Launch: Making Significant Financial Decisions

Launch: Making Significant Financial Decisions [∞] \

Provide a decision-making scenario: A family is deciding whether to buy a house, invest in a business, or save for their child’s college education. Each option has risks and benefits, and students must analyze the trade-offs to make a recommendation.

Socratic Questions:

1. How did you balance short-term and long-term goals in your decision?
   • A) Do you think prioritizing long-term goals might limit short-term gains, or could it provide more sustainable benefits over time?
   • B) Could focusing on short-term goals potentially jeopardize long-term success, or might it lead to quicker achievements?
2. What role does risk play in significant financial decisions?
   • A) Is risk an unavoidable part of financial decisions, or can careful planning eliminate much of it?
   • B) Do you believe some risks are worth taking for the potential of higher rewards, or would you prefer to minimize risk at all costs?
3. How might emotions influence financial decision-making, and how can you address them?
   • A) Can emotions cloud judgment and lead to poor financial choices, or do they sometimes offer valuable insights in decision-making?
   • B) Do you think it’s more effective to suppress emotions entirely when making financial decisions, or is it important to acknowledge and manage them consciously?

Challenge: “Family Financial Decision Dilemma”