Lesson 2 - Financial Planning

• 3 Types of goals are Process goals, Performance goals and Outcome goals
• Process goals are specific action or “processes” of performing
• Process goals are 100% controllable by individual
• Performance goal are based on standard
• Performance goal are mostly controllable
• Outcome goals are based on winning
• Outcome goals are very difficult to control because of the other influences
• 5 Factors Influencing Decision Making are 1. Information concerning the concrete problem that needed to be solved. 2. Educational Level 3. Personality 4. Coping 5. Culture
• Information concerning the concrete problem that needed to be solved is the less information known by the decision maker, the more the enormous can be.
• Information concerning the concrete problem that needed to be solved is negative an positives of the available solutions should be considered in any decision
• Education Level is a good decision maker its well-versed and knowledgable
• Education Level a decision maker should know about the consequences hs decisions could have
• Values are personal qualities, relationships, material things that are very important to people
• Where do People get Their Values - Childhood experiences are strong person's value system
• Money values are the belief and principles that shape your relationship with money
• Health - money enables me to buy fresh, nutrious food
• Career - is my source of income
• Family - money provides stability
• Education - value growth and learning
• Mental Wellness - being financial secured
• Giving - money is tool for me to help causes