How to Set Financial Goals with Your Kids: A Parent’s Guide

April is National Credit Union Youth Month – the perfect time to introduce your kids to the powerful world of financial literacy. Teaching them how to set financial goals isn’t just about saving money—it’s about setting them up for future success. Ready to guide your child toward smart money habits? Here’s a simple approach to setting financial goals with your kids.

Why Financial Goals Matter for Kids
Financial goals aren’t just for adults. Setting them teaches kids to value money, prioritize needs over wants, and plan for the future. It builds a foundation of financial confidence that will stick with them for life. From saving for a new toy to learning how to budget, financial goals give kids a sense of control over their money—and their future.

Steps to Set Financial Goals with Your Kids

1. Start with What They Want
   Want to grab your kid’s attention? Talk about something they truly care about—whether it’s a toy, game, or experience they’re excited about. Relatable goals make the learning process feel real and motivating.
2. Make Saving Simple
   Teach your kids that to get what they want, they need to save money. Set a clear goal: “We’re going to save $20 for the next 4 weeks!” Break it down—$5 per week—and watch them take ownership of their savings.
3. Use SMART Goals
   Make sure your kids’ goals are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For example: “Save $20 in 4 weeks to buy a toy.” This focused approach makes their goal easy to track and fun to achieve.
4. Let Them Take the Lead
   Whether it’s using a piggy bank or opening their first savings account, let your kids choose how to save and track their money. Ownership boosts their confidence and responsibility.

Stay on Track: Keeping the Momentum Going

1. Review Goals Regularly
   Weekly check-ins are key! Celebrate progress, discuss challenges, and adjust as needed. This keeps them motivated and teaches them how to adapt and problem-solve.
2. Introduce Budgeting Early
   Show your kids how to divide their money into three categories: savings, spending, and giving. Budgeting at an early age teaches them to manage money wisely and think critically about their purchases.
3. Lead by Example
   Actions speak louder than words. Practice setting your own financial goals and saving money. Don't be afraid to share goals for the family's future financial success! Show your kids how to prioritize and plan so they can follow suit.
4. Adjusting Goals for Success
   Sometimes your child might not hit their goal right away. And that’s okay! If they need more time or want to aim for a smaller amount, help them adjust. The key is to keep them engaged and focused on their goals, even if the path changes.

The Power of Financial Goals
Teaching your kids how to set and reach financial goals instills independence and self-discipline. They’ll develop a strong understanding of money management and be better prepared for the future. By empowering them now, you’re setting them up for financial freedom later.