About Me

About Me

• Lesson Objectives– Apply creative thinking skills to express one’s

values, needs, wants, and goals– Demonstrate the ability to present personal

information

About Me• A person is defined by their values, goals,

needs, and wants.

• Value (definition)– A fundamental belief or practice about what is

desirable, worthwhile, and important to an individual.

• Goal (definition)– The end result of something a person intends

to acquire, achieve, do, reach, or accomplish sometime in the near or distant future.

About Me• A person is defined by their values, goals,

needs, and wants.

• Need (definition) – Something thought to be necessary; essential

items required for life.

• Want (definition) – Something unnecessary but desired; items

which increase the quality of living.

About Me• A person is defined by their values, goals,

needs, and wants.

• It is important to examine your lifestyle and what you enjoy before attempting to define personal values.

About Me

• “About Me” Time Capsule – Worksheet

– Homework• Picture or illustration

About Me

• Your personal finance decisions will be influenced by your values, goals, needs, and wants.

About Me

• Lesson Objectives – Review– Apply creative thinking skills to express one’s

values, needs, wants, and goals– Demonstrate the ability to present personal

information

LIFE CYCLEOF

FINANCIAL PLANNING

Life Cycle of Financial Planning

• Lesson Objectives– Analyze lifestyle conditions which may affect

one’s financial situation throughout the life cycle

– Identify financial needs throughout the life cycle

– Apply life cycle financial planning when implementing a personal financial management plan

“Everyone follows the same financial plan.”

True or False?

Life Cycle of Financial Planning

“Everyone follows the same financial plan.” - False!

• People do not have exactly the same – life experience – major life events– financial plans

Life Cycle of Financial Planning

Life Cycle of Financial Planning

• Financial planning (definition)– A tool used to achieve financial success

based upon the development and implementation of financial goals.

Life Cycle of Financial Planning

• Lifestyle conditions which may occur to change the financial plan of an individual or family:

a) Marital status– Single, married, divorced, widowed

b) Employment status– Employed, unemployed, facing unemployment

c) Age

d) Number of dependents– Children, spouse, parents, other family members

Life Cycle of Financial Planning

• Lifestyle conditions which may occur to change the financial plan of an individual or family:

e) Economic outlook– Interest rates, employment level, salary rates

f) Education– Education level of family members, tuition needs

for children

g) Health status

Life Cycle of Financial Planning

• Lifestyle conditions which may occur to change the financial plan of an individual or family:

Example: A 17-year-old single mother’s financial plan is different than a 17-year-old student without a child.

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

– The bell curve represents the traditional wealth one accumulates during the life cycle in three stages.

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

– Stage 1: Basic Wealth ProtectionThe beginning of the curve is where a person

“quits giving money to others.” This is the family formation stage for many people. This is when an individual may be beginning to earn money, continuing education, starting a job or career, and/or starting a family. The individual should be focusing on gaining wealth and earnings.

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

– Stage 2: Wealth AccumulationThe second stage is where a person is “giving

the money to self.” The household head has reached peak earning years, is accumulating wealth, and approaching retirement.

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

– Stage 3: Wealth DistributionThe last stage involves “giving the money to

your chosen ones.” This stage is also known as retirement, where consumption of wealth occurs, and involves estate planning.

Life Cycle of Financial Planning

An Individual’s Financial Life Cycle graph 1.11.2.D2

Summary:

An individual or family will set specific financial goals to be met during their life cycle.

Life Cycle of Financial Planning

Personal Financial Management Pyramid 1.11.2.D1

– Illustrates the same idea as the graph, however …

• The graph shows the visual timeline• The pyramid lists things which occur over a

life cycle

– The levels of the pyramid contribute to a well-managed and balanced financial plan recommended for individuals

Life Cycle of Financial Planning

Personal Financial Management Pyramid 1.11.2.D1

Summary:

Building a solid financial foundation allows a person to build wealth and move up the pyramid.

– It is based on a hierarchy where decisions at one level affect the other levels. As a person moves up the pyramid, their financial plan becomes more complex.

Life Cycle of Financial Planning

• Life Cycle (definition)– A series of stages in which an individual

passes during his/her lifetime.

Life Cycle of Financial Planning

• Life Cycle Needs– Group activity

Life Cycle of Financial Planning

• Life Cycle Needs– Group activity

• Brainstorm activities and events which require financial planning for your assigned age group and write your ideas on the poster board

Life Cycle of Financial Planning

• Life Cycle (definition)– A series of stages in which an individual

passes during his/her lifetime.

• Remember … the age at which events occur can drastically vary among people.

Life Cycle of Financial Planning

• Life Cycle Needs

• Homework

– Life Cycle Needs – “Sally’s Scenario” worksheet

– Personal Life Cycle of financial Planning worksheet 1.11.2.A1

Review

“Everyone follows the same financial plan.” - False!

• People do not have exactly the same – life experience – major life events– financial plans

Life Cycle of Financial Planning

Life Cycle of Financial Planning

• Lesson Objectives – Review– Analyze lifestyle conditions which may affect

one’s financial situation throughout the life cycle

– Identify financial needs throughout the life cycle

– Apply life cycle financial planning when implementing a personal financial management plan

INTEREST INVENTORY

Interest Inventory

• Lesson Objectives– Discuss the steps involved in successfully

setting and achieving career goals– Evaluate potential career areas based upon

the results of an interest inventory test

“People find one career path to follow throughout their lifetime.”

True or False?

Interest Inventory

“People find one career path to follow throughout their lifetime.” - False!

• Career development is a lifelong process.• Workers tend to change careers and jobs

many times.

Interest Inventory

What’s the difference between a job and a career?

Interest Inventory

What’s the difference between a job and a career?

• Job (definition)– An employment position obtained mainly to

earn money.

• Career (definition)– A commitment to a profession which requires

continued training and offers a clear path for occupational growth.

Interest Inventory

• What are you looking for in a career?– Income, job security, opportunity for

advancement, etc.

Interest Inventory

• Do you feel that your career goals may change in 10 years?

Interest Inventory

• How many of you are planning on having a family?

• How will this influence your career goals?

Interest Inventory

• Have you chosen a career path already?

– If not, an interest inventory may provide you with potential career paths which match personal interests and aptitudes.

– If yes, an interest inventory may show you additional careers to consider.

• Interest inventory test (definition)– A test which performs a self-assessment of

personal interests and values to suggest potential career paths.

Interest Inventory

• Occupational cluster (definition)– Career path with many job opportunities.

• Example: an individual with a marketing degree may work in marketing research, advertising, sales, public relations, or management.

• What are some other occupational clusters?

Interest Inventory

Interest Inventory

• Activities

– Personality Mosaic Test worksheet 1.1.6.A2

– Scoring Answers for the Personality Mosaic worksheet 1.1.6.A3

Interest Inventory

• Homework

– Personality Mosaic Career Options worksheet 1.6.1.A4

– Interest inventory Research Information worksheet 1.1.6.A1

Interest Inventory

• Lesson Objectives -- Review– Discuss the steps involved in successfully

setting and achieving career goals– Evaluate potential career areas based upon

the results of an interest inventory test