Setting SMART Financial Goals
Did you know that learning about money and setting financial goals at a young age can help you become more responsible with your finances in the future? By setting SMART financial goals, you can save money for things you want, learn about budgeting, and develop excellent money management skills.
What are SMART financial goals?
SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Timely. Setting financial goals as SMART goals increases the likelihood of success.
- Specific: Be clear about what you want to achieve. Instead of saying, I want to save money, specify your goal, such as I want to save $50 to buy a new toy.
- Measurable: Make sure your goal is measurable, so you can track your progress. For instance, if your goal is to buy a bike that costs $200, measure your progress by setting smaller milestones, such as saving $20 per week.
- Achievable: Set goals that are within your reach. If your weekly allowance is $5, setting a goal to save $100 in a month might not be achievable. Instead, aim for a more realistic target like $20.
- Relevant: Goals are often easier to achieve if they match your interests. It can really make it easier to stop and think before spending money on something else, which may delay your goal of saving for that item you really want!
- Timely: Set a specific time frame to achieve your goal. Creating a deadline will make you more determined to save. For example, I will save $20 by the end of two months.
Tips for setting SMART financial goals:
- Start Small: Begin with short-term goals that are achievable, such as saving for a new toy or a book you want.
- Save Regularly: Get into the habit of saving a portion of your allowance or any money you receive as a gift. Even if it's just a small amount, it adds up over time.
- Track your Progress: Use a chart or a piggy bank to track your savings. Being able to watch your savings grow will motivate you to keep going!
Remember, it's never too early to start saving and being smart with your money!