Spriha's Journey Towards Financial Literacy
Chapter 2: Setting Goals
Key topics in this chapter
1.1 What Are Financial Goals? Brief explanation about financial goals.
1.2 Short-Term Goals: Goals that can be achieved quickly.
1.3 Long-Term Goals: Goals that take time to be achieved.
1.4 Saving for Goals: Strategies for saving money to reach specific goals.
1.5 Exercise: Help your child set a financial goal.
Introduction
In our last chapter, we met Spriha, a young girl eager to learn about money. After understanding the basics of money, Spriha realised there was so much more to discover. Today, we join her on a journey to explore the exciting world of setting financial goals.
What are Financial Goals?
Have you ever wanted something so much that you couldn’t stop thinking about it? That’s a goal! A financial goal is a special kind of goal where you want to save money to get something you really, really want.
Spriha had a dream, a goal to own a shiny new bicycle. She loved riding her bike, and she dreamed of a beautiful one with a basket to carry her favourite books and snacks.
Short-term and Long-term Goals
Goals can be short-term or long-term. A short-term goal is something you want to achieve quickly, like buying a new toy or going on a trip. A long-term goal takes more time, like saving for college or a special vacation.
Spriha’s bike dream was a long-term goal. It would take her some time to save enough money for it, but she knew it would be worth it.
Saving for Goals
How can you reach your goals? Saving is the secret! When you save money, you put a little bit aside each week or month until you have enough to get what you want. It’s like building a treasure chest.
Spriha started saving a portion of her allowance for her bicycle. She counted her coins and notes, adding to her treasure chest regularly. She even decorated her savings jar with pictures of her dream bike.
Key Takeaways
- Financial goals are like dreams you want to achieve by saving money for something you really want.
- Goals can be short-term or long-term, and setting them gives purpose to your savings.
- Saving money is the key to reaching your goals, and tracking your progress with a chart can be motivating.
- By setting goals, like Spriha’s dream of a bicycle, you can plan and work towards making your dreams a reality.
- Setting financial goals helps you make informed decisions about how to allocate your money.
Spriha’s goal was to own that beautiful bicycle. She was excited to start her savings journey, and she knew that with patience and determination, she would pedal her way to her dream!
In the next chapter, Spriha will learn about the difference between needs and wants, helping her make smart choices about where to spend her money.
Exercise 2: Setting Your Savings Goal
It’s time to set your own financial goal! Think about something you really want, like a toy, a game, or a special treat. Draw or find a picture of your goal and place it near your savings jar or piggy bank. Decide how much money you need to save to reach your goal. Ask your parents for help and guidance.
Step 1: Identify Your Goal
- Choose Your Dream: Think about something you really want, like a new toy, a game, or a special treat. This is your savings goal.
- Find a Picture: Search for a picture of your goal. You can use a catalogue, a magazine, or print one from the internet. If it’s not possible to find a picture, you can draw a picture of your goal. This will make it more real and exciting.
Step 2: Determine the Cost
- Research the Price: Ask your parents to look online to find out how much your dream item costs. Write down the price.
- Add Tax or Extras: Remember to consider any additional costs, like goods and services tax or shipping fees, if applicable.
Step 3: Decide How Much to Save
- Determine a Timeframe: Decide how long you want to take to reach your goal. For example, you might aim to save for your goal in four weeks.
- Divide the Target: Divide your total savings target by the number of weeks. This will tell you how much you need to save each week to reach your goal.
- Set a Weekly Savings Goal: This weekly savings goal is the amount you should save to reach your goal within your chosen timeframe.
Step 4: Track Your Progress
- Start Saving: Begin saving money, and remember to put it in your special savings jar or account.
- Update Your Goal Chart: Create a chart, similar to the one you used in Exercise 1, to track your progress. Write down each week’s savings.
- Celebrate Milestones: Each time you reach a milestone, celebrate your progress. You’re one step closer to achieving your goal!
Step 5: Share Your Progress
- Share Your Goal: Talk to your parents about your savings goal. They can help you stay on track and celebrate your achievements.
- Ask for Support: If you’re close to reaching your goal but need a little extra help, you can ask your family for support or extra chores to earn more money.
By following these steps, you’ll not only set a clear savings goal but also understand the importance of planning and budgeting to achieve it. You’ll learn how to track your progress and celebrate your accomplishments as you work toward your dreams. Enjoy your journey toward financial literacy!