When is the last time someone asked your advice, and then completely ignored it? That is what some financial planners cringe at on a regular basis. Why go through all of the hassle of finding someone with great skill and knowledge in financial matters only to make huge investment (or lack thereof) decisions alone? People seem to like to ask questions, but ignore the answers. Why do people people tend to underestimate their need to protect themselves financially? Do you tend to make money decisions on your own, or do you ask questions? What credible person do you ask financial advice from? Do you tend to follow their advice or ignore it? Make a short list of three financially savvy people you would feel comfortable asking financial questions to; that you know has your best interest at heart.
Read through the attached article and make a list of financial decisions that adults need to make with their money. Mark the items with a star that you will need to consider within the next year. Categorize these decisions with titles such as insurance, investment, and spending, etc. Try and match the list of the people you trust to help you make financially smart decisions with the type of financial decisions you will consider this upcoming year. Share your decisions with a partner and come up with a suggestion for your partner to examine.
Extension: On a 3x5 card, make a “quick guide” for yourself when making decisions with your money. Use the article to lead you in your financial decision making chart.
SS.912.FL.6.1Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
SS.912.FL.6.2Analyze how judgment regarding risky events is subject to errors because people tend to overestimate the probability of infrequent events, often because they’ve heard of or seen a recent example.
SS.912.FL.6.3Describe why people choose different amounts of insurance coverage based on their willingness to accept risk, as well as their occupation, lifestyle, age, financial profile, and the price of insurance.
Created by Deborah Kozdras and Brittany Sampson