Being Financially Responsible

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Sponsored by Discover and Discovery Education

 

Unit Overview

Being Financially Responsible provides a foundation for students to explore a wide variety of personal finance topics. The unit begins with an introduction to personal goal setting and the importance of setting SMART goals. Students then examine their personal money habits including how they were established and the impact having good money habits can have on their future. Next students learn about budgeting and discover why it is important to track one’s income and expenses. The unit concludes with a look at students’ everyday spending decisions and the impact their daily choices can have on their financial future.

Section A - Imagining Your Financial Future

What does the future hold for you?

How will your goals change over time?

You will learn about goal setting and how one’s goals for the future (i.e., job, relationships, social) will likely vary at different life stages.  Complete the learning module below and keep any necessary notes.

 

Section B – Setting Smart Goals

Improving your financial life requires planning, and that starts with setting goals that are Specific, Measurable, Achievable, Realistic and Time-bound (SMART).

Smart Goal Guide

Specific

·        What exactly needs to be accomplished?

·        Who else will be involved?

·        Where will this take place?

·        Why do I want to accomplish the goal?

Measurable

·        How will I know I’ve succeeded?

·        How much change needs to occur?

·        How many accomplishments or actions will it take?

Attainable

·        Do I have, or can I get, the resources needed to achieve the goal?

·        Is the goal a reasonable stretch for me? (neither out of reach nor too easy)

·        Are the actions I plan to take likely to bring success?

Relevant

·        Is this a worthwhile goal for me right now?

·        Would it prevent me from achieving an important goal?

·        Am I willing to commit to achieving this goal?

Time-bound

·        What is the deadline for reaching the goal?

·        When do I need to act?

·        What can I do today?

 

Below are some examples of financial goals.  Look over them and be prepared to share your goals with a “financial buddy” and set specific dates to check-in on progress.

        Short-Term Goal:  I want to save $200 in an emergency fund every month for the next 12 months.  I will report my progress on the last Monday of the month to my financial buddy.

        Medium-Term Goal:  I want to save $10,000 over the next three years for a house down payment.  I will check in with my financial buddy every three months.

        Long-Term Goal:  I want to invest at least $5,000 per year in my retirement funds for the next five years.  I will check in with my financial buddy every six months.