Tuesday, November 23, 2021

What We’re Teaching Kids About MoneyGoals?

Children want to understand where goal setting is for them now and where they want to be in the future. 

When they are young, they set goals and achieve them, they are ready to move their future into adulthood. There's money for this.

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You may be familiar with the goal-setting process - a well-known strategy for achieving effective goals. It can also be used for financial purposes. After your kids read the stories in your app, share their S.M.A.R.T. # Money target.

This is your instant review!

S (Normal)

Once children have set a goal, they should start paying attention to it and think about the details. Who, what, when, where will answer all such important questions.

Let's say their goal is to help pay for their class trip to New York City. In general, "save $10 per week for 25 weeks -- versus paying $250 for an NYC class trip."

M (Measurable)

They must break the target by stepping on the road. It makes them feel self-reliant and helps them measure their progress. If they are measurable, they have a good chance of getting here.

For example, let's use a car with 6,000 parts.

If they want to achieve that goal in 3 years from today, let's quickly do the math! $6,000 / 3 = 2,000 annual savings. We'll do small portions of it every three months to make up for overtime. Divide $2,000 by 4 to get $500 for each milestone.

This is a good thing to do, and it should end there. That's $500 per step. It is measurable.

A (received)

Goals should be realistic. 

It is not realistic for them to expect more savings than what they earn. But see what they can change. They will look for new ways to earn money. Or are they wondering what they want to achieve in the future after getting their first job?

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Key Solution: Just because something doesn't seem possible now, doesn't mean they can't take action in the long run.

R (related)

Not only a good education but also his alertness and dedication are needed the most. Like adults, children should spend their money and their time on the most important things.

If their dream is to start earning money when they're young, maybe their own car in high school isn't what they really want. If he doesn't contribute to his car savings, how can he raise money instead? At 8% interest over 10 years, $6,000 pre-tax and inflation could rise to about $13,000. That's double!

T (by time)

When do they want to achieve their goal? They should set a time limit to stay motivated and help them complete all the steps along the way.

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They want to graduate from higher education without student loans. Or a year-long trip around the world before graduate school. Choosing an actual date for a day will help that day arrive.


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