LESSON 22.2 What are short-term personal financial goals?
LEARNING INTENTION By the end of this lesson you should be able to: • identify sources of income and forms of expenditure for individuals • identify options for a budgeting and savings plan using short-term personal financial objectives.
Tune in All people require money to purchase the things they want (non-essentials) and the things they need (essentials). How could young people make and manage this money? 1. Make a list of the types of things that you would expect a secondary school student of your age to purchase eachweek. 2. Decide whether these things are needs or wants. 3. Where could a teenager’s money come from to buy the items? Regular pocket money, allowance, or other cash income? If so, what methods could they use to make it last until the next payment?
FIGURE1 Where does your money come from and where does it go?
We all enjoy having money to spend, and many aspire to be wealthy. However, few achieve this luxury. It is essential to consider how to earn and manage money effectively. Starting a business is one way to earn money, showcasing entrepreneurship by creating something unique. If you have skills or a business idea, this path can be rewarding. Whether you run your own business, work for someone else, or have a part-time job, careful planning and money management are crucial. 22.2.1 Setting short-term goals It is easier to buy what you want if you have clear financial goals in mind. When we think about short- termgoals , we think about things that we want to do within the next couple of months or even within the year. You probably already have some ideas about the types of things you want to buy now or soon into the future. The good thing about setting goals is that they can give you an immediate and achievable purpose and this may include you saving money to get what you want. Tips for goal setting: • Goals should be realistic, or you will become discouraged. • Goals should be specific. For example, ‘My goal is to save $200 in six months for new sneakers.’ • Avoid vague goals (such as ‘My goal is to get rich’) because their exact meaning is unclear.
628 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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