HSFPP-Module-1-Money-Management-Student-Guide-2014.pdf

M easurable how will i know ive succeeded how much

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M easurable » How will I know I’ve succeeded? » How much change needs to occur? » How many accomplishments or actions will it take? A ttainable » 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? R elevant » Is this a worthwhile goal for me right now? » Is it meaningful to me—or just something others think I should do? » Would it delay or prevent me from achieving a more important goal? » Am I willing to commit to achieving this goal? T ime-bound » What is the deadline for reaching the goal? » When do I need to take action? » What can I do today? The SMART acronym is basically a checklist for creating turbocharged goals that will help guide you to success.
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16 M O N E Y M A N A G E M E N T : C o n t r o l Yo u r C a s h F l o w After going through the questions, Selena decides on the following goal: To have $1,000 by August 1 of the summer after high school graduation so I don’t have to worry about money emergencies when I’m on my own. Starting today, I’ll put $25 into my savings account every month until then. Michael does some research on what tires cost and sets his goal at saving $500 in the next month. But then he realizes that it’s not a realistic goal, given what he’s earning right now. So, he tries again and decides on the following goal: To transfer $40 from each weekly paycheck into my savings account over the next three months to have at least $500 set aside to buy new tires for my car. Satisfied, they start listing other goals they want to set. Help them make the goals SMART in the activity that follows: Activity 1.6: SMART Goal Makeover Creating SMART goals will help set you up for success. Can you tell what SMART criteria are missing from the goals below? Rewrite Michael’s and Selena’s statements into SMART goals. Compare your changes with a classmate or the online examples (). Goal SMART Goal Selena Save $200 for a trip to the outlet mall Buy a new MP3 player Michael Save money for college next year Buy a new computer in January
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17 To l e a r n m o r e , v i s i t w w w . h s f p p . o r g ARE WE THERE YET? Deciding that you want something and buying it right away is called instant gratification. You saw how well that worked for Michael, though, when he bought the new jacket. You might even know from your own experience how buying on impulse can get you into trouble. We usually classify goals into one of three categories, which you can see in the following graphic: Short-, medium-, and long-term goals are all delayed gratification. The only difference is how long you delay. The further away your goal is, the more commitment and patience it will take to reach it. Breaking up longer-term goals into shorter ones (like Selena’s monthly savings goal) can help keep you on track and motivated along the way.
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