SlideShare una empresa de Scribd logo
1 de 18
Descargar para leer sin conexión
Mr. Elsesser
Introduction to Financial Management
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Objective:
• Define the purpose of Decision Making
and creating a Financial Plan
• Analyze trade offs of an economic decision
• Identify economic risk factors to consider in
the decision making process
Do Now:
How does the process of Decision Making
relate to your SMART Goals project?
Decision Making and Financial Planning

The Decision- Making
Process
Identify Your
Goal

The Financial
Planning Process
Set Goals

Establish
Criteria
Weigh Pros
and Cons
Make a Decision
Evaluate
Results
1-L

Analyze
Information
Create a Plan
Implement
the Plan
Monitor & Modify
the Plan
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Financial Planning also means....
Decision Making…

Opportunity Cost

Alternatives

Risk

Consequences
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

You Know What You Want
In order to make a good decision you must be informed of
what you need to do to achieve it!

What is opportunity cost?
A possibility that you give up when
you make one choice instead
of another.
Example: You can buy

1-M

save
plan

coffee every day or
money and get a data
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Opportunity Cost
“Consequences of Choices”

**A Trade off…...
**Refers to what you give up when a decision is made or
the cost of giving up one thing in order to get something
that you want more;
**The cost may involve your time, money, and/or effect
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Identifying More Examples:
Personal:
For example time spent on studying usually means lost
time for hanging out with your friends.
Financial:
For example, the purchase of an item with money from
your savings means your will no longer earn interest on
that money
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Consequences

**Outcomes or results of a decision;
**What will happen depending upon what you
choose to do.
**These are determined by your actions or lack
of actions
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Alternatives

**Choices….
**Different ways to solve a problem;
**Opportunities to choose between several
courses of action
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Risk

**The possibility that your decision will
result in a negative outcome;
**Taking a chance;
**Risk may involve losing money
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Risk

1) Inflation Risk
2) Interest Rate Risk
3) Income Risk
4) Personal Risk
5) Liquidity Risk
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Inflation Risk

Inflation is the rise in the level of prices
for goods and services over time
Inflation Risk Example:
If you wait to buy a car until next
year, you accept the possibility that the
price may increase.
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Interest Rate Risk

Interest is the price that is paid for the
use of another’s money
Interest Rate Risk Example:
Interest rates go up and down, which
may affect the cost of borrowing or the
profits you earn when you save or invest
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Income Risk

Income Risk – you may lose your job due
to unexpected health problems, family
problems, an accident, or changes in your
field of work
How Can you prepare?
Prepare and save – build up 3-4 months of
savings to cover cost of living
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Personal Risk

Personal Risk: Risk you assume yourself
based upon your actions or choices.
Personal Risk Example –
Driving for eight hours on icy mountain
roads may not be worth the money you
would save on airfare.
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

Liquidity Risk

Liquidity is the ability to easily convert
your financial resources to cash without a
loss in value
Liquidity Risk Example:

Some long-term investments, such as a house or an
antique doll collection, can be difficult to convert to
cash quickly.
Other Influences
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins
NEFE High School Financial Planning Program
Unit One - Your Financial Plan: Where It All Begins

In Order to Make a Good Choice…

Find Advice; Find Information
Making a good choice equals using…

People

Internet

Magazines
Books
Social Media

Agencies

Other
Publications

Más contenido relacionado

Similar a Unit 1B - SMART Goals & Decision Making

HUSC 3366 Chapter 1 Personal Finance in Action
HUSC 3366 Chapter 1 Personal Finance in Action HUSC 3366 Chapter 1 Personal Finance in Action
HUSC 3366 Chapter 1 Personal Finance in Action Rita Conley
 
Personal Financial Planning PPT.pptx
Personal Financial Planning PPT.pptxPersonal Financial Planning PPT.pptx
Personal Financial Planning PPT.pptxShahnawazAli81
 
How to Build Wealth for Financial Independence by Martize Smith
How to Build Wealth for Financial Independence by Martize SmithHow to Build Wealth for Financial Independence by Martize Smith
How to Build Wealth for Financial Independence by Martize SmithFinancial Scope
 
Vladimir tingue - personal financial planning
Vladimir tingue -  personal financial planningVladimir tingue -  personal financial planning
Vladimir tingue - personal financial planningVladimirTingue
 
consumer-guide-to-financial-planning
consumer-guide-to-financial-planningconsumer-guide-to-financial-planning
consumer-guide-to-financial-planningSarah Arthur
 
VVS Ventures-Financial Planner
VVS Ventures-Financial PlannerVVS Ventures-Financial Planner
VVS Ventures-Financial PlannerVinayak Sapre
 
Elements of Financial Planning
Elements of Financial PlanningElements of Financial Planning
Elements of Financial PlanningDhanashri Academy
 
Ammad awan glasgow - personal financial planning
Ammad awan glasgow -  personal financial planningAmmad awan glasgow -  personal financial planning
Ammad awan glasgow - personal financial planningAmmadAwanGlasgow
 
2013-05-05 ACR Fundamentals of Financial Planning
2013-05-05 ACR Fundamentals of Financial Planning2013-05-05 ACR Fundamentals of Financial Planning
2013-05-05 ACR Fundamentals of Financial PlanningRaffa Learning Community
 
Personal Finance Income management ppt.ppt
Personal Finance Income management ppt.pptPersonal Finance Income management ppt.ppt
Personal Finance Income management ppt.pptetebarkhmichale
 
Personal Financial Management.ppt
Personal Financial Management.pptPersonal Financial Management.ppt
Personal Financial Management.pptetebarkhmichale
 
Consumer Guide to Financial Planning
Consumer Guide to Financial PlanningConsumer Guide to Financial Planning
Consumer Guide to Financial PlanningDana Ray Reynolds
 
Financial Planning 1
Financial Planning 1Financial Planning 1
Financial Planning 1Righthorizon
 
Financial Planning 2
Financial Planning 2Financial Planning 2
Financial Planning 2Righthorizon
 

Similar a Unit 1B - SMART Goals & Decision Making (20)

HUSC 3366 Chapter 1 Personal Finance in Action
HUSC 3366 Chapter 1 Personal Finance in Action HUSC 3366 Chapter 1 Personal Finance in Action
HUSC 3366 Chapter 1 Personal Finance in Action
 
Personal Financial Planning PPT.pptx
Personal Financial Planning PPT.pptxPersonal Financial Planning PPT.pptx
Personal Financial Planning PPT.pptx
 
Madura 16816 x_ppt01
Madura 16816 x_ppt01Madura 16816 x_ppt01
Madura 16816 x_ppt01
 
How to Build Wealth for Financial Independence by Martize Smith
How to Build Wealth for Financial Independence by Martize SmithHow to Build Wealth for Financial Independence by Martize Smith
How to Build Wealth for Financial Independence by Martize Smith
 
Vladimir tingue - personal financial planning
Vladimir tingue -  personal financial planningVladimir tingue -  personal financial planning
Vladimir tingue - personal financial planning
 
Consumer Guide to Financial Planning
Consumer Guide to Financial PlanningConsumer Guide to Financial Planning
Consumer Guide to Financial Planning
 
consumer-guide-to-financial-planning
consumer-guide-to-financial-planningconsumer-guide-to-financial-planning
consumer-guide-to-financial-planning
 
VVS Ventures-Financial Planner
VVS Ventures-Financial PlannerVVS Ventures-Financial Planner
VVS Ventures-Financial Planner
 
Women and Money
Women and MoneyWomen and Money
Women and Money
 
Elements of Financial Planning
Elements of Financial PlanningElements of Financial Planning
Elements of Financial Planning
 
Financial Planning
Financial PlanningFinancial Planning
Financial Planning
 
Personal financial planning guide
Personal financial planning guidePersonal financial planning guide
Personal financial planning guide
 
Ammad awan glasgow - personal financial planning
Ammad awan glasgow -  personal financial planningAmmad awan glasgow -  personal financial planning
Ammad awan glasgow - personal financial planning
 
Financial Planning
Financial PlanningFinancial Planning
Financial Planning
 
2013-05-05 ACR Fundamentals of Financial Planning
2013-05-05 ACR Fundamentals of Financial Planning2013-05-05 ACR Fundamentals of Financial Planning
2013-05-05 ACR Fundamentals of Financial Planning
 
Personal Finance Income management ppt.ppt
Personal Finance Income management ppt.pptPersonal Finance Income management ppt.ppt
Personal Finance Income management ppt.ppt
 
Personal Financial Management.ppt
Personal Financial Management.pptPersonal Financial Management.ppt
Personal Financial Management.ppt
 
Consumer Guide to Financial Planning
Consumer Guide to Financial PlanningConsumer Guide to Financial Planning
Consumer Guide to Financial Planning
 
Financial Planning 1
Financial Planning 1Financial Planning 1
Financial Planning 1
 
Financial Planning 2
Financial Planning 2Financial Planning 2
Financial Planning 2
 

Más de celsesser

Unit 5: Credit (Notes)
Unit 5: Credit (Notes)Unit 5: Credit (Notes)
Unit 5: Credit (Notes)celsesser
 
Unit 4: Cost of Money
Unit 4: Cost of MoneyUnit 4: Cost of Money
Unit 4: Cost of Moneycelsesser
 
Unit 3B - Checks
Unit 3B - ChecksUnit 3B - Checks
Unit 3B - Checkscelsesser
 
Unit 2C - Money - Paychecks
Unit 2C - Money - PaychecksUnit 2C - Money - Paychecks
Unit 2C - Money - Paycheckscelsesser
 
Unit 2B - Money - All About Income
Unit 2B - Money - All About IncomeUnit 2B - Money - All About Income
Unit 2B - Money - All About Incomecelsesser
 
Unit 2A: Money - All About Money
Unit 2A:  Money - All About MoneyUnit 2A:  Money - All About Money
Unit 2A: Money - All About Moneycelsesser
 
Unit 5: Organizational Behavior
Unit 5: Organizational Behavior Unit 5: Organizational Behavior
Unit 5: Organizational Behavior celsesser
 
Unit 3A: Banking
Unit 3A: BankingUnit 3A: Banking
Unit 3A: Bankingcelsesser
 
Unit 1: Part A - Financial Planning
Unit 1: Part A - Financial PlanningUnit 1: Part A - Financial Planning
Unit 1: Part A - Financial Planningcelsesser
 
Unit 1- Part c - The Ins and Outs of Budgeting
Unit 1- Part c - The Ins and Outs of BudgetingUnit 1- Part c - The Ins and Outs of Budgeting
Unit 1- Part c - The Ins and Outs of Budgetingcelsesser
 
Your Guide to the 2013 Business Olympics: Dress, Creating Videos, PowerPoint...
Your Guide to the 2013 Business Olympics:  Dress, Creating Videos, PowerPoint...Your Guide to the 2013 Business Olympics:  Dress, Creating Videos, PowerPoint...
Your Guide to the 2013 Business Olympics: Dress, Creating Videos, PowerPoint...celsesser
 
Unit 6 - Role of Government In Business - Notesdes
Unit 6 - Role of Government In Business - NotesdesUnit 6 - Role of Government In Business - Notesdes
Unit 6 - Role of Government In Business - Notesdescelsesser
 
Unit 5 - Global Business Notes
Unit 5 - Global Business NotesUnit 5 - Global Business Notes
Unit 5 - Global Business Notescelsesser
 
Unit 2: Business Ethics & Social Responsibility
Unit 2: Business Ethics & Social ResponsibilityUnit 2: Business Ethics & Social Responsibility
Unit 2: Business Ethics & Social Responsibilitycelsesser
 
Unit 4 Business Ownership & Operations Notes
Unit 4    Business Ownership & Operations NotesUnit 4    Business Ownership & Operations Notes
Unit 4 Business Ownership & Operations Notescelsesser
 
Business Olympics 2012 Training Materials (Hennings/Elsesser)
Business Olympics 2012 Training Materials (Hennings/Elsesser)Business Olympics 2012 Training Materials (Hennings/Elsesser)
Business Olympics 2012 Training Materials (Hennings/Elsesser)celsesser
 
Unit 2B: Players on the Stock Exchange Notes
Unit 2B: Players on the Stock Exchange NotesUnit 2B: Players on the Stock Exchange Notes
Unit 2B: Players on the Stock Exchange Notescelsesser
 
Unit 6: Analyzing Common Stock Notes
Unit 6: Analyzing Common Stock NotesUnit 6: Analyzing Common Stock Notes
Unit 6: Analyzing Common Stock Notescelsesser
 
Unit 4: Investments Notes
Unit 4: Investments NotesUnit 4: Investments Notes
Unit 4: Investments Notescelsesser
 
Unit 3 - Indicators for Investors Notes
Unit 3 - Indicators for Investors NotesUnit 3 - Indicators for Investors Notes
Unit 3 - Indicators for Investors Notescelsesser
 

Más de celsesser (20)

Unit 5: Credit (Notes)
Unit 5: Credit (Notes)Unit 5: Credit (Notes)
Unit 5: Credit (Notes)
 
Unit 4: Cost of Money
Unit 4: Cost of MoneyUnit 4: Cost of Money
Unit 4: Cost of Money
 
Unit 3B - Checks
Unit 3B - ChecksUnit 3B - Checks
Unit 3B - Checks
 
Unit 2C - Money - Paychecks
Unit 2C - Money - PaychecksUnit 2C - Money - Paychecks
Unit 2C - Money - Paychecks
 
Unit 2B - Money - All About Income
Unit 2B - Money - All About IncomeUnit 2B - Money - All About Income
Unit 2B - Money - All About Income
 
Unit 2A: Money - All About Money
Unit 2A:  Money - All About MoneyUnit 2A:  Money - All About Money
Unit 2A: Money - All About Money
 
Unit 5: Organizational Behavior
Unit 5: Organizational Behavior Unit 5: Organizational Behavior
Unit 5: Organizational Behavior
 
Unit 3A: Banking
Unit 3A: BankingUnit 3A: Banking
Unit 3A: Banking
 
Unit 1: Part A - Financial Planning
Unit 1: Part A - Financial PlanningUnit 1: Part A - Financial Planning
Unit 1: Part A - Financial Planning
 
Unit 1- Part c - The Ins and Outs of Budgeting
Unit 1- Part c - The Ins and Outs of BudgetingUnit 1- Part c - The Ins and Outs of Budgeting
Unit 1- Part c - The Ins and Outs of Budgeting
 
Your Guide to the 2013 Business Olympics: Dress, Creating Videos, PowerPoint...
Your Guide to the 2013 Business Olympics:  Dress, Creating Videos, PowerPoint...Your Guide to the 2013 Business Olympics:  Dress, Creating Videos, PowerPoint...
Your Guide to the 2013 Business Olympics: Dress, Creating Videos, PowerPoint...
 
Unit 6 - Role of Government In Business - Notesdes
Unit 6 - Role of Government In Business - NotesdesUnit 6 - Role of Government In Business - Notesdes
Unit 6 - Role of Government In Business - Notesdes
 
Unit 5 - Global Business Notes
Unit 5 - Global Business NotesUnit 5 - Global Business Notes
Unit 5 - Global Business Notes
 
Unit 2: Business Ethics & Social Responsibility
Unit 2: Business Ethics & Social ResponsibilityUnit 2: Business Ethics & Social Responsibility
Unit 2: Business Ethics & Social Responsibility
 
Unit 4 Business Ownership & Operations Notes
Unit 4    Business Ownership & Operations NotesUnit 4    Business Ownership & Operations Notes
Unit 4 Business Ownership & Operations Notes
 
Business Olympics 2012 Training Materials (Hennings/Elsesser)
Business Olympics 2012 Training Materials (Hennings/Elsesser)Business Olympics 2012 Training Materials (Hennings/Elsesser)
Business Olympics 2012 Training Materials (Hennings/Elsesser)
 
Unit 2B: Players on the Stock Exchange Notes
Unit 2B: Players on the Stock Exchange NotesUnit 2B: Players on the Stock Exchange Notes
Unit 2B: Players on the Stock Exchange Notes
 
Unit 6: Analyzing Common Stock Notes
Unit 6: Analyzing Common Stock NotesUnit 6: Analyzing Common Stock Notes
Unit 6: Analyzing Common Stock Notes
 
Unit 4: Investments Notes
Unit 4: Investments NotesUnit 4: Investments Notes
Unit 4: Investments Notes
 
Unit 3 - Indicators for Investors Notes
Unit 3 - Indicators for Investors NotesUnit 3 - Indicators for Investors Notes
Unit 3 - Indicators for Investors Notes
 

Último

Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfMytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfNewsroom8
 
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdfjamie766122
 
Islamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowIslamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowhamidzafar6
 
The Role of Non-Banking Financial Companies (NBFCs).pdf
The Role of Non-Banking Financial Companies (NBFCs).pdfThe Role of Non-Banking Financial Companies (NBFCs).pdf
The Role of Non-Banking Financial Companies (NBFCs).pdfChampak Jhagmag
 
Stock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfStock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfMichael Silva
 
2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentationAdnet Communications
 
2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdfAdnet Communications
 
powerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismpowerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismrezeraaisla
 
Challenging Factors of Rural Women Entrepreneurs in West Bengal
Challenging Factors of Rural Women Entrepreneurs in West  BengalChallenging Factors of Rural Women Entrepreneurs in West  Bengal
Challenging Factors of Rural Women Entrepreneurs in West BengalNabarun Chakraborty
 
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXAUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXkamikazekujoh
 
Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Commonwealth
 
renaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismrenaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismthxz2fdqxw
 
Swift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfSwift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfNeo4j
 
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...indexPub
 
First, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssFirst, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssAsad Zaman
 
Buy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinBuy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinJasper Colin
 
Pros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPark Place Finance LLC
 
Planning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyPlanning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyStefanMz
 
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBBIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBNeil Day
 

Último (20)

Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfMytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
 
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
 
Islamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowIslamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until now
 
The Role of Non-Banking Financial Companies (NBFCs).pdf
The Role of Non-Banking Financial Companies (NBFCs).pdfThe Role of Non-Banking Financial Companies (NBFCs).pdf
The Role of Non-Banking Financial Companies (NBFCs).pdf
 
Stock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfStock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdf
 
2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation
 
2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf
 
powerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismpowerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalism
 
Challenging Factors of Rural Women Entrepreneurs in West Bengal
Challenging Factors of Rural Women Entrepreneurs in West  BengalChallenging Factors of Rural Women Entrepreneurs in West  Bengal
Challenging Factors of Rural Women Entrepreneurs in West Bengal
 
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXAUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
 
Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]
 
renaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismrenaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxism
 
Swift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfSwift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdf
 
Closing Remarks International Women's Day 2024
Closing Remarks International Women's Day 2024Closing Remarks International Women's Day 2024
Closing Remarks International Women's Day 2024
 
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
 
First, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssFirst, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic Economicss
 
Buy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinBuy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper Colin
 
Pros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR Loans
 
Planning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyPlanning of societal re/production in a commonist society
Planning of societal re/production in a commonist society
 
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBBIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
 

Unit 1B - SMART Goals & Decision Making

  • 1. Mr. Elsesser Introduction to Financial Management
  • 2. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Objective: • Define the purpose of Decision Making and creating a Financial Plan • Analyze trade offs of an economic decision • Identify economic risk factors to consider in the decision making process Do Now: How does the process of Decision Making relate to your SMART Goals project?
  • 3. Decision Making and Financial Planning The Decision- Making Process Identify Your Goal The Financial Planning Process Set Goals Establish Criteria Weigh Pros and Cons Make a Decision Evaluate Results 1-L Analyze Information Create a Plan Implement the Plan Monitor & Modify the Plan
  • 4. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Financial Planning also means.... Decision Making… Opportunity Cost Alternatives Risk Consequences
  • 5. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins You Know What You Want In order to make a good decision you must be informed of what you need to do to achieve it! What is opportunity cost? A possibility that you give up when you make one choice instead of another. Example: You can buy 1-M save plan coffee every day or money and get a data
  • 6. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Opportunity Cost “Consequences of Choices” **A Trade off…... **Refers to what you give up when a decision is made or the cost of giving up one thing in order to get something that you want more; **The cost may involve your time, money, and/or effect
  • 7. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Identifying More Examples: Personal: For example time spent on studying usually means lost time for hanging out with your friends. Financial: For example, the purchase of an item with money from your savings means your will no longer earn interest on that money
  • 8. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Consequences **Outcomes or results of a decision; **What will happen depending upon what you choose to do. **These are determined by your actions or lack of actions
  • 9. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Alternatives **Choices…. **Different ways to solve a problem; **Opportunities to choose between several courses of action
  • 10. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Risk **The possibility that your decision will result in a negative outcome; **Taking a chance; **Risk may involve losing money
  • 11. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Risk 1) Inflation Risk 2) Interest Rate Risk 3) Income Risk 4) Personal Risk 5) Liquidity Risk
  • 12. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Inflation Risk Inflation is the rise in the level of prices for goods and services over time Inflation Risk Example: If you wait to buy a car until next year, you accept the possibility that the price may increase.
  • 13. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Interest Rate Risk Interest is the price that is paid for the use of another’s money Interest Rate Risk Example: Interest rates go up and down, which may affect the cost of borrowing or the profits you earn when you save or invest
  • 14. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Income Risk Income Risk – you may lose your job due to unexpected health problems, family problems, an accident, or changes in your field of work How Can you prepare? Prepare and save – build up 3-4 months of savings to cover cost of living
  • 15. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Personal Risk Personal Risk: Risk you assume yourself based upon your actions or choices. Personal Risk Example – Driving for eight hours on icy mountain roads may not be worth the money you would save on airfare.
  • 16. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins Liquidity Risk Liquidity is the ability to easily convert your financial resources to cash without a loss in value Liquidity Risk Example: Some long-term investments, such as a house or an antique doll collection, can be difficult to convert to cash quickly.
  • 17. Other Influences NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins
  • 18. NEFE High School Financial Planning Program Unit One - Your Financial Plan: Where It All Begins In Order to Make a Good Choice… Find Advice; Find Information Making a good choice equals using… People Internet Magazines Books Social Media Agencies Other Publications

Notas del editor

  1. {}