Financial Decisions and Planning

Transcription

1 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 57 4 CHAPTER Financial Decisions and Planning Answers to the Student Edition 4-1 ACTIVITY 1 Can You Recall? Answer these questions to help you recall what you have read. If you cannot answer a question, read the related section again. 1. How are other needs different from basic needs? Besides food, clothing, shelter, and medical care, what are some other needs? Other needs refer to those needs that make life more comfortable. They are beyond basic needs (food, clothing, shelter, and medical care) and include items such as books, appliances, and extra clothing. 2. How are wants different from needs? What are some wants that you have? Wants are things people desire for reasons beyond survival and basic comfort. Students are to list some of their wants. 3. How do financial resources limit a person s spending choices? When resources are limited, all or most resources may be needed to fill needs. Discretionary income may be low. Consumers may not be able to afford to choose more expensive items or a larger number of items. 4. What are assets? What are liabilities? An asset is money or an item of value that you own. A liability is any debt that you must repay. 5. How is a person s net worth calculated? Net worth is calculated by subtracting liabilities from assets. 6. What is a trade-off? What is an opportunity cost? A trade-off is choosing to buy one item or service instead of another. An opportunity cost is a good or service given up in order to make another choice. 7. Briefly list five steps to follow when making a financial decision. Define the need or problem to be resolved by buying the item. List options for filling the need or solving the problem. Compare the options you have identified. Make a decision. Take action based on your decision. Reevaluate your choices after some time has passed. 8. You have given careful thought to buying either a new book bag or a music CD. You decide to buy the music CD. What is your opportunity cost? The opportunity cost in this situation is the book bag. 57

2 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page List some strategies you can use to make good financial choices. Making good financial choices involves thinking about how each decision will affect the future. Get good information, and make decisions carefully. Spend less than your income, if possible. Ask lots of questions regarding products and services before making a choice. Learn from the mistakes of others. Students may list other strategies from the chapter or of their own. 4-1 ACTIVITY 2 Personal Financial Statements Identifying the income, expenses, assets, and liabilities you have now is a good place to begin planning for your financial future. In this activity, you will create a personal income and expense statement and find your net worth or net loss for one month. You will also create a personal balance sheet and determine your net worth. 1. Review the personal income and expense statement shown in Figure on page 94. Create a similar document using your information. Use spreadsheet software, if available, to create the statement. 2. List all your income money you receive from any source during one month. 3. List all your expenses money you pay for goods and services during the same month. 4. Find the total of your income and the total of your expenses. Subtract the two total amounts to find your net income or net loss. 5. Review the personal balance sheet shown in Figure on page 94. Create a similar document using your information. Use spreadsheet software, if available, to create the balance sheet. 6. List all your assets money you have or things of value you own. 7. List all your liabilities money you owe that must be repaid. 8. Subtract your liabilities from your assets to find your net worth. Note that if your liabilities are larger than your assets, you will have a negative net worth. 4-2 ACTIVITY 1 Can You Recall? Answer these questions to help you recall what you have read. If you cannot answer a question, read the related section again. 1. What is the purpose of a budget? The purpose of a budget is to plan how you will spend or save money. 2. What three types of amounts are included in a pay-yourself-first budget? The three parts of a pay-yourself-first budget are income, savings, and expenses (variable and fixed). 58 Chapter 4 Financial Decisions and Planning

3 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page How are variable expenses different from fixed expenses? Variable expenses can go up and down each month; fixed expenses are the same every month. 4. Why is it important that a budget be balanced? If your budget does not balance, what can you do to bring it into balance? It is important that a budget be balanced so you can be assured that you have enough income to pay your expenses. You can also plan how to save or spend money that is not needed to pay expenses. If the budget does not balance, you can find new or increased sources of income, decrease or increase savings, or decrease or increase expenses. 5. What is an unfavorable variance? An unfavorable budget variance means that you did not achieve your goal. In other words, income or savings were less than expected, or expenses were more than estimated. 6. Describe ways to keep financial records manually. You can keep logs or journals on paper that list types and amounts of income, savings, and expenses. You can manually compute your variances and make notations about what to change. 7. Name three software programs that can be used to keep financial records. Three software programs that can be used to keep financial records are Quicken, Microsoft Money, and Microsoft Excel. Students may name other programs. 8. List steps you can take to help resolve a conflict in a positive manner. Wording will vary. To help resolve a conflict in a positive manner, you can: Repeat a short summary of the problem or complaint. Suggest that you continue your talk at a later time if the person is upset or angry and not speaking rationally. Focus on the problem, not on the person. Look for positive ways to address the issue. Be willing to compromise, when appropriate, to reach a solution that will be acceptable to all parties. 4-2 ACTIVITY 2 Personal Budget In this activity, you will create a personal budget. You will keep track of your finances for one month and then compute budget variances. In 4-1 Activity 2, you created a personal income and expense statement. Refer to that document to see income and expense items you have already identified. 1. Review the personal budget shown in Figure on page Create a similar budget for yourself for the coming month. Use spreadsheet software to prepare the document, if it is available. Enter your expected income from all sources during the month. Enter an amount you want to save for the month. List all your estimated expenses for the month. Total the sections of the budget to see if the budget is in balance. If it is not, change the savings or expense amounts to make the budget balance. 3. Keep track of the amount of money you receive, the amount you save, and the amount you spend during the coming month. Continue this exercise after one month has passed. Answers to the Student Edition 59

4 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page Review the personal budget variance examples shown in Figure on page Create a similar monthly budget variance report for yourself. Use the budget you created for the month and the actual amounts of your income, savings, and expenses. 4-3 ACTIVITY 1 Can You Recall? Answer these questions to help you recall what you have read. If you cannot answer a question, read the related section again. 1. What is the purpose of a financial plan? The purpose of a financial plan is to plan for earning, spending, saving, and investing that will allow you to achieve your personal goals in the present and the future. 2. List the five steps in creating a financial plan. The five steps in creating a financial plan are to gather information, analyze the information, set goals (personal and financial), set steps with a timeline, and implement and evaluate the plan. 3. What types of information or documents are needed to create a financial plan? You will need all types of information and documents, from tax returns and checkbooks to a current paycheck stub and personal balance sheet. Everything should be gathered so it can be analyzed to see where you are financially and what you need to plan for. Students may list other documents as given in the textbook. 4. What information should you be able to learn from your personal balance sheet? From your personal balance sheet, you should be able to learn the amount of your assets, the amount of your liabilities, and your net worth. 5. Why are personal goals set before financial goals? How do financial goals help make achieving personal goals possible? Personal goals are set first because they define what is important to you. Your financial goals will help you achieve your personal goals by providing the money needed. 6. How are short-term goals different from long-term goals? Short-term goals are set for between now and 2 years from now. These goals represent immediate needs and concerns. Long-term goals are typically more than 5 years away from completion but still involve a commitment today. 7. What does the term delayed gratification mean? The term delayed gratification means doing without an item you would like to buy now in order to save money for a long-term goal. 8. How often should you review your financial plan at a minimum? At a minimum, you should review your financial plan once each year. 9. Why might you choose a financial planner who does not work on commission rather than one who does? You might choose a financial planner who does not work on commission rather than one who does to help ensure that he or she has your best interests in mind when recommending investments or other financial products. 60 Chapter 4 Financial Decisions and Planning

5 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page ACTIVITY 2 Personal Financial Plan 1. Review the example of one goal in a financial plan shown in Figure on page Gather the personal income and expense statement, the personal balance sheet, and the personal budget you created earlier. Gather any other financial documents you have. See the list under Step 1 Gather Information on page 109 for examples. 3. Use spreadsheet or word processing software for this activity, if it is available. If not, complete the work using paper and pen. Center the following heading at the top of the document: (YOUR NAME) FINANCIAL PLAN Updated (current date) 4. Refer to your personal balance sheet created earlier to find your net worth amount. Enter this amount below the headings. For example: Net Worth on (current date) $ Below the net worth information, create a table with four columns as shown in Figure Enter the following column headings: Personal Goals Financial Goals Steps to Take Timeline 6. Think of a personal goal you would like to accomplish within the coming year. List this short-term goal in the table under Personal Goals. 7. Think of the financial goal or goals you will need to meet in order to achieve the personal goal. List these goals in the table under Financial Goals. 8. Determine the steps you will need to take to achieve the financial goals. Refer to your budget and income and expense statement. Do you need to increase your income or savings to meet the goals? Do you need to decrease expenses? List the steps you will take to meet the goals in the table under Steps to Take. 9. Set a time for completing each step you listed. Enter the completion time for each step in the table under Timeline. 10. Repeat steps 6 through 9 to list other goals. List at least one more short-term goal to be achieved in 2 years or sooner. List at least two intermediate goals to be completed within 3 to 5 years. List at least two long-term goals to be completed in more than 5 years. You may list as many other goals as you wish. For the long-term goals, the steps to take may be more general than for the short-term or intermediate goals. Having long-term goals that you do not yet know exactly how to accomplish is fine. 11. Work toward achieving your goals by taking the steps you have listed. Refer to your timeline often to see if you are accomplishing the steps or goals when planned. Answers to the Student Edition 61

6 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page At least once a year, review and revise your financial plan. Check off goals that you have achieved. Add new goals as your needs and wants change over time. Refine the steps to take in achieving your long-term goals as the steps needed become clearer. Exploring Careers in Science, Technology, Engineering, and Mathematics The purpose of this Exploring Careers page is to help students learn how their interests and talents could be used in careers related to science, technology, engineering, and mathematics. Skills needed in the career area and sample job titles are given. Students select one job in the career area to explore further using information found online in the Occupational Outlook Handbook. Solutions will vary. For the job selected, students should give the following information: The nature of the work the job involves The outlook for the job The training or qualifications needed for the job The median annual earnings for the job CHAPTER 4 End-of-Chapter Activities Activity 1 Review Key Terms Use the key terms from Chapter 4 to complete the following sentences: 1. Your next best choice, called the opportunity cost, is what you give up when you make a decision to buy an item. 2. The amount of your assets minus your liabilities is called your net worth. 3. Discretionary income is the amount of money a person has to spend after needs are met. 4. A spending and saving plan based on expected income and expenses is called a(n) budget. 5. Rent or insurance payments are examples of fixed expenses because they do not change each month. 6. An overall plan called a(n) financial plan contains your personal and financial goals. 7. Personal goals are things you want to achieve. 8. A(n) financial planner is a person who gives financial advice to individuals. 9. When you choose to give up one item to buy another, you are making a(n) trade-off. 10. Items of value that you own, called assets, may be appreciating or depreciating. 11. Variable expenses are expenses that can go up and down each month. 12. Differences between planned and actual income or expenses are called variances. 13. Financial goals describe how you will pay for achieving your personal goals. 14. Identity theft occurs when a person s personal information is used without permission to commit fraud or theft. 15. A debt you owe, called a(n) liability, must be repaid. 62 Chapter 4 Financial Decisions and Planning

7 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page Phishing is a scam that uses an message to get a person to give out personal information. 17. Things we desire to buy, called wants, go beyond filling survival needs and basic comforts. 18. Financial resources are money and other items of value that can be used to acquire goods and services. Activity 2 Math Minute Complete these problems to build your math skills. You may use spreadsheet software or complete the problems manually. 1. Michael makes $127 a week and gets paid four times a month. What is his monthly pay? His yearly pay? $508 per month, $6,096 per year 2. Rachelle makes $96 a week and gets paid 52 weeks a year. What is her yearly pay? Her monthly pay? $4,992 per year, $416 per month 3. Maria s planned income for July was $539. The actual amount she earned was $522. Compute the variance amount and percent. Note if the variance is favorable (F) or unfavorable (U). Round to the nearest whole percent. $17 variance, 3% variance (U) 4. Chin s planned entertainment expense was $125. The actual amount he spent was $106. Compute the variance amount and percent. Note if the variance is favorable (F) or unfavorable (U). Round to the nearest whole percent. $19 variance, 15% variance (F) Activity 3 Make a Financial Decision You belong to a school club that has ten members and two teacher advisors. The club members and advisors are planning to attend a conference in your state capital. Apply the decision-making process you learned in this chapter to help you decide how your club should travel to the conference. Work with a classmate to complete this activity. 1. Define the need clearly. Write a statement that says exactly what you need to decide. 2. List options for filling the need. What methods of transportation might your club use to reach the state capital? (If you live in the state capital, assume you will need to travel 20 miles to the meeting site.) Do research as needed to find the cost of each option. Remember to consider the distance both to and from the state capital. Record detailed notes to show how the cost for each item was calculated. 3. Compare the options you have identified. List the advantages and disadvantages of each one. 4. Make a decision based on your research and evaluation of the information you have gathered. Explain why you choose one option over the others. 5. Describe how you would take action based on your decision if this were a real situation. Answers to the Student Edition 63

8 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 64 Activity 4 Create a Household Budget In this chapter, you created a realistic budget that applies to your needs now. In this activity, you will pretend that you have graduated from high school and are living on your own. You will create a household budget that would provide for your needs in that situation. 1. Review the personal budget shown in Figure on page 102. You will prepare a household budget for next month. Use spreadsheet software to prepare the budget, if it is available. 2. Use the budget in Figure as an example of how to set up and format the document. 3. Assume you work 40 hours per week 4 weeks per month. You earn $8.00 per hour. Your take-home pay (after taxes and other deductions) is $224 per week. Calculate your monthly take-home pay. Enter this amount in the Income section of the budget. Enter $60 per month that you earn doing odd jobs such as mowing grass or babysitting for a friend. Calculate the total income. 4. Enter an amount you want to save for the month. Use an amount that you think is realistic. You may need to adjust this amount later. 5. In the Expenses section, list your estimated expenses for one month. Think of all the expenses you would have if you were living on your own. Assume that health insurance premiums have been deducted from your paycheck. Also assume that the taxes you have withheld from your paycheck are all the taxes you have to pay. You do not need to list these items as expenses. A list of typical expenses for a household budget follows. You may add other items that you think would be realistic. You may leave out items that you think you would not want to have, such as satellite TV. Rent Car payment Telephone Cell phone Electricity Water Groceries Clothing and shoes Internet access Gasoline Lunches at work Satellite TV Other entertainment Car license and maintenance Auto and renter s insurance Miscellaneous 6. Do research to find typical monthly costs for these items in your area. For example, look at advertisements for apartments in a newspaper to find rent costs. Ask your parents or other adults how much they usually pay for items such as electricity and water. Calculate the total expenses. 64 Chapter 4 Financial Decisions and Planning

9 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page Calculate the total savings and expenses. Is the budget in balance? If it is not, change the savings or expense amounts (within realistic limits) to make the budget balance. Some ideas to help balance your budget follow. Can you find an apartment where the water or electricity is included in the rent? Perhaps you cannot afford a car. If you take the bus to work and other places instead, you will not have a car payment, gasoline costs, or car insurance costs. Instead, add the cost of bus fares and an occasional taxi fare. Perhaps you cannot afford both a cell phone and a house phone. Can you do without one of them to save money? Consider getting a two-bedroom apartment and sharing it with a friend. Your friend would pay half of the rent, electricity, and water expenses. Making the budget balance will be a challenge with the income amount given. Remind students that with only a high school education, the income they can expect to earn will be limited. Point out that the hourly wage rate given in the problem is above the national minimum wage. Encourage students to use realistic expense and savings amounts and to work with the budget until it balances. Activity 5 Research Identity Theft 1. Access the Internet. Using a search engine, search using the term identity theft. 2. Read several articles you find about identity theft. 3. Make a list of steps consumers can take to avoid being the victim of identity theft. 4. Make a list of steps consumers should take if they learn they are the victim of identity theft. 5. For each site you used to find information, list the article or Web page name, the Web site, the Web address, and the date you accessed the site. For example: Welcome to the Federal Trade Commission, Your National Resource about Identity Theft, Federal Trade Commission Web site (accessed May 12, 20--). Activity 6 Evaluate a Financial Plan Take a look at the financial plan on the next page, and answer these questions: 1. Do you think the personal goals are realistic for a student who is currently a sophomore in high school? This student s plans are not totally unrealistic, but it will take hard work to accomplish them. It will also take a steady and secure job to attain the income objectives. Students might find these three goals to be very ambitious for a student but could suggest other less expensive alternatives. 2. Label each personal goal as short-term, intermediate, or long-term. Goal 1 is a long-term goal. Goals 2 and 3 are intermediate goals. 3. If this student gets a job, how much will she have to earn in take-home pay in order to meet her financial goals? The student will need to earn at least $110 per month in take-home pay for 20 months and $85 per month for an additional 10 months to cover the savings needed to achieve her financial goals. Answers to the Student Edition 65

10 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page How can you add to or refine this plan to make it better? The plan might be more realistic if the student indicated that her parents would pay for most of the Hawaii trip as a graduation gift and that she would only need to earn some money for clothes and spending money on the trip. Depending on the financial situation of the student s family, getting financial aid or scholarships may or may not be realistic. The student could identify specific scholarships for which she will apply. 66 Chapter 4 Financial Decisions and Planning

11 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 67 NAME Answers to Workbook 4 CHAPTER Financial Decisions and Planning EXERCISE 4-1 Review of Chapter Terms Directions: Write the letter of the correct definition beside its corresponding term. F M H K I O B G P D L A R E Q C J N 1. assets 2. budget 3. discretionary income 4. financial goals 5. financial plan 6. financial planner 7. financial resources 8. fixed expenses 9. identity theft 10. liability 11. net worth 12. opportunity cost 13. personal goals 14. phishing 15. trade-off 16. variable expenses 17. variances 18. wants A. Your next best choice; what you give up when you make a decision to buy an item B. Money or other items of value that can be used to acquire goods and services C. Expenses that can go up and down each month D. Any debt you owe that must be repaid E. An scam designed to get individuals to give out personal data F. Items of value that you own G. Expenses that do not go up or down each month H. The amount of money a person has to spend after needs are met I. An overall plan that contains personal goals and financial goals J. Differences between planned and actual income or expenses K. Goals that describe how you will pay for your personal goals L. The amount of your assets minus your liabilities M. A list of estimated income and expenses for a month N. Things we desire that are beyond basic needs and comforts O. A person who provides financial advice to individuals P. The act of using someone s personal information without his or her permission to commit fraud or theft Q. The process of giving up one item to get another item R. Goals that state things you want to achieve Answers to Workbook 67

12 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 68 NAME EXERCISE 4-2 Building Communications Skills: Reading Vocabulary Directions: Improve your vocabulary by learning the meanings of the following terms related to personal finance. For each term, consult a dictionary or another source to find the meaning. Some terms can be found in the glossary of your textbook. Write the meaning for each term. Then write a sentence that uses the term and shows its meaning. Wording of definitions will vary, but the meaning should be the same. Sentences will vary. 1. capital gain: an increase in the value of assets such as stock or real estate above the amount paid for the asset He realized a capital gain of $10,000 on the sale of his house. 2. compound interest: interest computed on the original principal and the accumulated interest The compound interest on the loan was $ estate: the assets and liabilities of a deceased person She inherited $40,000 from her aunt s estate. 4. itinerary: a detailed schedule of events, times, and places for a trip His itinerary listed a visit to Mount Rushmore on Tuesday. 5. monopoly: exclusive possession or control of something, such as being the only seller in a particular market Because he was the only provider for this product, he held a monopoly. 68 Chapter 4 Financial Decisions and Planning

13 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page overdraft: a check written for more money than is in the account The overdraft amount of $50 was charged to the customer, along with a penalty fee. 7. power of attorney: a legal document that authorizes one person to act on behalf of another He was able to arrange the sale of his father s house because he held a power of attorney for his father. 8. rebate: an amount given back that is part of the purchase price of an item She received a rebate of $35 on the printer she had purchased for $ tenant: a person who pays rent to occupy land or property The tenant pays the landlord $500 rent each month. 10. usury: lending money at an interest rate that is excessively high or unlawful Usury laws set maximum interest rates that can be charged for loans. Answers to Workbook 69

14 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 70 NAME EXERCISE 4-3 Building Math Skills: Computing Variances Directions: For the amounts below, compute the variances in dollar amounts and in percentages. Round to the nearest whole percent. Indicate whether the variance is favorable (F) or unfavorable (U). Budgeted Actual Dollar Percent Amount Amount Variance Variance F or U Income Amounts 1. $ $ $ % U 2. $25.00 $17.50 $ % U 3. $ $ $ % U 4. $ $ $ % F 5. $ $ $ % F 6. $50.00 $75.00 $ % F Expense Amounts 7. $ $ $ % F 8. $ $ $6.00 6% F 9. $52.00 $66.00 $ % U 10. $35.00 $25.00 $ % F 11. $ $ $ % F 12. $ $ $ % F 70 Chapter 4 Financial Decisions and Planning

15 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 71 NAME EXERCISE 4-4 Careers in Accounting Accounting is the recording and reporting of financial data. People with degrees in accounting are called accountants. They prepare financial statements and record business transactions. For example, they prepare income statements and balance sheets for companies. They record the purchase and sale of goods. They also compute costs and prepare strategies. For example, a plan may be needed to decrease costs or increase profits. People who like to work with numbers often make good accountants. An accountant s work must be very accurate and detailed. It must also be done at the scheduled time. Accountants are valuable members of company management teams. Many company presidents began by studying accounting. 1. Learn more about careers in accounting. Access the Occupational Outlook Handbook online. A link to the site is provided on the Web site for this textbook. Career research will show accounting as an attractive profession in terms of income potential. However, not everybody is suited to the work. Talk to students about being analytical, systematic, and orderly. An accountant must be very patient and precise. Accountants are valuable members of management teams and are key players in making strategic decisions. Also impress upon students that a bachelor s degree is a minimum requirement. Testing and certifications may not be required but may increase chances of advancement. 2. Search the site using the word accountant. Choose a link from the search results that will take you to job information for accountants and auditors. 3. What are the four major fields of accounting discussed on this Web page? The four major fields of accounting discussed on this Web page are public accounting, management accounting, government accounting and auditing, and internal auditing. 4. What are some other names for management accountants? Some other names for management accountants are cost, managerial, industrial, corporate, and private accountants. 5. What type of degree do most accountant positions require? Most accountant positions require at least a bachelor s degree in accounting or a related field. 6. What are the median annual wage and salary earnings for accountants given in the Earnings section of this Web page? Median annual wage and salary earnings of accountants and auditors were $50,770 in May Answers will vary for later years. 7. Does a career in accounting appeal to you? Why or why not? Students are to state whether a career in accounting appeals to them and explain why or why not. Answers to Workbook 71

16 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 72 NAME EXERCISE 4-5 Revise a Budget Below is Alex s budget for January. He just learned that his work hours have been cut back. He will earn $100 less in January than he planned. 1. Recreate the budget for Alex Perez. Use spreadsheet software, if available. If spreadsheet software is not available, write the budget on paper. Instruct students to use spreadsheet software, if available. Using the software will make seeing the resulting totals easy when savings or expense amounts are changed. 2. Based on what you have learned about fixed and variable expenses, revise the budget so it balances at the new estimated income level. Explain why you choose to change the items you do to make the budget balance. Students could reduce savings (though that alone would not be enough to make the budget balance) and one or more of the variable expenses. ALEX PEREZ BUDGET FOR JANUARY 20-- Income Weekly Monthly Allowance $25.00 $ Part-time job earnings Total Income $ $ Savings $12.50 $50.00 Expenses Loan payment $50.00 $ Entertainment Food for lunches Miscellaneous Total Expenses $ $ Total Expenses and Savings $ $ Chapter 4 Financial Decisions and Planning

17 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 73 NAME EXERCISE 4-6 Conflict Management Directions: Some conflicts cannot be fully resolved, but they can be managed. Read through the following situations, and list ways you would manage the conflict. In other words, how would you deal with the situation in order to reduce your stress, get the work done that needs to be accomplished, and make the situation as pleasant as possible for as many people as possible? Scenario 1 You are in a meeting. One of the participants is not paying attention. In fact, she is in the back and is talking to the people around her. She is loud and disruptive. You have asked her to be quiet, but she seems determined to sidetrack the meeting. Other people are starting to lose interest because they can t hear what s going on in front. What will you do or say? Students might suggest asking that person for her opinion and drawing her into the conversation. Other tactics (that don t cause more disruption) would be to break into small group discussions and talk to her privately or to intervene in some other way that is subtle. Scenario 2 You are in a restaurant enjoying a holiday meal. A disorderly group is dining at the table next to yours. They have a child who is crying, and everyone is ignoring him. The group arrived just shortly after your party did, so it appears they will be at the restaurant the entire time you are there. What will you do or say? Students might suggest moving to another table. Ignoring the disruption might be difficult, but focusing on their own conversation could help. Also, politely asking the server or another employee to handle the situation might solve the problem. Confrontation should be discouraged. Scenario 3 You are working late and trying to finish a job. A person who works in your department keeps interrupting you. You are unable to focus on the job at hand. He is very upset about a new policy that is being put into effect at work. He wants you to be in a group to protest the action. You are not concerned about the policy, and you need to get your work done. What will you do or say? To get the job done, the worker will probably need to tell the person that she or he has to finish a job and schedule a time to talk later. Students might have other suggestions. Answers to Workbook 73

18 44665_04_ch4_p057_074.qxd 1/9/07 12:43 PM Page 74 NAME EXERCISE 4-7 Setting Financial Goals Directions: Personal financial planning begins with setting goals. The following table shows a personal goal that Triana wants to achieve. What financial goals do you think she will need to set to achieve this goal? What steps should she take? What timeline do you think will be needed? Complete the table with financial goals, steps to take, and a timeline. Responses will vary. PERSONAL GOALS FINANCIAL GOALS STEPS TO TAKE TIMELINE Be able to drive myself to work 74 Chapter 4 Financial Decisions and Planning