Setting motivating savings goals with your kids
Introducing financial goals to your children. Tips on how to help them set motivating savings goals.
Setting savings goals is something that you are probably already very familiar with as an adult. However, it isn’t just something that just comes naturally. Teaching your children the power of goal setting is important when they learn about money management. Plus the earlier you start introducing the concept of saving money to your child, the better.
It’s a great idea to try and make the process of learning to set savings goals a fun experience for your kids. A way to do this is to focus on motivation. It is likely that your child will put more time and effort into reaching a goal that they themselves have decided on as opposed to one set by you.
Helping them decide this goal is the first and maybe one of the most important steps. Put aside some time to sit down with your child and discuss their potential goals. Try to remember that motivation is centred on allowing your child to set a goal that they are truly excited to achieve. Let them share a few options with you and decide on the goal together.
It may be useful to remind them that the best goals are the achievable ones – not too small and not too big. Once you and your child have decided what they are excited to save up for, it is time to put it in writing.
Try to keep the process as simple, visual and positive as possible to ensure they continue to be motivated by their goal. I recommend drawing up a “budget” to place on your fridge so that both you and your child can check in on it.
Your budget could include details that you and your child work on together including their saving goal, the date they would like to have reached it by and how they are tracking. I recommend the simple and effective “Savings Tracker”, which is downloadable here.
Remaining involved in the process of saving for this goal as time progresses is important, particularly through the means of positive reinforcement. If your child does not reach their goal by the original date, you can help them look at the reasons why and how to approach it in a different way.
The main idea of setting motivating savings goals with your kids is not about achieving success overnight, but rather taking your child on a learning journey financially. Then as your children grow and progress with savings goals, you can begin to introduce more sophisticated savings ideas and activities.
Take a look at the Beanstalk for more downloadable sheets and activities to help you teach your children about money management.