Decision Making

What Factors Influence Decision Making?

• Short-term Goals (few days or weeks)
• buy birthday gift for mom
• get haircut (Saturday)
• see counselor for Chemistry class
• Intermediate Goals (next month/year)
• get a "C" or better in Chemistry
• prepare for SAT (test in November)
• finish PF project (due in November)
• Long-term Goals (5-10 years or longer)
• graduate from college
• buy a car
• get a full-time job

My Personal Financial SMART Goals

(a desired end toward which efforts are directed)

SMART Goals

Thank you!

SMART Goals vs DAPPS

Decision Making

Personal Finance

Dr. Bajaj

• Specific- Mike needs to replace all four tires in his car because the treads are worn out

• Measurable- Mike needs to have 12 more credits to graduate

• Attainable- Mike has money saved and is working so he can pay for the new tires

• Relevant/ Realistic- Mike wants to replace his current, worn-out tires to have a reliable means of transportation (Wants and Needs)

• Time-bound- Mike needs to graduate in two years

• Why should you write your goals down??

Why Writing Down Goals Increases the Odd of Achieving Them- Article

• My Personal Financial SMART Goals- Schoology *Done

• SM 1-2 Assignment SMART Goals- Missing Component

• Vocabulary Definitions- Schoology

Create a story of your own creation

• Activity 1-6 SmartGoalMakeover- Schoology

Decision Making

LEQ: What are SMART goals and how do I fit mine in my financial plan?

• Economic Wants and Needs (Read Pages 450-452)
• Basic Needs
• Life-enhancing Wants
• Values
• Personal Preferences
• Collective Values
• Innovations
• Public Goods

Vocabulary: Create a Story

• Review the meaning of the vocabulary words

• Use them in a story- work together

• 1st group- Create a sentence using a word from the list

• 2nd group- Add to the story with another word

• And do on...

• Words cannot be repeated

Challenge

• Self-image

• Other commitments

• Peer pressures

• Parental expectations

• Society's expectations

• Create three personal financial goals that follow the SMART strategy

• One goal should be short--term (up to 3 months)

• One goal should be intermediate (3 months to a few years)

• The last goal should be long-term (5 to 10 years)

Decision-Making Process

UEQ: What is the decision-making process and why is it necessary?

• 6 Steps in the Decision Making Process
• SMART Goals

LEQ: What are the six steps in the decision making process and what factors influence them?

The Decision-Making Process

Q. Which College Should I attend? (In Class)

Complete the Decision-Making Worksheet in Schoology- Your Problem

• Why decision making strategy is important?
• helps improve the quality of choices
• ??

• Made a decision that you regretted?

• In order to improve consequences, ??

• Put the 6 steps in decision making in order

1. Define the Problem

2. Obtain Accurate Information

3. Compare Choices

4. Make a Decision

5. Take Action

6. Reevaluate

Chapter 20 -

Personal Decision Making

Writing Down Goals

• helps you clarify your goals
• writing leaves no wriggle room
• they are a reminder
• easier to review and see progress
• cross it off the list

• Case - Suze Orman (Page 438)
• degree in Social Work->Financial advice
• THINK CRITICALLY (#1-3)

• Consider THIS - (Page 446)
• What advice would you give Basheer?

• Read Pages 447-449
• Tradeoff
• Sunk Cost
• Opportunity Cost