SESSION 4: SETTING SAVINGS GOALS

Transcription

1 SESSION 4: SETTING SAVINGS GOALS OBJECTIVES By the end of this lesson, participants will have: 1. Discussed our experiences with income and expenses; 2. Shared our own experience with goal-setting; 3. Examined a story about setting long and short-term savings goals; 4. Set a long and short-term savings goal; 5. Shared and evaluated potential savings goals; and 6. Committed to sharing our goals and to continue tracking income and spending. MATERIALS NEEDED Participant Notebooks/Pens Flipchart/Markers/Tape Colored Paper/Post-it Notes Bible PREPARATION NEEDED Create Flipcharts: Meeting Our Goals, Eva and Isaac s Savings Goals, Savings Goals, Evaluation Symbols Nametags: Isaac, Eva, Jessica, the elder, and Eva s mother Create poster board cut-outs: check mark, plus sign, triangle, question mark TIME 90 minutes Introduction: (5 minutes) Welcome back to our session today! Review our chart on the wall. In our last session, we discussed Overcoming Financial Challenges let s put a check next to that topic. To review, let s hear one or two quick things that stick with you from our last session together about financial challenges. Today, we ll begin discussing our next topic: Setting Savings Goals. 1. Connecting Money and Relationships 2. Exploring Values and Attitudes 3. Overcoming Financial Challenges 4. Setting Savings Goals 5. Creating a Spending Plan 6. Living Simply 7. Giving Joyfully 8. Managing Debt 1

2 9. Taking Loans 10. Getting Banked 11. Preparing for Emergencies 12. Planning for Long-Term Change We ll track our progress on this chart over the next weeks. Let s open in prayer as we begin our time of learning together. TASK 1: DISCUSS OUR EXPERIENCES WITH INCOME AND EXPENSES (5 MINUTES) 1A: Check in with a partner you ve had from our past weeks together. Take two minutes to discuss: How are you doing: Ø with the expense you committed to eliminate? Ø in tracking your income and expenses? We ll hear from several of you that would like to share. TASK 2: SHARE OUR OWN EXPERIENCE WITH GOAL SETTING (20 MINUTES) As we build confidence and trust in our group, we learn how to better pray for and support each other in times of need like the early church. What do you remember about them from our last lesson? I appreciated our discussion last time about how we can support each other in this same way. God did not design us to function on our own, but gave us one another. We are relational just like God is made in His image to reflect His character. When we put our trust in God, we are part of His family and can depend on each other. As we begin, let us consider the story of Joseph from Egypt. Joseph was a man who went through a lot of suffering, even being sold by his own family into slavery! But he had great faith and trust in God, even in captivity, and God did not forget him. During the time of Joseph, the Pharaoh, or King, had a dream. 2A: Lay back in your chairs as I lower the lights. Pretend you are dreaming! Close your eyes and imagine the dream as I tell it to you: Seven cows came up from the Nile River, fat and sleek. After them, seven other cows came up scrawny and very ugly. The lean, ugly cows ate up the seven fat cows! Then, seven heads of grain, healthy and good, were growing on a single stalk. After them, seven other heads of 2

3 grain sprouted thin and scorched by the wind. The thin heads of grain swallowed up the seven healthy, full heads! 2B: After hearing Pharaoh s dream, listen to how Joseph interprets it. God gave Joseph a special ability to see the meaning. As you listen, think about how this applies to saving and goal setting. Would a volunteer please read? And Joseph said: God has shown Pharaoh what he is about to do. Seven years of great abundance are coming to the land of Egypt, but seven years of famine will follow them. The famine will be so bad that you won t even remember the abundant times! So, collect all the food you can these good years that are coming. This food should be stored for the country, so that the country may not be ruined by the seven years of famine. The seven years of abundance in Egypt came to an end, and the seven years of famine began, just as Joseph had said. When all Egypt began to feel the famine, the people cried to Pharaoh for food. Then Pharaoh told all the Egyptians, Go to Joseph and do what he tells you. Joseph had stored up huge quantities of grain, like the sand of the sea. When the famine had spread over the whole country, Joseph opened the storehouses and sold grain to the Egyptians. All the world came to Egypt to buy grain from Joseph, even his own family, because the famine was severe everywhere. (Genesis 41:28-57, author s paraphrase) 2C: In the large group, discuss: How did Joseph use his abilities to plan ahead, save, or set goals? We ll hear a variety of voices. Joseph wisely planned ahead, predicting future needs and setting goals to meet them with a plan of action. Along with setting goals and planning ahead, Joseph used the assets God gave him his ability as an interpreter and his stores of grain to support his family and the community. Like our second theme posted on the wall, Joseph used his resources as part of God s work of restoration. Saving and planning was not just for his personal gain or security, but was part of something larger than himself. 2D: Find a new partner someone across the room! Consider a time in your own life when you set a goal for the future and fulfilled it. What were the key actions you took to meet your goal? For example, maybe you had to sacrifice time or opportunities. Discuss the key actions with your partner for three minutes. Then, we ll list some of your ideas on the flipchart entitled: Meeting our Goals [Suggested if not mentioned: planning ahead, giving up harmful relationships, delaying gratification, asking for help from others, doing research.] 3

4 Many people think they can t save, but actually, saving and borrowing both require the same thing: putting money away monthly. The question is: will you save, putting money away monthly before you make the purchase? Or, will you put money away monthly after the purchase, paying much more for the item because of interest? TASK 3: EXAMINE A STORY ABOUT SETTING LONG AND SHORT-TERM SAVINGS GOALS (15 MINUTES) Like all of us, Eva and Isaac need clear goals if they are going to succeed at saving. They know that saving is essential and that there are no shortcuts. They also know they must do it together. As you mentioned, meeting their goals are going to require sacrifice, discipline, and help. But like all of us, sometimes they struggle just to get by on a day-to-day basis and to make ends meet. Ø From our past sessions, what do you remember about Eva and Isaac their finances and relationships? 3A: Listen to Eva and Isaac s story as we continue. This time, let s act out the story! I need 5 volunteers to role play the story as I tell it: Isaac, Eva, Jessica, the elder, and Eva s mother. Show us your best acting skills! As you watch and listen, note Eva and Isaac s long and short-term savings goals. Eva and Isaac s Savings Goals Eva is exhausted. She s tired of the cycle that her family is in she knows that God has invited them to become part of His larger story in restoring all things. Eva is ready to take action she sits down to talk with Isaac about a long-term savings goal. They agree that the family needs a savings fund for emergencies. Together, they agree: their long-term goal is to build a $500 emergency fund. They look at their expense tracking sheets and decide they can save $25 per month toward this goal. But, it s hard to find that $25 a month when other expenses are so high! They really need a lump sum of money to buy that washer and dryer. After work one day, Eva went back to Green n Go Payday Loans to see Jessica, the lender. She was really friendly! But as always, it sounded too good to be true. Eva was polite, but she walked out. She refuses to get the money that way again she can t forget how long it took them to pay off the loan last year with the extra hidden costs. Instead of taking a loan, Isaac suggests they set a short-term goal of saving for a washer and dryer. With laundry expenses at almost $15 per week, a washer and dryer would save money and time in the long run which would allow them to work toward their long-term goal. After six months their investment in the machines will pay off. Plus, Eva would feel safer not 4

5 having to go out at night to the laundromat. If the machines were at home, her mother said she would also be delighted to help! Eva asked around at the church and found an elder she trusts who will sell her a good, used set for $60. These are more expensive than the $50 at Payless Pawn Shop, but Eva knows they are good quality and will make their investment worth it. To reach their long-term goals of having an emergency fund, Isaac and Eva know they must be faithful to their short-term goal of getting a good washer and dryer. They commit to saving $10 per month toward the washer and dryer. The elder agreed to accept the $10 per month from them until the washer and dryer are paid for. If they stick with it, they ll have the washer and dryer in six months. Now, Eva and Isaac have a savings plan. This gives Eva even more motivation to cut back on smoking. But she knows she can t do it alone. She tells Isaac and her mother about her plan to cut down on smoking and asks for their support. They all agree to think about ways to cut costs. Isaac agrees to eat-in for the rest of the month, plus he suggests some ideas about saving energy. That night around the table at dinner, the three of them prayed together about the matter. 3B: On the flipchart, let s write out Eva and Isaac s long-term goals, short-term goals, and plan for reaching these goals. As I write each category, you call out the savings goal, how long it will take, the total amount, and their plan to reach the goal. 5

6 Eva and Isaac s Savings Goals Long-term Goal Emergency fund for the family Total Cost Time $500 About 2 years (20-24 months) Monthly Cost Short-term Plan to Reach Goal $25 Commit to develop a savings fund; plan together to invest in washer/dryer Short-term Goal Total Cost Time Weekly Cost Used washer and dryer $60 6 months About $2.50 Plan to Reach Goal Found a good quality washer and dryer; cut back on smoking and eating out 3C: Now, in the large group, discuss: Ø What do you like about Eva and Isaac s savings plan? Ø What challenges might they face? Notice how their short-term goals connect to their long-term goals, enabling them to immediately take small steps like saving $2.50 per week that contribute to their longterm goal of protecting the family with an emergency fund. Also, note how working together through their finances is helping to restore relationships in the household. As we work through our own savings goals, think about how working together on finances can help to build and restore relationships with those you love. TASK 4: SET A LONG AND SHORT-TERM SAVINGS GOAL (25 MINUTES) 4A: Consider your own savings goals. First, set your long-term goals. Long-term goals are usually one to five years away these are the big picture goals. For long-term goals, ask yourself: Where do you want to be in five years? Call out some examples of possible longterm goals. Next, set short tem goals. These short-term goals are things you want to accomplish within the next six months to one year. Usually, short-term goals are steps toward reaching longterm ones. What are some examples of possible short-term goals? 6

7 4B: Let s work on our long-term goals first. Before we complete the Long-term Goals worksheet, note the recommendations in your notes entitled SMART Savings Goals: Your savings goals should be: SMART Savings Goals Specific to know what you re aiming for and why you re making sacrifices Made to honor God connect them to your top priorities and His work in the world Accountable ask someone to check on you or send reminders Realistic to increase the likelihood of achieving them Time-bound to track your progress and ensure the goal is accomplished 4C: As I name some examples of long-term goals that are too general, not accountable or realistic, or disconnected from your top priorities, call out how you would change them to become more specific, realistic, accountable, time-bound, and God-honoring. F0r each goal, we ll ask: What is wrong with this goal? How would you change it? 1. Save $200,000 over the next two years 2. Get more money for emergencies 3. Open my own secret savings fund to get rich 4. Own a brand new BMW by within six months 4D: Now, examine the Long-term Goals worksheet in your notes. Let s read through the example listed in your notes. Let s say that your long-term goal is to save $4,000 for your son s two year technical college tuition. He s in eighth grade now, so you ve g0t five years to save. How many months is five years? (60) How much will you have to save every month for 60 months to reach your goal? ($4,000 / 60 = $65) Let s do the math together. Now, in the example, what are the two short-term action steps listed to reach this long-term goal? 4E: Take five minutes to list your top two long-term goals on the Long-term Goals worksheet [page 66 in this guide]. I am available if you need help. 4F: Examine the long-term goals you have listed. Identify the one that really excites you or is most important. Make this your primary long-term goal. Commit yourself to accomplishing it! Think: How does this goal align with God s plan to heal my relationships? How does it relate to what I value most? 7

8 Long-term Goals 1 (1 to 5 years) Long-term Goal: I or we will Total cost Time frame (Years and Months) Monthly Cost Short-term Plan to Reach My Goal Example: We want our son who is in 8th grade to eventually enroll in the 2-year technical college. $4,000 including tuition, books, and fees 5 years/ 60 months $65 I will talk to my wife and open a special savings account. We will completely pay off an old medical debt of $300 so we can start saving. 1 Derived from Nederveld and Chung, Faith & Finances, Session VI, page 7. 8

9 4G: In the large group, share the long-term goal you have selected why your goal is important, the time frame, the cost, and how you will reach it. We ll hear from two or three of you. Excellent! Now, let s brainstorm how you will reach that goal by setting short-term goals. These short-term goals should help you toward your long-term goal. For example, as written in your notes, once you pay off your old medical debt of $300 as a short-term goal, you can use that money to start working toward your long-term goal of starting a savings fund for your son s college. Let s do the math together: If you want to complete this in six months, how many weeks is that? (24 weeks) How much will you have to save each week? ($300 / 24 = $12.50) 4H: On the Short-Term Goals chart in your notes [page 68 in this guide], list three shortterm goals that will help you reach your long-term goal. Calculate how much you will need to save each week and describe how you will do it. Let me know how I can help you. TASK 5: SHARE AND EVALUATE POTENTIAL SAVINGS GOALS (20 MINUTES) 5A: Examine your short-term goals and add them up to see how much you ve committed to save every week. Is this a realistic amount you ve set for yourself? You may have to begin by choosing from several good goals. Since there are about four weeks in a month, multiply this amount by four. How much should you commit to save per month? Which goals should you prioritize? Weekly savings of ( x 4 ) = Monthly Savings 5B: Look back at your short-term goals and consider: Ø What are the pros and cons of my goals? Are they realistic amounts? Ø Who will hold me accountable when obstacles get in the way? Ø How do my goals contribute to God s plan to restore my relationships? 5C: Adjust your goals if needed. Each person is welcome to share one short-term goal, including the cost and strategy, in the large group but only if you d like to. We ll evaluate the goals we ve heard and offer feedback to each other. 9

10 Short-term Goals 2 (within 6 months) Short-term Goal (I or we will ) Total Cost Time Frame (Months and weeks) Amount to Save Weekly Identify How: Time Needed, Cost, and Strategy Example: We need to pay off an old medical debt. $300 6 months/ 24 weeks $12.50 per week For the next six months, our family will cut back eating out to once a month. I will bring my lunch to work in a brown bag instead of eating at the cafeteria. 2 Derived from Nederveld and Chung, Faith & Finances, Session VI, page 8. 10

11 5D: Evaluate the short-term savings goals you have heard from others. Give a comment, suggestion, or praise by handing one of these four symbols to someone: ü Check Mark for a goal or idea that you affirm as realistic to experience I ll pass you a check mark, Peter, because I like your goal of. + Plus Sign for a goal or idea that you would add to... I want to offer you a plus. I suggest adding to your goal p Triangle for a goal or idea that you would change or subtract from I want to offer you a triangle, because I suggest changing.? Question Mark for a goal or idea that you have further questions about I have a question about your goal, Mariela, so I pass you this question mark We ll offer feedback to each other for 10 minutes. TASK 6: COMMIT TO SHARING OUR GOALS AND TO CONTINUE TRACKING OUR INCOME AND SPENDING (5 MINUTES) This week, let s go out and practice two things. 6A: First, commit to share your long and short-term savings goals with at least one other person in your life who can support you. This should be a positive person who can help you reach them. Tell the person to ask you about your progress regularly. Take a few moments to write this person s name in the box in your notes. I will share my savings goals with: 6B: Second, continue tracking all of your daily income and expenses on the sheets provided. Next week, each person will examine their daily income and expenses and develop a monthly spending plan. In order to develop this monthly plan, you must bring all of the income and expense tracking sheets that you have filled out over the past several weeks. Also, bring in copies of your receipts, checks, or bills if you can. We ll keep all of this confidential you won t be asked to share it with the large group. Come to our next meeting 11

12 with as much knowledge and documentation as you can about your own income and expenses. The more you know when you arrive, the better equipped you ll be to prepare a spending plan that will help you to meet your savings goals. 6C: Before we close, would a volunteer please pray for God to gives us courage and discipline in sharing our savings goals and tracking our daily expenses? 12

13 My Daily Income Date Description Amount Total $ 13

14 Faith & Finances Facilitator Guide My Daily Expenses Date Description Amount Total $ 14