Good Financial Decision Making

Interactive Video

[A smiling family: mother, father, daughter; purchasing a new television.]

[A wheel showing each zodiac image and name beside the number “20%.”]

Narrator: Hey, did you know that almost 20 percent of people living in the United States have made a financial decision based on their horoscope, according to PR Newswire?

[A woman standing and holding a magic eight ball.]

That's kind of like trusting a Magic 8 Ball to make your life choices! Maybe it's best not to leave your big decisions to the stars or pure chance. [Magic eight ball flies out of the woman’s hand.]

[A smiling family: mother, father, daughter; purchasing a new television.]

People make decisions about money for all kinds of reasons. Some decisions are easy, like yeah, I’ll buy that! Charge it! [A credit card appears with the words, “Charge it!”]

[A distressed woman with a hand on her forehead. Her thought bubble contains a credit card.]

And sometimes later, you can regret that decision, have buyer’s remorse, and potentially cause yourself financial problems. 

[A woman with a sad expression on her face, holding a credit card in her hand.]

Poor financial decisions can be things like spending more than you make, not paying off credit card debt if you can, paying only the minimum payment on a credit card, and not having an emergency fund. [Bulleted points appear on screen: spending more than you make, not paying off credit card debt, paying the minimum payment, and no emergency fund.]

[A young woman looking thoughtful while holding a credit card against her forehead. A magnifying glass with a dollar sign appears.]

Now, let’s focus on ways to make good financial decisions so you don’t start sweating every time you think about money. 

[A woman with a distressed expression on her face while looking at her energy bill. There is a single tear on her right cheek.]

Everyone faces financial challenges and hard money decisions. 

[A collage of people shopping for new clothes and electronics.]

We live in a society that constantly tempts us to spend money, whether it’s the latest fashion trend or electronic gadget. 

[Instruction text: “What guides good financial decisions. Select each card.” Three flip cards appear on screen.]

So, what guides good financial decisions? Select each card.

Card 1 

• Front text: Be aware.
• Back text: Good decision making is born out of being aware of what you’re doing, and then forming good habits over time. You can’t ignore money issues or just keep on doing the things that have gotten you into financial ‘hot water.’ Be honest with yourself. Work within your financial means. If you share finances, share the truth and work together.

Card 2

• Front text: Stop and think.
• Back text: Money doesn’t grow on trees, at least not that I’ve seen. So, your money choices will have an impact on you one way or the other. You’ve got to consider both small and large purchases to think about how they affect you now and later. And ultimately decide if it’s worth it.

Card 3 

• Front text: Use convenience.
• Back text: In this day and age, why not leverage the automated or digital tools available to you like direct deposit or auto pay. Then, you aren’t facing recurring decisions. You make the decision once, set it up, and forget about it. And meanwhile the positive money actions, like saving money or paying bills on time, are happening in the background!

[A young man holding up two fingers.]

There are two golden rules of money. Don't spend more than you earn and save as much as you can. Those are the true best practices.