Chapter 1 Planning: Your Financial Future Begins Here 7 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. In many cases, wants are related to values. A value is a belief about ideas and principles a person thinks is important. For example, a value for you might be honesty. One for someone else might be trustworthiness. They are different for everyone. Have you thought about your values? Your experiences and the ideas and beliefs of your family and friends may affect your values. Your values will affect how you think about and use your money. If you value helping others, for example, you may want to give money to charities or to those who are in need. By considering your values and then prioritizing your needs and wants, you can direct your financial future. A priority is a value or goal that is given more importance than other values or goals. Almost all of us desire things that are not needs. If you spend too much money on things you want, you might not have enough money to pay for things you need. By understanding the difference between needs and wants, you can make informed, reasonable choices based on the money you have available. Check Your Understanding Why is it important to know the difference between needs and wants? How do values play a role in determining needs and wants? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Sergey Novikov/Shutterstock.com A financial long-term goal is something you want to achieve in the future, like traveling. What financial long-term goals do you have for yourself?