Setting a target is the easiest way of reaching any goal more quickly. Think about the finish line in a race or completing your homework by 7pm so you can watch your favourite TV show. Goal setting works.
It’s the same for saving money. Setting goals can help you achieve the amount you want to save.
Whether it’s saving a big amount for a new bike or just a little for a new toy, it’s important to be able to visualise* what you are putting your money away for.
Looking at the savings habits of older Australians, Westpac’s 2017 Saving Habits of Millennials survey suggests this is the case, with two-thirds of Australian millennials (aged 18 to 35) believing they could save more if they simply had a goal in mind.
The research reveals that Australian millennials with regular savings habits and specific goals were twice as likely to save, compared to their friends who didn’t set goals.
Of those millennials with savings goals, 41 per cent were likely to save $500 or more each month, compared to only 22 per cent of those with no set goals.
Westpac Head of Youth, Millennial and Women’s Markets, Felicity Duffy, said this research showed it was important to find simple ways for children to understand saving and to be encouraged by the progress they are making as they put more money away.
“You’re never too young or old to set a savings goal. Whether you’re five-years-old and saving for an X-box, or you’re 55-years-old and saving for retirement*,” Ms Duffy said.
TIPS TO SET SAVING GOALS
1. Create a savings goals chart
A great way to visualise goals is to create a savings chart you can display somewhere prominent* (on the fridge is always a handy spot).
Create a table and put a picture of what you are saving for alongside a box for every week you’ll need to save until you’ve reached your goal. Then each week you can colour in the box with a crayon, as you move closer to your savings goal. That way you can track your own progress easily by simply counting the number of boxes filled in, to see how much you have saved up to that point and the number of weeks still to go.
2. More than one goal? Try different coloured jars
If you have more than one item you are saving for, you could use a jar system. Stick a picture of each item you want on different jars. Each time you get pocket money or money for doing chores you can deposit different amounts into each jar.
3. Keeping the motivation going with a rewards system
Ask your parents if they will reward you for reaching mini-milestones while you are saving. For example, if you need to save $50, perhaps your parents might give you a small contribution when you reach the halfway point of $25. Or maybe you could agree on another treat such as a trip to the movies or a hot chocolate together.
4. Open a savings account
Ask your parents to consider opening up a savings account for you and keep an eye on how much your money grows as you continue to deposit* savings into it.
retirement: finish your working career
deposit: place something somewhere for safe keeping (ie, money in a bank)
LISTEN TO TODAY’S STORY
1. What percentage of millenials saved $500 or more after setting a savings goal?
2. What age are millenials?
3. What is the jar system for saving?
4. Name two mini-milestone suggestions named in the story.
5. Explain what a savings account at a bank is.
1. Saving vs Spending
Work on your own personal income statement to help you set and reach your desired savings goal. Fill out the form below to help you complete your income statement and then set your own saving goals.
PERSONAL INCOME STATEMENT FOR ………………………………….
Monthly income (where you get money from…. could be pocket money, birthday money, job money etc);
Total monthly income:
Monthly expenses (things you pay for each week or month such as phone credit, treats, things you like to buy yourself);
Total monthly expenses:
Money left-over (Total monthly income – total monthly expenses) =
I am saving for…..
I’d like to buy this by (date)………….
An incentive I could ask my parents for to help me to reach my goal is………….
Extension: Work with a partner and write down 3 things you learnt from reading this Kids News article:
Do you plan to change what you do with your money or how you could go about saving it?
Time: Allow 25 minutes to complete this task.
Curriculum links: Mathematics, English
The glossary of terms helps you to understand and learn the ambitious vocabulary being used in the article. Can you use the words outlined in the glossary to create new sentences? Challenge yourself to include other VCOP (vocabulary, connectives, openers and punctuation) elements in your sentence/s. Have another look through the article, can you find any other Wow Words not outlined in the glossary?
HAVE YOUR SAY: Have you ever saved up to buy anything big or important to you? What was it and long did you save?
No one-word answers. Use full sentences to explain your thinking.