Financial Planning and
Setting Goals
Adapted from Family Economics and
Financial Education
Craig Vattiat
Financial Planning
Financial Planning is critical to financial success. A financial
plan is your strategy or game plan for achieving your goals.
Components include how you will:
Earn an Income
Save and Invest
Reduce Risk/Insure Yourself
Managing Taxes
Budget and make spending decisions
Determining priorities and goal setting is the first step in
financial planning.
Begin here: What is important to you in life? What do you
Why Set Goals?
YOLO the right way! Minimize regrets and get the most that life has to offer.
Goals:
Give us direction, purpose
Help us achieve more
Help us to prioritize so we can keep focus.
Should be inspiring and exciting
Helps build confidence as we achieve them
“Few good things just happen - they come with planning and hard work.
Once a person achieves a goal, the accomplishment generates new
Values Influence Goals
Values are your principles—the standards by which you
live.
Examples of values: Service to others, care for the
environment, faith, hard work, tradition, money, creativity.
Values change over time (ex: moms at home).
Influenced by parents, friends, experiences, what you
read/hear/see.
Everyone has different values. We’d spend $20 differently.
What do you want to accomplish in life?
What is important to you? Answer the following:
My values are…
My dream life looks like…
At the end of my life, I will have…
Does success just happen?
No. If you want anything, you have to be willing to
work for it and must plan for it.
Planning: A systematic decision making process
1. Determining priorities and creating SMART goals.
2. Gathering and analyzing information about how to
achieve goals.
3. Putting together a strategy/plan.
4. Implementing the plan.
Time Frames
Goal Category
Short Term
Long Term
Academic
Trimester G.P.A.
College Degree
Financial
Save $200 for phone
Buy a Home
Physical
Complete a 5k Race
Run the Boston Marathon
Interests
Knit a Sweater
Travel to all Continents
Employment
Get a Summer Job
Become a Police Officer
Goal Categories
Community - volunteering, extra curricular
Academic - grades, attendance, senior project, SAT/ACT,
honor diploma, test taking, scholarships, college degree
Personal Management - time use, relaxation,
organization, stress management
Financial - career, purchasing, investing, saving, debt
Physical - health/diet, exercise, sports achievement
Interests/Hobbies - crafts, travel, recreation, making
something, learning something
SMART Goals
SMART
Goals
SMART
Goals
Specific
Specific
Measurable
Measurable
Action Steps
or Achievable
Action Steps
or Achievable
Realistic or
Relevant
Realistic or
Relevant
Time Bound
Time Bound
Where will this take place?
Why do I want to accomplish the goal?
Measurable
How will I know I’ve succeeded?
How many accomplishments or actions will it take?
Attainable or
Action Steps
Do I have or can I get, the resources needed to achieve the goal?
Where do I start? What must come next?
Is the goal a reasonable stretch for me? (neither out of reach not too
easy)
Are the actions I plan to take likely to bring success?
Relevant
Is this a worthwhile goal for me right now?
Is it meaningful to me—or just something others think I should do?
Would it delay or prevent me from achieving a more important goal?
Am I willing to commit to achieving this goal?
Time-Bound
What is the deadline for reaching the goal?
goals?
Indicate which of the SMART components are missing.
1. I will be a nicer person.
Not measurable.
2. I will earn a 4.0 GPA this trimester.
Good. Is it realistic based off of your past performance?
3. I will try to get a job.
“Do or do not , there is no try.” Not specific enough or time bound.
4. I will buy a car.
Not specific or time bound
5. I will go to college in 4 years.
Not specific. You just want to go and not graduate? What will you study?
6. I want to win district in the javelin this year.
Thinking a Goal Through
Asking the following questions can help you to focus
on the action steps that lead to achievement of the
greater goal:
What skills do I need to achieve this?
What information and knowledge do I need?
What help, assistance, or collaboration do I need?
What resources do I need?
What can block progress?
Am I making any assumptions?
Is there a better way of doing things?
What comes first? What comes next?
behaviors
Once you have set a goal, your behavior (the things
you do) must move you towards completion.
You can’t say I’m going to become a doctor and then
not attend class.
Smart Goal Tips
Keep your goals in writing and in a visible location.
You are more likely to stay motivated.
Share your goals with someone who cares. They can
keep you accountable and encourage you.
Review your goals frequently and revise as necessary.
Use “I will” statements. These are intentional and
Summarize
What is a goal?
Why is goal setting important?
Goal Setting Reflection
1.
Why is goal setting important and how can it impact
your life?
2.
What makes a good goal?
3.
Which goal(s) is/are the most pressing or important
for you? Why?
4.
What are your concerns as you begin work on
them? How confident are you in completing them?
What can you do to improve your chances of
