DECISIONS, DECISIONS

GOALSGoals are the most important thing to have in your life!!

LIST 5 GOALS YOU HAVE FOR YOU LIFEWe will go over these goals again at the end of the semester…are they goning be the same?

- Money- Family- Professionally

To accomplish your goals, you must distinguish between your Needs and your Wants

values Values are things that are important to

you! Family Religion Career Finances

Write down your top 5 values lets see how close we all are!

NEEDS & WANTSNeeds – things you cannot live without

• food, water, shelter, clothing

• Wants – things you would live to have but can live without

Opportunity cost This is what you are willing to give up in

order to get what you want or need. Ex; you are willing to give up part of your

paycheck for gas for your car, because you either want or need to drive.

Ex: You are willing to give up a watching a movie with your friends because you have to work. (because if you don’t work you don’t make money,

if you don’t make money, you don’t go out with your friends!)

The average teenager spends 4 hours a day on the internet, what could you be doing instead… what opportunity costs result from your use of the internet?

Example #1 I want to buy a new set of golf clubs. I have the

following options:

1. Should I buy new or used ones?2. Where do I buy them from?3. What kind of clubs do I need?4. Do they have to be brand name?

After considering all of my options, I have to make a decision. At a later date, I will evaluate my decision to make sure it was a right one.

Have you ever made a bad decision after weighing your options? Lets do the Decision, Decision worksheet together DealA,B,C

5 steps in a decision making process

1. SPECIFY - Identify the problem2. SEARCH - List the alternatives3. SIFT - Determine the pros and cons4. SELECT - Make the best decision5. STUDY - valuate your decision

SPECIFY Is this a need or a want? Goals?

Is this necessary, or do you have other plans for you money?

Values – is this an impulse buy?

Search Plan your search! Make sure you get the best deal, and do

not buy on Impulse Impulse buying leads to debt and credit card

trouble

SIFT Weigh your options! Opportunity cost :

You could buy a pair of real nice shoes for $100 or a pair for $50 and still have money to go out to eat or go to movie with friends.

Always factor your opportunity cost!!

SELECT Make your choice, confidently!

STUDY Examine your choice, did you make the

right decision? Learn from your purchases

Did all of your friends go out the next day and you didn’t have the money?

Or Were your new shoes the hit of the school?

DO THE QUESTIONS ON PAGE 15 #1-9