Saving is the first and most important money concept to learn for every child. However, children may not fully understand the purpose of saving, or they may have overly ambitious goals which are difficult to reach and this can make them feel discouraged.
Parents can help by encouraging their children to set more specific and personal savings goals with the SMART principle.
The goal must be specific and concrete, such as “saving $500 in one year for a video game console”. In contrast, targets like “I want to save money” are too vague.
The goal should be measurable, which means that the child can estimate the amount of time or money required to reach the goal. For example, in the aforementioned target, “1 year” and “$500” are clear indicators of the time and money needed.
The goal must be feasible and achievable. An ambitious goal that is too difficult to reach will discourage the children.
The goal should be down-to-earth. It would be unrealistic for a child with only $50 monthly pocket money to try to “save $3,000 in 1 year for a stay in a 5-star theme park hotel”.
The goal should come with a deadline so that the children may have a clearer idea of the time limit. A deadline will also strengthen their determination to achieve the goal.
Activity – Download “SMART Saving Kit”
Download the Kit for free now. Set savings goals with your children and encourage them to achieve the goals!
28 February 2019