| A | B |
|---|
| Financial Goals | Specific objectives that are accomplished through financial planning |
| financial planning | managing money continuously through life in order to reach your financial goals |
| financial well-being | managing money in ways that build a sense of understanding, competence, and control |
| well-being | feeling good about one's life |
| needs | goods or services that are required for survival |
| opportunity cost | the value of the next best alternative that must be forgone as a result of a decision |
| trade-off | giving up one thing for another |
| value | a fundamental belief or practice about what is desirable, worthwhile, and important to an individual |
| want | the desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival |
| goal | something a person intends to acquire, achieve, or accomplish in the future |
| long-term goals | a goal that will be attained in more than one year |
| short-term goals | a goal that will be attained in less than one year |
| SMART | method used to help establish, commit, and obtain your financial or personal goals |
| Specific | state exactly what is to be done with the money involved |
| Measurable | Write the exact dollar amount |
| Attainable | Create a step-bystep plan outlining exactly how the goal can be reached |
| Realistic | Think through the trade-offs and opportunity costs to analyze the consequences of your goal to make sure it isn't unrealistic |
| Time Bound | Specifically state when the goal will be reached. |
