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Long term vs short term goals in financial education (Examples + SMART Goals)

What you will find in this article:

A study from Scranton University says that 92% of people that set their New Year's Resolutions don't actuall reach those goals

What's the difference between this majority and the 8% that actually reach their goals? Are the latest more capable? No. The difference is that the 8% know how to corectly set goals.

"If you fail to plan, you plan to fail." 

If you want the kids to be able to reach their goals, they must learn how to properly set them. And if you want to set attainable goals, download the worksheet belo. (The worksheet is in romanian but if you want the english version, send us an email at contact@investory.app) 

Setting goals in financial education

Kids need to learn about setting up long term goals and short term goals ever since they are 6-9 years old. Setting these goals is at the base of other financial lessons, such as economies, budgeting, the difference between wants and needs or delayed gratification.

Goals are something that kids want to achieve in a given time period and with a set sum of money. The need to set goals appears when the kids need more money than they get in a cycle of recurring income.

Setting up goals is a skill by itself. It is a skill that can be learned and perfected by kids. At this age, they learn to set various goals such as those that are about achievements, such as school grades, or habit forming goals. Next, we will talk about financial goals which are of two types:

imagine pe fundal alb cu un bărbat în mijloc cu o săgeată cu obiective pe termen lung, în stânga lui, și una cu obiective pe termen scurt, în dreapta lui

1. Short term goals

Kids need to learn about setting up long term goals and short term goals ever since they are 6-9 years old. Setting these goals is at the base of other financial lessons, such as economies, budgeting, the difference between wants and needs or delayed gratification.

Goals are something that kids want to achieve in a given time period and with a set sum of money. The need to set goals appears when the kids need more money than they get in a cycle of recurring income.

Setting up goals is a skill by itself. It is a skill that can be learned and perfected by kids. At this age, they learn to set various goals such as those that are about achievements, such as school grades, or habit forming goals. Next, we will talk about financial goals which are of two types:

educație financiară obiective smart copii

Examples of short term goals:

Uite câteva exemple de obiective financiare pe termen scurt. Printre aceste obiective, pot fi atât obiective financiare cât și obiective ce țin de obiceiuri sau realizări. 

  • By the end of the year, kids should be able to put aside 6 bucks every month. 
  • To be able to buy a LEGO set from their own money in the next couple of months. 

You see how these goals are formulated? They use the principle of SMART goals, which helps kids achieve what they want in an easier way. If you want to learn together about setting up goals, download the worksheet below. (The worksheet is in romanian but if you want an english version, send us an email at contact@investory.app)

2. Long term goals

Long term financial goals are those that require a bigger sum of money and multiple cycles of recurring income. If a kid gets, let's say, 50 bucks a month, a long term goal might be something that requires 100 bucks or more.

Examples of long term financial goals

A few examples of long term goals for 6-9 year olds might be:

  • Raise 1300 lei to afford a PlayStation 4, second hand, out of their own money, by Christmas 
  • To develop a whole new income source to afford a new dvd with a video game, each month. 

This objectives are set using the SMART approach. If you want the kids to learn how to formulate these, download the worksheet below:. (The worksheet is in romanian so if you want the english version send us an email at contact@investory.app) 

How to teach kids to set goals they can easily reach? - SMART goals

As we promised, we will show you the formula that kids need to use when setting up goals, to make it easier for them to achieve those goals. 

The SMART formula means goals that are: 

Specific - What do the kids save for?

Measurable - How much do they want to save?

Attainable - Is the objective realistic?

Relevant - Is is worth saving for?

Timebound - In how long will it be achieved?

If every goal, short or long term, is set using the SMART formula, it will be easier to achieve.  

Let's see an example: 

  • Raise 1300 lei to afford a PlayStation 4, second hand, out of their own money, by Christmas. 
Obiective SMART fișă de lucru

Download the worksheet below and let the kids set goals that are easy to achieve like the one about. (The worksheet is in romanian, for the english version send us an email at Contact@investory.app)

Put the lesson to practice with the help of a free video game, that uses an innovative learning approach.

With the help of game-based learning kids will not only learn the lesson but also try it and put it in practice! All you have to do is download the free game below.

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