For anyone hoping to have a successful financial future, learning how to set financial goals is not only important, but imperative as well. It is very easy to make serious money mistakes if one did not get the necessary foundation when they were young, and that could lead to a miserable life. You need to take charge of this aspect of your kid's life to ensure that they learn the importance of setting financial goals, and not find themselves in trouble when they are older.
Help Them Save With a Purpose
Children can be selfish sometimes, and would prefer not to do anything that does not have a direct benefit for them. Saving money just for its own sake will not get you far with your kid. You need to give them a reason they can use to put aside money. If there is something they really want, like a pair of shoes or a toy, then that would be an appropriate goal to work at. Encourage them to save towards the purchase of that item. They need to learn the benefits of saving to achieve personal gratification later.
Regulate Time Frame for Goal Achievement
For small children, the faster they are able to achieve their goal, the better it is for their morale. By their nature, they get bored quickly and are unable to maintain excitement for something that takes too long to get to. You should limit the duration in which a goal can be achieved to short periods. This should maintain their interest and encourage them to continue. You can increase the duration as they grow, and teach them that sometimes it is better to wait awhile to get what you want.
Teach Them the Importance of Working for Pay
It is important that your kids learn that nothing is free, and that everything you own as a family was earned through work. When we were growing up, our parents would constantly remind us that money did not grow on trees whenever we would be stubborn about things we wanted. One way to demonstrate this practically is to assign odd jobs around the house to your kids, and pay them for a job well done. They will connect how money and work relate to each other.
Buy Them Piggy Banks
You can buy piggy banks for children for your kids in which they can save any money received from you as a gift or pay for work done. This is a very convenient method of saving small money especially for kids. And because most of these piggy banks come in an array of colours and are generally attractive to kids. The piggies may not be toys, but the kids will enjoy them.