New Year’s financial resolutions
As someone who teaches financial literacy regulary, I’ve learned that if children are taught basic money management skills, they’re more likely to become adults who make smart and confident choices about saving, spending and sharing.
Looking forward to the new year, I thought about how to start my own kids off on the right financial footing. I was curious if my kids understood the concept of a new year’s resolution and if they’d be willing to declare a financial one.
Gathered at the kitchen table, I asked the kids what a new year’s resolution meant to them. Tiffany answered for the group, explaining: “It’s a goal that you set for the year around eating healthy, getting more exercise or better behavior.” I thought that was pretty good answer, so I encouraged them to each commit to a financial new year’s resolution.
• Erick answered first, declaring: “I have $50 in cash and I want to double it to $100.”
• Derek said, “I want to earn enough money to go to a WWE wrestling match.”
• Tiffany surprised me with her resolution. She said, “I want to give 10% of my earnings to homeless children.”
Afterwards, I sat down with each of them to help hash out a plan for achieving their goals.
• Erick’s plan: We figured out how much of Erick’s allowance he would need to save in order to reach his goal of doubling his $50 in savings to $100. Since Erick earns $2 per week, in 52 weeks, he’ll have saved $104. If he sticks to his plan, Erick will be well on the way to achieving his goals.
• Derek’s plan: We estimated the total cost of WWE tickets plus refreshments to be $126. Since Derek earns $2 per week, in 52 weeks he’ll also have saved $104. In this case, Derek and I agreed that he can use $50 from his savings to reach the goal – and he’ll get to attend his first WWE wrestling match.
• Tiffany’s plan: We calculated Tiffany’s potential earnings for the year to also be $104. Tiffany has committed to giving 10% of her earnings ($10.40) to the charity of her choice and says she’ll feel satisfied and rewarded by helping others.
Have you thought about a financial new year’s resolution? How do you involve your children?