Personal Finance 8/9 A (S.M.A.R.T. Goals)

What are the 6 steps of financial planning?

1. Determine your current financial situation 2. Develop your S.M.A.R.T. financial goals 3. Identify your options 4. Evaluate your options 5. Create and use your financial plan of action 6. Review and revise your plan of action

What Is a S.M.A.R.T. Goal?

A specific, time bound goal that can be long term or short term that will help you to better achieve your goals.

What does the "A" stand for?

ATTAINABLE: Determine how the goal can be reached, which is often determined by the individuals budget.

What are the factors that can influence decision making?

Age, Values, Family, Peers.

What is a significant aspect of decision making in financial planning?

Every decision made today affects decisions made in the future.

What does the "M" stand for?

MEASURABLE: Write the exact dollar amount that the goal is for.

What are the benefits of financial planning?

More money, financial security, knowing how to use your money to achieve your goals, saves you from getting into debt you can't handle.

What does the "R" stand for?

REALISTIC: Do not set a goal for something unrealistic or unattainable.

What does the "S" stand for?

SPECIFIC: State exactly what is supposed to be done with the money involved.

What does the "T" stand for?

TIME BOUND: Specifically state when the goals need to be reached by (MM/DD/YYYY).

What is the purpose of goal setting in the financial planning process?

To provide direction for planning and action.