Why are they important?
Goals are things you want to achieve or accomplish. They can be short-term, like by the end of the month, or long-term, like by the time you are old enough to drive. When you set a goal, think about what is most important to you to stay on track. Savings goals work the same way. When you want to buy something, but don’t have the money right away, you can set a goal to help you save the amount you need.
How do I set a savings goal?
A savings goal should include what you want to buy, how much you need to save, when you need to have it by, and how you plan to save. Savings goals, like other goals, can be short-term or long-term. To achieve your savings goal, you may have to decide not to spend your money on other things along the way.
Having a savings goal helps you plan for the things you want. If you don’t have anything specific in mind right now, you can still set a savings goal to help you have the money when you do.
Let’s look at some examples.
Isabella, a fourth grader, loves to play basketball. She is on a team that plays once a week. She wants to go to basketball camp next summer, but her parents said she had to earn the money to go. Isabella’s goal is to save $100 by next summer. Isabella has a plan to rake leaves this fall and shovel sidewalks in the winter for the people in her neighborhood to earn the money. She has nine months, so she needs to earn about $23 a month to reach her savings goal. With her parents’ permission, she starts to let her neighbors know she is ready to work.
Noah, a fifth grader, is interested in music. He would like to buy an electric guitar. He found a deal that includes an amplifier for $150. Noah got $25 for his birthday, but still needs $125 more to buy it. He makes $25 a week by walking his neighbors’ dogs and dog sitting after school and on weekends. If he continues to walk his neighbors’ dogs, he will be able to save enough money to buy the guitar and amplifier in just five more weeks.
What are your savings goals?
To set a savings goal, start by looking at what you would like to save for, how much you will need, and when you need it by. It really helps to think about what is important to you, so you can set a savings goal that you want to accomplish. Don’t forget to keep that hard-earned savings in a bank account so you can keep it safe and watch it grow!
Student Questions:
- When I think of things I want to achieve or accomplish, what is one of my goals?
- What are some of my short-term goals?
- What is one of my long-term goals?
- List three things that are important to me.
- List the things I want to save for.