While kids are quick to understand short term money goals, teaching them to set mid and long term financial goals may not be that easy. If you work to follow all of the suggestions we have shared here, then perhaps the financial goal teaching side of parenthood will be easier for you and your kids.
Children need to learn how to set money goals because they will become an adult at some point and it is smart that they learn to to start planning for their financial future now.
Here are some tips on how you can help your kids create their own money goals without much stress.
If your child has some short and long term spending goals, try to work with them to figure out how much money they currently have and how much is needed to purchase that wanted item. Create a little print out that will help the kids have a visual for how far they have saved or use a mobile app like Homey that will do the leg work for you.
Have each child own two accounts or piggy banks; one for long term savings and one for quick spending. The long term savings will be for either large purchases or adulthood, which is up to you. The quick spending will be where they save cash for shorter periods of time for smaller purchases. It is best to connect the long term savings to their bank account (Homey app makes transferring money to a kids’ bank accounts really easy!) where the money is safe and they can accumulate interests, while the spending money can be in a piggy bank or in their wallet in cash form.
Weekly Balance Chart
Have a balance chart for money goals for your kids put up in a place where they will see it. Think of a balance chart being similar in looks as a bank reconciliation statement would look
like. Have money in, money out and balance. Help your kid fill it out daily and weekly.
Think Big Picture
Last, but not least, you will want to teach your kids how to think about the bigger picture. As your kids get older so will their wants and needs. Teach them to be responsible with money by setting money goals using the tips above form a young age so they are always financially savvy.
Be the Example
While you may not want your kid to see your own personal money goals or balances, consider having them be part of a vacation savings. Use the above options for your own money saving goals towards something for the whole family. You are the parent and you know your kids best. Each kid may be different in how they learn and how they work with money. All that you can do is work with the above tips and guide your kids in new ways to set and achieve their own long and mid-term money goals.