Chapter 9.1

Clarifying your financial goals and what you need to do to reach them.

Live with a specific budget Identify financial priorities Establish funds to pay expenses Reduce or eliminate buying on impulse Prepare to face emergency expenses Reduce worry about financial health Meet long-term financial goals Gain or maintain a sense of financial

stability Work toward retaining understanding of

finances.

Making smart decisions about spending based on the resources available.

Since many teens don’t have to pay for expenses such as groceries, electric bills and rent, they have the freedom to spend their money on other things such as clothing, music and nights out. This can create premature affluence ( a false sense of wealth)

Identifying financial goals Guided by what’s important to you.

Analyze Current Finances Create a budgeting sheet Assets-Items that you own, including your home Liabilities-Debts(money you owe others) Net worth-The difference between your assets and

liabilities. Analyze Spending Habit

Keeping a log of all spending during a typical month

Planning for Financial Goals Developing a budget ( a plan for spending and

saving your funds, based on your income and expenses).

Requires revising your Financial PlanMarriageHaving Children Children Moving OutAging