Saving for your Goal

We learned from my last blog how and when to give your child an allowance. Now we need to teach them to set that allowance aside to purchase the things they want. Below is a step by step guide, following the basic principles of financial planning that you can use with you child.

Step 1: Talk about what they want to purchase. Ask them why they want that particular item. Sometimes they cannot explain why and will decide not to spend their money on an item that is not so desirable. If they still want to pursue that item, then determine the cost.

Step 2: Gather data: What do they currently have saved and what do they still need? What resources are available for them to earn money vs. waiting for their allowance to come in.

Step 3: Analyze: Make a poster board and write in the weeks needed to accummulate enough allowance to purchase their goal. This will help your child literally see when they can buy their item. Let them know they have other resouces available from step 2 in order to earn money prior to waiting for their allowance to come in.

Step 4: Reccomendations: Determine from step 3 if your child will wait for their allowance to accumulate or do something else to earn the money needed for the purchase.

Step 5: Implement: Start saving or applying your other resource!

Step 6: Monitor: Track your progress each week. Write on your poster board what you made and how much allowance you recieved each week. Add up what your currently have to what you just recieved for the week and keep a running total. You’ll always know where you are in achieving your goal and what you still need to do or how long to wait until you will accomplish it.

Anyone can follow the 6 steps in financial planning, just adjust them to each person’s learning ability. Good luck and have fun with it!

Save your coins, Susie Saver

P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com

Financial planning lessons are posted two times a month. Next lesson on, “The Lemon-Aid Stand.”