Now that you and your kids are all set on the S.M.A.R.T. financial goals, the next helpful step is to create a money plan. But then again, why is creating a money plan important? Well, we all know how hard it is to keep children focused on things, so having a clear-cut plan will make them focused on achieving their dreams! It can also demonstrate to your kids what needs to be done in order to meet their goals within the specified timeframe.

So, hurry up…let’s get started! We will guide you column-by-column on how to complete the money plan below:

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Column (A): How much do you want to save?
This column is simply about your kid’s S.M.A.R.T. financial goal, in other words, things they want to buy. As stated in our previous article, your kid’s goal must be specific instead of fuzzy. Example: “I want to save RM 500.00.”

Column (B): How much is your savings now?
Does your kid know how much he or she has in their coin box or savings account? If not, then they will need your help in finding out whether they have RM200.00 or no money at all for example.

Column (C): How much more do you need?
In this column, your kid will find out how much money they will need in order to turn their dreams into a reality. Have them deduct the amount they intend to save with the amount of savings they currently have.
Example: RM500.00 - RM200.00 = RM300.00

Column (D): How much can you save in a month?
This column makes sure that your kid’s financial goal is time-bound, whereby they will have to plan on how much they will save per month. Example: “I want to save RM300 in six month's time.” However, it is very important to ensure that this is a realistic timeframe for your kid. Can they really save RM50 a month?

Column (E): When can you reach your money goal?
Here, your kid will be aware of when exactly he can reach his money goal. This will help keep him focused on it.

Column (F): How can you save more money?
Let the creative juices start flowing! In this column your kids will have to come up with ways to save the amount of money required to make the purchase. Your kids can be as creative as they want! However, it is your duty to make sure those wild suggestions can actually be followed through. For example, your kids can bring a lunchbox to school, get paid for doing extra work around the house, or even sell old items you no longer need.

Stay on track
When your kids have their plans in place, the next important step is to implement them or to “make them happen”.  How are your kids going to make sure that they stay on track to achieve their financial goals? Here are some tips to assist them:

• Write their goals on a cardboard or find pictures of their goals and post it in a place where they will see everyday (e.g. refrigerator door, bedroom mirror, study desk, etc.)
• Tell their friends about their goals. Also, have them ask someone (other than their Mom or Dad – you!) to check on their progress. Knowing that someone is going to ask about it is a good motivation!
• Remind them to always think of their financial goal when they feel the urge to buy that delicious candy!
• Review their plan regularly (once a week or once every two weeks) so they know when they are starting to stray from their plan and can make adjustments quickly.

Check and change
Remember, a plan is not meant to be written in stone! Your kids might get upset if they are unable to meet their goal within the specified timeframe. So remind them to constantly review their plan and make changes accordingly when unexpected situations occur.

When they finally achieve their long-awaited goal, celebrate with them and cross it off their list!

Finally, have your kids revisit their list and ask themselves these questions:

• Are my existing goals still worth achieving?
• Is there a new goal to add to my list?
• Is there an existing goal that I want to drop or change?

As adults we tend to take life a little too seriously. So as you help your kids create their money plan, remember to savour the moments spent with them and just have fun! Your kids will notice that you are enjoying yourself and that, in turn, will make them more cooperative. When that happens, things will work wonders and the kids will realize their goals in no time!

Our next lesson will be on that famous ‘b’ word – Budget! So stay tuned for more. Download and make copies of our Money Plan from the online tools section today!