Financial GoalStrategies
Unit 2 Project
Learning Goals:
Reframe life goals in terms of SMART financial goals.
Demonstrate how financial tools, including financial statements and spending plans, are used to assess one’s financial goal status and needs.
Section I: Life Goals to Financial Goals…for YOU
Begin with ONE of your life goals (from any life dimension you would like). Break this life goal into activities (or sub-goals) that can help you manage and reach this life goal. Take TWO of these sub-goals and transform them into financial goals using the SMART goal process.
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Financial Goal 1: | Financial Goal 2: | |
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Section II: SMART Financial Goals and Using Financial Tools for Financial Goal Attainment
Rodger (32) and Amelia (34) have been married for 7 years and they have a son who just turned 3. Rodger is working full time as a technology coordinator (earning $40,000 per year) and would like to eventually become a director. Amelia is staff at the local university, where they receive free child care for their son, and has plans to become a development officer. They have discovered the need for a second vehicle. They would also like to have another child within the next 2 years. Amelia is a little worried about Rodger’s diet and exercise habits and wants to make sure they both set a good example for their children. They live in anapartment which costs them $1200 a month and would eventually like to own a home one day.
Part A: Select TWO of this family’s life goals. Break each life goal into activities (or sub-goals) that can help Rodger and Amelia manage and reach their life goals. For each life goal, take TWO of the sub-goals and transform them into financial goals using the SMART goal process.
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Financial Goal 1.1:
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Financial Goal 1.2:
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Life Goal 2: | ||
Financial Goal 2.1:
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Financial Goal 2.2:
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Part B: Use the data below for Rodger and Amelia:
Summarize their current cash flow situation |
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Identify four items based on the information provided that could help them reach their financial goals. | |
Explain what you would do if you were Rodger or Amelia? (minimum 50 words) |
Cash Inflows | Monthly | Annual |
Rodger’s Salary | $ 3,333 | $ 40,000 |
Amelia’s Salary | $ 4,583 | $ 55,000 |
Cash Outflows | Monthly | Annual |
Rent Payment | $ 1,200 | $ 14,400 |
Utilities | $ 350 | $ 4,200 |
Cell Phones, TV, Internet | $ 275 | $ 3,300 |
Groceries | $ 500 | $ 6,000 |
Food away from home | $ 300 | $ 3,600 |
Student loan payment | $ 400 | $ 4,800 |
Auto maintenance | $ 75 | $ 900 |
Health insurance | $ 300 | $ 3,600 |
Auto insurance | $ 250 | $ 3,000 |
Tax withholding | $ 1,500 | $ 18,000 |
Credit Card Payments | $ 800 | $ 9,600 |
Clothing & Personal Care | $ 350 | $ 4,200 |
Appliance, Furniture and Equipment | $ 100 | $ 1,200 |
Entertainment | $ 300 | $ 3,600 |
Children’s activities | $ 200 | $ 2,400 |
Charitable contributions | $ 150 | $ 1,800 |
Gifts | $ 150 | $ 1,800 |
Miscellaneous | $ 200 | $ 2,400 |