by identifying one thing they learned during the lesson about each term. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 3 2.1.4 ANTICIPATORY SET “Roll Out” and “Goal Out” Your Future Approximate time: 25 minutes Materials to prepare: 1 “Roll Out” Your Future 2.1.4.A2 per participant 1 “Goal Out” My Future Letter 2.1.4.A3 per participant “Goal Out” My Future Letter Rubric 2.1.4.B1 is available for grading 1. Instruct participants to complete “Roll Out” Your Future 2.1.4.A2. a. Use the following discussion questions: i. What housing option would you have chosen? What could be done to achieve this standard of living? ii. Is having a car necessary? Are there ways that transportation costs could be reduced? iii. What level of education would you have liked to pursue? What are ways to begin preparing yourself for this level of attainment? iv. Were you satisfied with your final GPA? If not what GPA would you have been satisfied with and how might you work toward that goal? v. Did you feel that the family you “inherited” was what you envisioned for yourself? Explain. vi. What type of financial situation did you roll? Could you support yourself comfortably, given this financial scenario? vii. Do you believe the type of activities you were involved in enhanced your life? What are examples of activities not listed that you would enjoy participating in? b. Without goals, life becomes a toss of the die. We forfeit the right to be in control of our future. The good news is, with some forethought, preparation and goals we have control of our destiny. Granted, we can’t control all aspects of our future but with some planning and consideration we stand a much greater chance of attaining the life style we envision for ourselves and our families. 2. “Goal Out” Your Future a. Instruct participants to write a letter to themselves on “Goal Out” My Future Letter 2.1.4.A3 detailing what they think their life will be like in five years. b. Use the “Goal Out” My Future Letter Rubric 2.1.4.B1 to grade the letters if desired. RECOMMENDED FACILITATION Approximate time: 80 minutes Materials to prepare: Open Setting Financial Goals PowerPoint presentation 2.1.4.G1 Sheet of butcher paper per group of 2‐4 participants Show Me the Goal! 2.1.4.H1 activity cards per group of 2‐4 participants Present the Setting Financial Goals PowerPoint presentation 2.1.4.G1 To shorten the length of the “Roll Out” Your Future Activity, have participants roll a die once for each category. The number the die lands on is the final outcome for each category. If time is limited, only complete the “Goal Out” Your Future part of the anticipatory set. The Goal Setting Note Taking Guide 2.1.4.L1 is provided but not included as part of the recommended facilitation instructions or approximate time. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 4 2.1.4 Part 1: What are Goals? 1. Slide 2: First Reaction a. Discuss the question presented. 2. Slide 3: Set Goals! a. Discuss what a goal is. Part 2: The Importance of Goal Setting 3. Slide 4: How can goal setting benefit you? a. Discuss how goal setting has many different benefits in life. b. Ask participants to discuss how goal setting benefits their life. 4. Slide 5: Is it realistic to write goals for every decision you make? a. Discuss how it isn’t realistic to write a goal for routine (daily) decision, but major decisions that require a lot of thought, effort, and time will benefit from goal writing. 5. Slide 6: To Goal or Not To Goal? a. Have participants discuss which of the decisions presented would benefit from goal setting. Some discussion points include: i. When you will purchase a car – this is a major decision that would benefit from setting a goal. A goal will help the person secure funds to purchase a car and decide what type of car to purchase (including what is affordable for them). ii. When you will complete your homework this evening – this is a routine decision that would be cumbersome to write a goal for. However, this decision may affect other goals. For example, if a goal has been set to earn an A in a class, that person may wish to dedicate more time to homework each evening. iii. What you will eat for lunch – this is a routine decision that would be cumbersome to write a goal for. However, this decision may affect other goals. For example, if a goal has been set to lose weight, that will affect the decision of what to eat for lunch. iv. Which extra‐curricular activities you will participate in – this is a major decision that would benefit from goal setting. A goal will help the person find time and money to complete the activities. b. Instruct participants to refer to their “Goal Out” My Future Letter 2.1.4.A3 and underline items in their letter would benefit from writing down a goal. 6. Slide 7: How can goal setting help you manage your money? a. Goal setting is especially important when it comes to money. b. Setting financial goals can help a person make more effective day to day spending decisions, because it will be easier to make spending decisions that lead to goal achievement. c. Instruct participants to refer to their “Goal Out” My Future Letter 2.1.4.A3 and circle items that could be achieved by writing a financial goal. Part 3: Writing Goals‐ SMART Goals 7. Slide 8: Elements of a successful goal… © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 5 2.1.4 a. Specific elements of a successful goal have been identified and developed into what is called a “SMART goal.” 8. Slides 9‐15: SMART Goals a. In slides 9‐15, each element of SMART goals will be explained in depth. 9. Slide 16: SMART Financial Goals Summary a. Review the elements of a SMART financial goal. Part 4: Show Me the Goal! 10. Slide 17: Show Me the Goal! a. To prepare to write a SMART goal, have participants complete the Show Me the Goal! activity. There are two parts to this activity. b. For part one, split participants into groups of 2‐4 and provide each group with a sheet of butcher paper. Participants will remain in these groups for the remainder of the lesson facilitation. c. Each group will help Austin “match” each part of his goal as the correct SMART goal element. 11. Slide 18: Remember the parts of a SMART goal… a. Complete a quick review of the SMART goal elements. b. If desired, leave this slide up during the activity to provide a reminder of each element of a SMART goal. c. Provide a set of Show Me the Goal! 2.1.4.H1 activity cards to every group. 12. Slide 19: Match each part of Austin’s goal with the correct SMART goal element a. Conduct the activity by having each group match the correct SMART goal element with the correct goal using their Show Me the Goal! 2.1.4.H1 activity cards. b. If the Show Me the Goal! 2.1.4.H1 activity cards are not used, then participants can use this PowerPoint slide to match the SMART goal element with the correct part of the goal. 13. Slide 20: Are you correct? a. Use the answers provided on the slide to ensure every group “matched” their Show Me the Goal! 2.1.4.H1 activity cards correctly. 14. Slide 21: What is Austin’s final SMART goal? a. Instruct participants to use the SMART goal elements provided to write a final SMART goal for Austin on their groups’ butcher paper. 15. Slide 22‐26: Show Me the Goal! a. Conduct the second part of the Show Me the Goal! activity: i. Have participants continue working in their groups of 2‐4. ii. Instruct participants to lay out the five Show Me the Goal! 2.1.4.H1 activity cards that refer to each element of a SMART goal (the five cards that indicate each letter‐ S, M, A, R, T). iii. Use the PowerPoint to conduct the activity by revealing a goal and having each group identify which of the five SMART goal elements is missing from that goal by holding up the correct letter(s). iv. Show the correct answer and discuss why that is the missing goal element if any of the groups were incorrect with their guess. Facilitate the first part of the Show Me the Goal! activity from the PowerPoint Presentation without using the Show Me the Goal! 2.1.4.H1 activity cards. If additional practice is needed, additional scenarios are provided to continue the Show Me the Goal activity ‐ Additional Show Me the Goal Scenarios 2.1.4.H2. However, these are not conducted as part of the recommended lesson facilitated. The scenarios are in the correct order of the answers. Use white boards to play the “What is Missing?” activity. Groups write the correct letter on their white boards. The educator will then say “white boards up” and each group will raise their white board showing the answer they recorded. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 6 2.1.4 Part 5: Managing Your Goals 16. Slide 27: Once you write a goal, how can you ensure that you reach it? a. Once a SMART goal has been written, the work doesn’t end. Managing and monitoring goal progress to ensure success is one of the most important parts of goal setting. b. Discuss the tips provided for managing goals. 17. Slide 28: Help Paul reach his goal a. To practice writing a SMART goal, have participants write a SMART goal for Paul on their groups’ butcher paper using the prompts provided. b. The exact goal written will vary but an example is: Paul will save $25 per month for the next four months in order to purchase the new cell phone that costs $100. Paul will add no additional money to savings during this time, and he is willing to give this up in order to purchase the new phone. 18. Slide 29: Does Paul’s goal include all elements of a SMART goal? a. Have each group check their goal to make sure all SMART goal elements are included. 19. Slide 30: Life Happens… a. Unexpected events happen in life. When these events affect the completion of goals, it is important to reevaluate those goals. b. Four chance cards are provided in the PowerPoint. Each chance card represents an unexpected life event. Allow each group to choose a chance card scenario or randomly assign each group on of the chance card scenarios. c. Instruct each group to adjust Paul’s goal according to their chance card scenario. 20. Slide 31: Life Happens… a. After each group has rewritten Paul’s goal, use the discussion questions provided on the PowerPoint to debrief the activity. b. Sample discussion prompts for each chance card are provided below: i. Chance card 1: How did you adjust Paul’s goal to come up with an additional $50? Will it take him longer to purchase the more expensive cell phone? ii. Chance card 2: Did you have to use money from savings? Did you make sure to meet Paul’s goal to have a minimum of $100 in savings? What would you have done if you didn’t have savings? iii. Chance card 3: Same as card 3. Did Paul give up some of his entertainment expenses in order to stick to his goal? Or, did he extend the time to reach his goal? iv. Chance card 4: Same as cards 3 and 4. Part 6: Summary 21. Slide32: Summary a. Summarize the main points of the lesson. 22. Slide33: Now it’s your turn! a. Instruct participants to refer to their “Goal Out” My Future Letter 2.1.4.A3 and choose one element of the letter to write a SMART goal for. Convert the chance cards from the PowerPoint into QR codes and post around the room. Participants use smartphones and/or tablets to scan the QR codes and find the chance card they will use to re‐write Paul’s goal. Refer to the Technology Integration Options Active Learning Tool 3.0.50 guide for assistance with QR codes. If participants need extra guidance writing a SMART goal, use Setting Financial Goals 2.1.4.A4 during the facilitation. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 7 2.1.4 b. Have each participant share their individual goals with their groups. Instruct groups to provide constructive feedback to one another to ensure their goals have all of the elements of a well written goal. c. Based upon feedback from their group, have participants edit their goals accordingly. CONCLUSION OPTIONS There are three conclusion options provided for this lesson. Option 1: Setting Financial Goals Worksheet Option 2: Goal Tracking Journal Option 3: Pursuit of Happyness Option 1: Setting Financial Goals Worksheet Approximate time: 15 minutes Materials to prepare: 1 Setting Financial Goals 2.1.4.A4 per participant 1. Complete Setting Financial Goals 2.1.4.A4 as instructed. Option 2: Goal Tracking Journal Approximate Time: 5‐10 minute intervals throughout the course Materials to prepare: 1 Goal Tracking Journal 2.1.4.A5 per participant 1. Use the Goal Tracking Journal 2.1.4.A5 to have participants track the progress of a goal throughout the remainder of the course. Option 3: Pursuit of Happyness Approximate time: 190 minutes Materials to prepare: See Pursuit of Happyness Active Learning Tool 3.0.42 for materials list 1. Complete the Pursuit of Happyness Active Learning Tool 3.0.42 to illustrate the effect of setting and sticking to goals. a. In this lesson, participants identify examples of Chris Gardner’s values, goals, and personality traits and describe how these were evident through Chris’s actions in the movie The Pursuit of Happyness. ASSESSMENT OPTIONS There are three assessment options provided for this lesson. Option 1: Reinforcement Worksheet Option 2: Goal Setting Timeline Option 3: Service‐Based Learning Project Provide extra time to write their SMART goal by proposing a challenge: "come to class next time with a goal for yourself" Use a goal setting website to supplement the Goal Tracking Journal 2.1.4.A5 and help track a goal throughout the course. Refer to the supplemental resources section for sample goal setting websites. Play an online game relating to goals. Refer to the Internet Games Relating to Financial Education Active Learning Tool 3.0.51 or the Consumer Jungle website. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 8 2.1.4 Option 1: Reinforcement Worksheet Approximate time: 15 minutes Materials to prepare: 1 Goal Setting 2.1.4.A6 per participant 1. Complete Goal Setting 2.1.4.A6 as instructed. Option 2: Goal Setting Timeline Approximate time: 60 minutes Materials to prepare: Goal Setting Timeline 2.1.4.B2 per participant Optional: construction paper, scissors, glue, crayons, markers, magazines, etc. to create a timeline by hand Optional: Technology Integration Options Active Learning Tool 3.0.50 1. Complete the Goal Setting Timeline 2.1.4.B2 to have participants write a SMART goal and then create a timeline to show how they will reach that goal. There are many options to create the timelines in this assessment: a. Option 1: By hand‐ use construction paper, scissors, glue, crayons, markers, magazines, etc. to create the timeline. b. Option 2: Use a program such as Microsoft Publisher to create an electronic timeline. c. Option 3: Use an Internet‐based timeline creator. Refer to the Technology Integration Options Active Learning Tool 3.0.50 to find time creators. Option 3: Service Based Learning Project Approximate time: Varies Materials to prepare: See Gaining with Goals Service Learning 5.1.1 for materials 1. Complete the Gaining with Goals Service Learning 5.1.1. as instructed. a. Participants create posters to help others learn the importance of setting goals and how to use the SMART goals process. © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 9 2.1.4.E1 Setting Financial Goals Vocabulary List 1 2 3 4 5 6 7 TERM Financial goals Financial planning Goal Long‐term goals Opportunity cost Short‐term goals Trade‐off DEFINITION Specific objectives that are accomplished through financial planning Managing money continuously through life in order to reach your financial goals Something a person intends to acquire, achieve, or accomplish in the future A goal that will be attained in more than one year The value of the next best alternative that must be forgone as a result of a decision A goal that will be attained in less than one year Giving up one thing for another © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 10 2.1.4.A1 Road Trip Vocabulary Total Points Earned Name 14 Total Points Possible Date Percentage Class Directions: Complete the “Beginning of your road trip” section. When instructed, complete the “End of your road trip” section. End of your road trip… Beginning of your road trip… Identify one thing you know about each term: Identify one thing you learned about each term: Goal Goal Financial planning Financial planning Financial goal Financial goal Short‐term goal Short‐term goal Long‐term goal Long‐term goal Trade‐off Trade‐off Opportunity cost Opportunity cost © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 11 2.1.4.A2 “Roll Out” My Future Total Points Earned Total Points Possible Percentage Name 7 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 Circle your final outcome. GPA 1. 4.0 2. Less than 2.0 Family 3. 3.0 Housing 4. 2.5 1. Divorced 5. 3.5 1. Condominium 2. Single 6. 2.0 2. Mansion 3. Married 3. Apartment 4. Engaged 4. Ranch 5. Live with parents 5. Camp Trailer 6. Dating Financial 6. House 1. Full‐time job 2. In debt 3. Financially secure 4. No job 5. Financial Aid 6. Bankrupt Education Level Transportation 1. 2. 3. 4. 5. 6. Car Bike Walking Bus Parents Taxi 1. 2. 3. 4. Associate’s Degree No High School Diploma GED Graduate/Master’s Degree 5. High School Graduate 6. Bachelor’s Degree Activities 1. 2. 3. 4. 5. 6. Sports Religious Activities Clubs/Organizations Study Groups Volunteering Video Gaming © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 12 2.1.4.A3 “Goal Out” My Future Letter Total Points Earned Name 21 Total Points Possible Date Percentage Class Part 1: How do you envision your life in five years? Write a letter to your future‐self detailing what you think your life will be like in five years. When writing your letter address the following categories; where you will live, what type of transportation you are using, education level achieved, if you have a family or not, how much money you will make, type of career you have chosen, and what types of activities you enjoy. Date: ________________ Dear ______________________________________, © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 13 2.1.4.A3 Sincerely, _____________________________________________ © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 14 2.1.4.B1 “Goal Out” My Future Letter Rubric Total Points Earned Name 21 Total Points Possible Date Percentage Class Directions: Write a letter to your future‐self detailing what you think your life will be like in five years. Your letter must address at least five of the following seven categories: Where you will live What type of transportation you are using Education level achieved If you have a family or not How much money you will make Type of career you have chosen What types of activities you enjoy. Content: At least five of the seven categories are addressed Writing Skills: Sentences are fluent and effective Very few errors in mechanics, punctuation and word choice Essay includes an introduction, body, and conclusion Effectiveness of Presentation: Clearly prepared Easily read and neatly assembled Minimum of one‐page, double‐ spaced with 12 font and 1‐inch margins. Exemplary Satisfactory Unsatisfactory No Performance Score 9‐7 6‐4 3‐1 0 6‐5 4‐3 2‐1 0 6‐5 4‐3 2‐1 0 Total Points Earned Total Points Available Percentage 21 © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 15 2.1.4.L1 Setting Financial Goals Note Taking Guide Total Points Earned Total Points Possible Percentage Name Date Class Directions: Use the prompts provided to take notes during the lesson. Goal Setting What is a goal? Identify one way goal setting can benefit you. Is it realistic to write goals for every decision you make? Goal Setting and Financial Planning Goal setting is important to financial planning What is financial planning? What is a financial goal? © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 16 2.1.4.L1 Setting and Achieving Goals Describe each element of a SMART goal in the table below. Make sure to include any vocabulary term definitions. S Specific M Measurable A Attainable R Realistic T Time Bound What is one way that you can ensure you reach your goal after it is written? Write one SMART financial goal for yourself: © Take Charge Today – August 2013– Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 17 2.1.4.H1 Show Me the Goal! 2.1.4.H1 2.1.4.H1 2.1.4.H1 Specific Measurable 2.1.4.H1 Attainable 2.1.4.H1 Realistic Time Bound © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 18 2.1.4.H1 2.1.4.H1 2.1.4.H1 Austin will save money for college. Austin will save $600. 2.1.4.H1 Austin will spend $25 less on entertainment every month in order to save that $25 instead. 2.1.4.H1 2.1.4.H1 Austin has determined that the opportunity cost of saving money is more valuable than spending an extra $25 on entertainment every month. Austin will save money for the next two years. © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 19 2.1.4.H2 Additional Show Me the Goal Scenarios 2.1.4.H2 Emmitt wants a part‐ time job. 2.1.4.H2 Emmitt has researched job availability and average pay to ensure his requirements are accurate of the job market in his community. 2.1.4.H2 Emmitt will find a part‐ time job that pays a minimum of $7.00/hour and allows him to work no more than 10 hours/week. 2.1.4.H2 Emmitt will apply for three jobs per week until a job is obtained. 2.1.4.H2 Emmitt wants to have a job by the end of the month. © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 20 2.1.4.H2 2.1.4.H2 Laila will purchase new basketball shoes. 2.1.4.H2 Laila has determined that the opportunity cost of buying new basketball shoes is more valuable than her daily energy drink. 2.1.4.H2 2.1.4.H2 Laila will spend no more than $100 on new basketball shoes. Laila will save $15 of her weekly allowance by giving up the purchase of her daily energy drink from the vending machine at school. 2.1.4.H2 Laila will purchase new basketball shoes before basketball season starts in two months. © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 21 2.1.4.A4 Setting Financial Goals Total Points Earned Total Points Possible Percentage Name 10 Date Class Directions: Write a financial goal for yourself by following the five elements of financial goal setting. Specific Measurable Attainable Realistic Time Bound State exactly what is to be done with the money involved. Write the exact dollar amount. Create a step‐by‐step plan outlining exactly how the goal can be reached. Think through the trade‐offs and opportunity costs to analyze the consequences of your goal to make sure it isn't unattainable. Specifically state when the goal will be reached. Example: I plan to save for a down payment on a new car. Example: I plan to save $5000 for a down payment on a new car. How can you make your goal specific? (1 point) How can you make your goal measurable? (1 point) Example: I plan to save $5000 for a down payment on a new car by automatically saving $200 from each paycheck before spending that money on any other expenses. How are you going to reach this goal? (1 point) Example: The opportunity cost of saving for a new car is higher than spending that $200 every month on other items. Is your goal realistic? (1 point) What is your final goal statement? (5 points) © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Example: I plan to save $5000 for a down payment on a new car by automatically saving $200 from each paycheck before spending that money on any other expenses for the next two years. When will you reach your goal? (1 point) Page | 22 2.1.4.A5 Goal Tracking Journal Total Points Earned Name 21 Total Points Possible Date Percentage Class Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Check‐ in 3 Check‐in 2 Check‐ in 1 Directions: Use the prompts provided to track the progress of your goal. What is your SMART goal? (5 points) Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) Check‐ in 8 Check‐ in 7 Check‐ in 6 Check‐ in 5 Check‐ in 4 Page | 23 2.1.4.A5 Date: What is the progress of your goal? Do you need to adjust your goal? (2 points) © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 24 2.1.4.A6 Goal Setting Total Points Earned Name 13 Total Points Possible Date Percentage Class Directions: Answer the following questions with full sentences. 1. In your own words, how can setting goals help create well‐being? 2. Why is it important to write down goals? 3. How can setting goals help you manage your money? 4. Why is it important to consider long‐term financial goals? 5. Use an example to explain the difference between trade‐offs and opportunity costs. (2 points) © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 25 2.1.4.A6 Directions: Refer to the letter you wrote to your future self to answer the following questions. 6. What is one event in your five year plan that will require a long‐term goal? 7. Write a SMART goal for this event. (5 points) 8. How will you manage this goal to ensure goal success? © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 26 2.1.4.B2 Goal Setting Timeline Total Points Earned Name 21 Total Points Possible Date Percentage Class Directions: Follow the directions below to create a timeline for a short‐term goal you would like to accomplish within the next year. Step One: What is your short‐term SMART goal? Step Two: Using the supplies or electronic timeline creation tool provided, create a timeline that outlines every step it will take to accomplish your goal. The timeline should include the following information: Your SMART goal should be indicated somewhere on the timeline. The timeline should outline the step‐by‐step events that are required to reach your SMART goal: o A minimum of five steps should be indicated on your timeline. o Each step should include a description and a date. Use graphics to enhance your timeline. The timeline will be graded based on the rubric below. Content: A SMART goal is included A minimum of five steps indicating how the goal will be accomplished Each step includes a description and a date Writing Skills: Sentences are fluent and effective Very few errors in mechanics, punctuation and word choice Effectiveness of Presentation: Clearly prepared Visually appealing Graphics are used to enhance the presentation Exemplary Satisfactory Unsatisfactory No Performance 9‐7 6‐4 3‐1 0 6‐5 4‐3 2‐1 0 6‐5 4‐3 2‐1 0 Total Points Earned Total Points Available Percentage Score 21 © Take Charge Today – August 2013 – Setting Financial Goals Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 2.1.4.F1 Se ng Financial Goals Advanced Level Has something beneficial ever happened to you with no effort on your part? Maybe you won a prize in a drawing or received extra birthday money from a rela ve. There is a possibility that good things have come your way by coincidence. But, how likely is it to receive an “A” on a test without studying? Or, how likely is it to beat your opponent in sports without working hard in prac ce? Most good things are the result of effort and discipline on your part. G S F Throughout life we find ourselves constantly se ng personal goals. A goal is something a person intends to acquire, achieve, or accomplish in the future. Se ng goals helps you plan how to make the life you want to live a reality. Reaching goals helps us to determine the degree of success we’ve achieved in life. Se ng goals is par cularly important for future outcomes that will take a lot of thought, planning, me and effort to achieve. P Se ng financial goals is an integral part of financial planning, the process of managing money con nuously throughout your life. Financial goals will help to guide your short and long‐term spending decisions because they force you to iden fy priori es. Financial goals give your financial plan a specific direc on. What is one financial goal you would like to achieve? You are more likely to achieve your desired outcome if your goal‐se ng is built around SMART goals. SMART goals may be wri en for just about any objec ve including your educa on, career or health (such as fitness or weight loss). A SMART financial goal includes these elements: Did you know that goals that are wri en down are much more likely to be achieved than mental goals? © Take Charge Today – August 2013 – Se ng Financial Goals – Page 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Ins tute at The University of Arizona 2.1.4.F1 W pecific A specific goal has a clearly defined end result. When wri ng a SMART financial goal state exactly what plan you have for the money involved. Lacey wrote the following goal. "I will reduce my debt." This goal lacks specificity. A specific statement of this goal would be “I will reduce the amount I owe on my car loan.” SMART F easurable A measurable goal is one for which you can easily determine when the goal has been met and whether you are making progress toward its comple on. When wri ng a SMART financial goal, state the exact dollar amount involved. Lacey’s goal of, “I will reduce the amount I owe on my car loan” is not a measurable goal because the verb “reduce” is vague. “I will reduce the amount I owe on my car loan by $1,000” is a measurable SMART goal because Lacey has stated a specific dollar amount. ealis c Being aware of your resources and what you will have to give up in order to achieve your goal will help you determine if that goal is realisƟc. When wri ng a SMART financial goal, examine the consequences of your goal in terms of its opportunity costs, that is, the value of the next best alterna ve that you will give up as a result of your plan. Are you willing to give up what is necessary to achieve your goal? G ainable An aƩainable goal is one that you know is possible to achieve. When wri ng a SMART financial goal create a step‐by‐step plan that outlines exactly how the goal can be reached. Lacey’s goal statement, “I will reduce the amount I owe on my car loan by $1,000,” is not aƩainable if Lacey cannot determine exactly how she will reduce her loan amount by $1000. Lacey wrote a SMART goal when she stated, “I will reduce the amount I owe on my car loan by $1,000 by paying an extra $100/ month” This SMART goal is aƩainable because Lacey iden fied her willingness to apply an extra $100 each month toward the balance of her car loan instead of other expenses. ime Bound A me bound goal simply means you’ll achieve your goal within a certain meframe. Lacey wrote a SMART goal when she stated, “I will reduce the amount I owe on my car loan by $1,000 in 10 months by paying an extra $100 per month.” She has bound her goal within a meframe of 10 months. Lacey’s goal of paying an extra $100 a month toward her car loan is realis c only if she is willing to give up the other things she could have or do with that $100 each month. These trade‐offs are specific to Lacey and will depend on her values. Ul mately, a specific, measurable and a ainable goal will fail if a person is not willing to s ck with the financial plan to achieve it. Se ng a SMART goal involves iden fying and evalua ng the trade‐offs and opportunity costs and commi ng Lacey’s SMART goal becomes, “I will reduce to the plan. the amount I owe on my car loan by $1,000 in 10 months by paying an extra $100 per month.” © Take Charge Today – August 2013 – Se ng Financial Goals – Page 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Ins tute at The University of Arizona 2.1.4.F1 Refer to the financial goal you indicated on page one. Re‐write this goal to include all elements of a successful SMART goal: A Y G To achieve your financial SMART goal you must manage and monitor your progress to ensure its success. This is one of the most important parts of goal se ng. Below are some ps that will help you manage and a ain your goals. Frequently Evaluate Your Goals Events might happen that get in the way of reaching your goal. If this happens, consider all of your op ons. Should you change your goal? Can you reduce or manage the obstacles that are interfering with you achieving your goal? If you’re considering giving up on your goal, try rewri ng it first to deal with the factors that are ge ng in your way. Successful goal achievement relies on your ability to refocus, rewrite your goal if necessary and eliminate barriers to success. Reward Yourself for Reaching Your Goal Reaching your goal should be a reward in itself. However, some mes we like to celebrate our achievements with addi onal rewards. Knowing you’re going to give yourself an addi onal reward upon achieving your goal can be an addi onal mo vator. If others have helped you reach your goal invite them to join you in the celebra on as well. Visit the Consumer Jungle website www.consumerjungle.org to access goal se ng websites. Set a Realis c Goal If you find that you are having a difficult me reaching your goal, check to see if your goal is realis c. O en, op mis c goal se ng creates an unrealis c goal. Your goal may require more me or money than you have available. Or, your goal may require you to give up too much of something else (the opportunity cost of your trade‐off is too high). The best goal requires effort and discipline on your part but will nevertheless offer a high chance of success. A er all, success is what you are a er not failure. Make Your Goal Public To help you manage and achieve your goal, consider making your goal public. Here are some ways to do that: Share your goal with your family and friends and ask them to hold you accountable. Your family and friends can then support your decisions that lead to the achievement of your goal. Use a support group. For example, people who are trying to lose weight o en find it helpful to belong to a support group of people who are trying to accomplish the same goal. Use a goal‐se ng website or app to track your goal and hold you accountable. These sites o en allow you to compare your progress with people who have similar goals. Some goal‐se ng websites offer the op on to make your goal public. What are two methods that would be helpful to you in managing and monitoring your goal? © Take Charge Today – August 2013 – Se ng Financial Goals – Page 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Ins tute at The University of Arizona
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