PF - 1 Persona Financial Goals, & Decision-Making Process- (Sec. 1,2 of 2)- 9/9/17(Sat.)

1 Sec. 2: PACED is a process for finding reliable information.

- True - False answer: - False

1 Sec. 2: Criteria are standards for evaluating something.

- True - False answer: - True

assets

items owned that could be sold for cash

criteria

standards for evaluating something

goal

target or result which is desired

net worth

the amount you have minus the amount you owe

1 Sec. 2: Decisions and goals are connected.

- True - False answer: - True

1 Sec.1: A goal is a result that is desired.

- True - False answer: - True

1 Sec.1: Liabilities are items you own that have value.

- True - False answer: - True

1 Sec.1: Kevin wants to purchase a new snowboard for winter. It costs $300. It is now September. He gets paid every two weeks. After he pays his bills he has about $100 left over. Write a goal for him.

Writer: For every two weeks that he gets paid plus paying his bills with $100 leftover. He can save up the money for another four weeks, which he will have a total of $200. By the end of those six weeks he should have total of $300, which will allow him to buy the snowboard in just six weeks.

1 Sec. 2: Select each of the PACED steps below.

- Define the problem. - Conduct an Internet search for information. - List the alternatives. - Select the criteria. - Evaluate the alternatives. - Make a decision. - Evaluate the decision. answer: - Define the problem. - List the alternatives. - Select the criteria. - Evaluate the alternatives. - Make a decision.

1 Sec.1: You should review your goals about once a month.

- True - False answer: - True

short-term goal

a desired result which may be attained in less than one year

1 Sec.1: Carol has decided that it is very important to her to travel when she graduates high school. She feels that traveling to help people in other countries aligns with God's plan for her. Which of the following would be a helpful goal for her?

- I will buy a plane ticket to travel to Italy. - I will travel after I graduate. - I will work one extra shift per week and set aside $150 per paycheck to purchase a plane ticket to Italy. - I will save $100 per paycheck. answer: - I will work one extra shift per week and set aside $150 per paycheck to purchase a plane ticket to Italy.

1 Sec.1: Select all of the guidelines you should follow when writing your goals.

- Include a plan. - Make your goals measurable. - Make your goals long. - Break down long-term goals into short-term goals. - Memorize your goals. - Use detail. answer: - Use details. - Make your goals measurable. - Include a plan. - Break down long-term goals into short-term goals.

1 Sec.1: Put the following steps for calculating net worth in the correct order. Step #1:______________ Step #2:_______________ Step #3:________________ Step #4:________________ Step #5:_________________

- List your liabilities. - List your assets. - Total your assets. - Subtract your liabilities from your assets. - Total your liabilities. answer: #1: List your assets. #2: Total your assets. #3: List your liabilities. #4: Total your liabilities. #5: Subtract your liabilities from your assets.

1 Sec. 2: Grace would like to open a checking account. She needs to decide which bank is better for her. Grace should _____.

- select the bank that is closer to her house - write her short term goals - call the banks - use the PACED decision-making process to help her decide answer: - use the PACED decision-making process to help her decide

1 Sec.1: Nick has a goal to pay his credit card balance in full by June 30. When he first wrote the goal in December, his balance was $2,500. It is now April, and he can pay all except $200. Evaluate his progress and describe the results in one to two sentences.

Writer: Probably didn't have the time to make up for the money and couldn't pay it in full. There may be other days where he was sick and couldn't go to work, which he will not make any money that day.

1 Sec. 2: Michael must pay his way through college. He is a sophomore in high school and currently babysits regularly on the weekends. He works 15 hours and makes $8.00 an hour. He will be eligible to work at his uncle's restaurant in three months, and he can work twenty hours a week at $8.50 an hour. Use the PACED decision-process to decide what Michael's best choice is. Show each step.

Writer: 1. Define the Problem- figure out if he wants to babysit or work at his uncle's restaurant and getting paid more than then babysit. 2. List the Alternatives- 1. babysit for awhile, 2. quit babysitting and work at his uncle's restaurant. 3. Select the Criteria- time and money for college 4. Evaluate the Alternatives- look for information on how to get money fast 5. Make a Decision- work for both babysit and in restaurant to get the money for college.

1 Sec. 2: Decisions often have negative effects on reaching goals. (Remember the example of Nathan? He purchased a video game he wanted, but had to delay getting his snowboard.) You can probably think of many examples of how decisions can affect your goals. Think about one of your goals. In the text box below, write about how a decision could affect reaching this goal.

Writer: Decision could affect reaching your goals because it's very disappointing when you don't meet your goals and the way you act towards your decisions will effect your goals in life.

long-term goal

a desired result which may be attained in more than one year

1 Sec. 2: A(n)______ standards for evaluating something.

answer: criteria

liabilities

money owed