Wants vs Needs
Typical groceries (fruits, vegetables, grains, meat, etc.)
Need
A framework for setting clear and attainable goals by making them Specific, Measurable, Achievable, Relevant, and Time-bound.
SMART goals
Goals that take less than a year to achieve (saving for a new gaming console or tickets to a concert).
Short-term goals
Love nice cars, new gadgets, and brand-name clothing. Has a tendency to impulse buy and may struggle with debt.
Spender
Why is it important to have sound financial habits when it comes to achieving financial goals?
They help us work towards our financial goals by guiding our spending and saving actions.
A 65-inch 4K television
Want
The ability to understand and use various financial skills, including budgeting, saving, investing, and managing money wisely for a secure future.
Financial Literacy
Goals that take more than a year to achieve (saving for college or to rent your own apartment).
Long-term goals
Shops only when necessary and rarely makes purchases with credit card. May be viewed as frugal. May struggle with spending money on essential items or being generous.
Saver
What role does someone's cultural background play in shaping their relationship with money?
It influences someone's perceptions and behaviors around money.
A pint of ice cream and some cookies.
Want (most of the time)
A person’s tendency or habit regarding how they spend money, whether they spend quickly or cautiously.
Spending Propensity
Obligations and duties that a person must fulfill in order to meet their survival needs and avoid serious financial hardships; these obligations can include paying bills and providing food, shelter, and clothing for one’s family
Financial Responsibilities
Tries to balance spending and saving. Meets theirs needs and still is able to buy some things they want. They may struggle with stressing over purchases and constantly weighing the cost of their choices.
Balancer
What does it mean to live paycheck to paycheck?
Having too little money in savings. Spending nearly all of your earnings each month. Borrowing more money than you are able to comfortably repay.
A monthly $250 investment into an index fund to help retire by 60
Want
Daily or regular behaviors related to money management, like budgeting, tracking expenses, or impulse buying.
Financial Habits
The process of setting goals, budgeting, saving, and investing to manage money effectively now and in the future.
Financial Planning
Focuses on growing money and makes bold choices. Has a tendency to be adventurous and ignores basic needs to take risks on exciting opportunities. Very confident in their financial knowledge, and may even be a little arrogant about their ability to make money
Investor
What did Mr. O say are two main ways to make sure you have enough money to retire when you are older?
*Hint, the words end in "LY"
Save and invest EARLY and CONSISTENTLY.
Professional-looking clothes for work
Need
Having enough money and assets to meet all of your present and future wants and needs—so that you don’t need to worry about your financial situation or depend on a job to earn money.
Financial Independence
Key actions and disciplines that, if performed on a regular basis, can help someone to achieve financial success; examples include making money, saving money, building credit, accounting, budgeting, investing, and financial planning.
Financial Practices
What did Mr. O say his money personality was?
Spender
How does financial literacy influence someone's future?
*Give at least three answers
Empowers people by giving them with the skills to make informed decisions about saving, spending, and investing.
Increases confidence in managing resources, and enhances your ability to plan for long-term goals.
Leads to financial independence.