PF 1.

02-1A Decision Making Steps - Notes

Characteristics of financial goals

Financial _____goals_____ are accomplished through, and give direction to, financial
_____planning_______. Learning to ___set______ financial ____goals ________ is an
important part of learning to __live _________ ________independently ___________.
Financial goals should be SMART:
Specific_______________
Measurable _______________
Attainable___________________
Realistic ___________________
Time_-bound___________
Things to consider when making decisions
Alternatives - An ____option________________ or choice.
Pros - A reason in favor of an option; a potential ___benefit________________
Cons - A reason in opposition to an option; a potential limitation or
______weakness___________.
Impulse - A whim or sudden desire to do something; acting
_____without_____________ thinking
Habit - A learned _________behavior_________ that is __________repeated_______
over and over, usually without thinking
Mr. Walker bought the first box of candy he saw for his wife's birthday. This
illustrates a decision made: ____________on impulse___________________.

Mrs. Davis always goes to the cleaners around the corner from her job. This
illustrates a decision made: ___from habit _____________________.

PF 1.02-1A Decision Making Steps - Notes

Steps in decision-making
Following ____logical _______ ______steps_______ when making decisions helps
individuals make ___informed___________ ___choices____________. When decisions
are made from habit or on _______impulse____________, there is a greater likelihood
of _____negative_________________ outcomes.
The steps in decision-making are:
1.

_identify_____________ the ____decision_____________ to be made

2.

Identify _____resources__________ and gather

_____information_____________
3.

Identify the _____options____________ (alternatives)

4.

Identify the _____pros_______ and _____cons_______ of each option

5.

Choose the best option

6.

Put the decision into action

7.

Evaluate the outcomes of the decision

Lets Review

After she made up her mind to quit her job, Mrs. Smith wrote her letter of
resignation with no difficulty. Which step in decision-making is this? __put the deciosn
into action__________

After graduating from a State University, Monica thought about the decision she
had made to go to a state-supported university and realized she had made a smart
choice. Which step in decision-making is this?______Evaluate the outcomes of the
decision __________________________.
2

PF 1.02-1A Decision Making Steps - Notes

Matts car refused to start. He checked an online repair manual, looked at his
bank balance, and asked his dad, who is a mechanic, if he could teach him how to
make needed repairs. Which step in decision-making is this? ______identify rsources
and gather information.

At lunch, Khyas dad announced a family trip to visit his mother. At dinner,
Tanya invited Khya on a shopping trip and Jon invited Khya to join him for a picnic
lunch. Then Khya realized that all the invitations were for the same day and she would
have to make a choice. Which step in decision-making is this?__________indefity the
decisions to be made

RememberGood decisions lead to the achievement of goals and a feeling of selfcontrol and self-confidence. Good decisions are a key to successful independent living.