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Talking to Kids About Setting Financial Goals

January 17, 2022

Every parent dreams of raising their children to live a financially healthy life, right?  The hope is for kids to make better choices than we did.  The journey to financial health is one that will be significantly beneficial if started at a young age. This is why Walter the Vault believes that talking to kids about financial goals just makes “cents.” 😉

Children have many wants. They want that shiny new toy. They want that ice cream cone. They want that adorable, fluffy puppy. This is perfectly normal! These wants also grant parents the perfect opportunity to begin their children’s journey to financial health.  As kids start to learn the difference between “wants” and “needs” – they will learn the benefits (and necessities) of deciding what to spend money and NOT spend money on.

In the adult world, you may see that beautifully large HDTV and dream about how beautiful it will look on your mantle. This is where financial goal-setting sets in. Do you have enough available money to reasonably buy this TV? If not, you may be tempted to take it out in credit, but this decision may leave you stressed in the future.

Setting financial goals will allow you to create a plan to get enough money to buy that dream TV. And, let’s be honest, smashing that financial goal makes watching a movie on your new TV that much sweeter. This is exactly why talking to our kids about setting financial goals from an early age can be so great.

As your little one’s eyes open wide in wonder at the toy aisle in the grocery store, you can begin the conversation about financial goal-setting. Sit with them and consider the steps they have to take to get the money for their dream toy.

Should they pick up a few extra chores around the house? Should they stop buying candy every grocery store visit? You can even create a chart to help them visualize their goal and see just how far they are from achieving it!  Many parents report that when kids have money of their own to spend, they’ll be much more picky on what they actually want to purchase (instead of spending their parents money).  This is why some parents choose to give their kids an allowance or a way to make money.  When kids are given limited resources to make decisions with, they start to weigh the pros and cons of their spending choices.

Money mastery is a long journey. Starting your little ones from a young age just might have them thanking you later!

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