1 / 25

WHEN IT COMES TO MONEY, WHY DO WE DO WHAT WE DO?

WHEN IT COMES TO MONEY, WHY DO WE DO WHAT WE DO?. By Julie Chapman for. FINANCIAL DECISIONS IMPACTED BY:. PERCEPTION OF NEED VS. WANT PERSONAL VALUES OPPORTUNITY COSTS. FINANCIAL DECISIONS IMPACTED BY:. NEED VS. WANT NEED – SOMETHING THAT IS ESSENTIAL; REQUIRED FOR LIFE

rtruman
Télécharger la présentation

WHEN IT COMES TO MONEY, WHY DO WE DO WHAT WE DO?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WHEN IT COMES TO MONEY,WHY DO WE DO WHAT WE DO? By Julie Chapman for

  2. FINANCIAL DECISIONS IMPACTED BY: • PERCEPTION OF NEED VS. WANT • PERSONAL VALUES • OPPORTUNITY COSTS

  3. FINANCIAL DECISIONS IMPACTED BY: • NEED VS. WANT • NEED – SOMETHING THAT IS ESSENTIAL; REQUIRED FOR LIFE • WANT – SOMETHING THAT IS UNECESSARY BUT DESIRED; MAY IMPROVE QUALITY OF LIFE

  4. FINANCIAL DECISIONS IMPACTED BY: • NEED VS. WANT • IS EACH OF THE FOLLOWING A NEED OR A WANT? • FOOD • CAR • HOUSE • COAT • CELL PHONE • CLOTHES

  5. FINANCIAL DECISIONS IMPACTED BY: • PERSONAL VALUES • THOSE THINGS THAT ARE IMPORTANT TO YOU. • FAMILY LAW SUCCESS • FRIENDS HONESTY SERVICE TO OTHERS • RELIGION EDUCATION HEALTH

  6. FINANCIAL DECISIONS IMPACTED BY: • PERSONAL VALUES • EACH PERSONS VALUES ARE DIFFERENT. • USING SCRATCH PAPER PLACE THE VALUES LISTED IN ORDER FROM MOST IMPORTANT TO LEAST IMPORTANT USING NUMBER 1-9. • FAMILY LAW SUCCESS • FRIENDS HONESTY SERVICE TO OTHERS • RELIGION EDUCATION HEALTH

  7. FINANCIAL DECISIONS IMPACTED BY: • PERSONAL VALUES • VERY FEW PEOPLE WILL HAVE THE SAME ORDER. • THAT IS BECAUSE VALUES ARE HIGHLY PERSONAL! • THESE VALUES SHAPE CHOICES, FINANCIAL AND OTHERWISE.

  8. FINANCIAL DECISION IMPACTED BY: OPPORTUNITY COSTS THE VALUE OF THE NEXT BEST CHOICE THAT IS GIVEN UP WHEN MAKING A DECISION. • WHAT IS THE OPPORTUNITY COST OF GOING TO COLLEGE? • THE INCOME GIVEN UP THAT COULD HAVE BEEN EARNED IF YOU WERE WORKING

  9. FINANCIAL DECISION IMPACTED BY: • OPPORTUNITY COSTS • WHAT IS THE OPPORTUNITY COST OF CHOOSING TO GO TO THE MOVIES ON FRIDAY NIGHT?

  10. FINANCIAL DECISION IMPACTED BY: • OPPORTUNITY COSTS • WHAT IS THE OPPORTUNITY COST OF CHOOSING TO DRIVE A NEW PICK-UP TRUCK? • MORE MONEY WAS SPENT ON A NEW CAR INSTEAD OF A USED CAR AND FUEL COST ARE HIGHER ON A BIG TRUCK!

  11. WHEN IT COMES TO MONEY,WHY DO WE DO WHAT WE DO? • HOW WE DECIDE BETWEEN OUR NEEDS VS. WANTS INFLUENCES OUR SPENDING DECISIONS. • OUR PERSONAL VALUES INFLUENCE OUR SPENDING DECISIONS. • THE COSTS OR BENEFITS THAT WE FOREGO WHEN WE MAKE A SPENDING DECISION MUST BE CONSIDERED.

  12. DECISIONS, DECISIONS… • When faced with making a difficult choice, where do you start? • How do you decide? • There is a 6 step process that can help you make an informed decision. • Identify your PROBLEM • List possible SOLUTIONS • Evaluate your OPTIONS • Consider PERSONAL VALUES • Make your DECISION • EVALUATE

  13. 1. IDENTIFY YOUR PROBLEM • DEFINE THE PROBLEM. • BE SPECIFIC!

  14. 2. LIST POSSIBLE SOLUTIONS • MAKE A COMPLETE LIST OF SOLUTIONS. PRIORITIZE THE MOST FEASABLE AND FORGET THE REST. DON’T OVERWHELM YOURSELF WITH TOO MANY CHOICES!

  15. 3. EVALUATION YOUR OPTIONS • LIST THE PROS AND CONS OF EACH OPTION. • CONSIDER POSITIVE AND NEGATIVE OUTCOMES FOR EACH SOLUTION

  16. 4. CONSIDER PERSONAL VALUES • WHAT IS MOST IMPORTANT TO YOU??

  17. 5. MAKE THE DECISION • Choose the option with the most positives and/or least negatives that is consistent with your personal values.

  18. 6. Evaluate your decision • Discuss the outcome of your decision • Continue to monitor the results

  19. GOALS • Setting goals is an important part of being successful. Goals are something you aim for. Goals point you in the direction you need to take. Knowing what you’re aiming for makes it a lot easier to map out a process to meet your goal. • SHORT-TEM GOALSare goals you want to achieve within the next three months • INTERMEDIATE-TERM GOALS are goals set for three months to a year. • LONG-TERM GOALSare ones that it will take more than a year to achieve.

  20. SETTING GOALS THE S.M.A.R.T. WAY • S-SPECIFIC • M-MEASURABLE • A-ATTAINABLE • R-REALISTIC • T-TIME BOUND

  21. specific • What? • How? • Who?

  22. measurable • How will you know if you make it??

  23. Attainable • Can you truly reach this goal? It doesn’t have to be easy, but is it possible?

  24. realistic • The goal must be something that you are willing and able to work toward

  25. Time bound • Your goal should be grounded within a time frame. With no time limit, there will be no urgency.

More Related