The Personal and Social Responsibility Model (PSRM) uses physical activity to teach life skills to underserved youth. Students are given responsibility within PSRM programs in hopes they will transfer these responsible behaviors “Outside the Gym” (Hellison, 2003). Formal studies and evaluations indicate more strategies are needed to promote transfer in PSRM programs (Hellison & Walsh, 2002). Martinek and his associates (2001) report using goal setting strategies to promote transfer in a PSRM mentoring program. The purpose of the current study was to describe and evaluate a goal setting activity integrated into a school-based PSRM program. Over two consecutive years, a 20 lesson PSRM program was offered to four in-tact physical education classes at an inner-city high school. Participants were 97 (46 girls and 51 boys) African American students. Participants were introduced to the goal setting process and answered open response questions regarding goals and perceived obstacles in one lesson. In the following lesson, participants were given individual, written feedback and discussed relevant PSRM life skills. Examples from this activity were used to reinforce transfer through the remainder of the program. All participants were able to identify a long term goal. The majority demonstrated reasonable understanding of the goal setting process by identifying relevant short term goals and obstacles. Participant responses were content analyzed to identify and classify goals and obstacles. Participant goals clustered into three main categories: careers, athletics, and college. Careers included fields such as health care, entertainment, and education. Athletics included collegiate and professional aspirations. College goals included gaining admission, pursuing specific majors, and graduating. Obstacles to achieving goals clustered into three main categories: school, peer influence, and behavior/choices. Perceived problems in school included dropping out, not paying attention, and not working hard. Peer influence included barriers to doing the ‘right' thing and temptations to do the ‘wrong' thing. Behavior/choices included substance abuse, getting in trouble at school, and crime. Strong conceptual linkages exist between these perceived obstacles and PSRM life skills such as self-control, task-persistence, and self-direction. To interpret the effectiveness of this activity, participant responses were triangulated with observational field-notes and interviews with purposefully selected participants. In addition to data triangulation, trustworthiness was established through peer debriefing, interpretive member check, and checks for disconfirming evidence. Findings indicate this activity was effective in engaging participants in the goal-setting process, introducing the concept of transfer, and demonstrating real life applications of the PSRM “Outside the Gym”. Keyword(s): curriculum development, high school issues, youth-at-risk