Whether it’s at school, a future job or for personal reasons, your kids will always be setting goals for what they want to achieve. Let’s make sure they’re SMART goals!
Listen to podcast episode 7 WITH YOUR KIDS, on the podcast player below or on your favourite podcast app. Note that the podcast content is different to what’s written in this blog post. This post is intended to be a summary for parents, so you know what to expect when your kids hear the episode.
Having goals is important, because they help us define and track the things we want to achieve. Kids will be asked to make SMART goals or some variation of them very early on.

Before I dive into this post, I want to point out that I’m not suggesting you turn this into a big goal setting assignment that both you and your kids will dread doing.
Try and make it exciting and something for them to look forward to achieving.
With my own kids, they told me what they wanted to buy. Then we had a quick chat about each of the SMART goal points we discussed during the episode, to make sure it was going to work out.
If they’re asking for a $500 power wheels car, but get $5 a week and the only place to store it is your kitchen sink, that’s not a SMART goal because it’s not realistic.
But rather than just being told they can’t have it, hearing that ‘no’ might be easier to accept, if they go through the process of thinking it through.
Guide your kids through their SMART goal with this free printable SMART goal checklist
In episode 7, your kids will hear us talk about:
- What goals are and why they’re important
- The definition of a SMART goal
- Relatable examples of SMART saving goals
Listen to episode 7 of the podcast WITH YOUR KIDS, on the podcast player below or on your favourite podcast app. Note that the podcast content is different to what’s written in this blog post.
Saving goals and the importance of delayed gratification
If your kids have been stashing away money from their birthday, the tooth fairy or their allowance, what are they going to spend it on?
Spending a dollar here and there on candy and random treats is OK and gives kids the opportunity to feel the burn of parting with their cash.
But alongside that, they should also be able to have some self control and save for something bigger. This is an essential life skill- delayed gratification.
Instead of having a small instant gain (like a $1 hot wheels car), delayed gratification is the ability to wait a period of time for something even better (like a $30 remote control car).
Kids probably won’t understand why delayed gratification is so important, and it’s not something that my kids and I discuss during the episode.
This is for you, the parent, to think about for their future.
If your kids are taking the time to save up for something big, you want to make sure that it’s a realistic and achievable goal!
That it’s a SMART goal.
You want them to be successful so that they want to continue achieving these goals and so they continue with their habit of saving before spending, through their teenage and adult lives.
Money experts like Beth Kobliner and John Lanza often discuss delayed gratification and reference the marshmallow experiment.
This is a classic experiment that describes delayed gratification and its importance, especially when it comes to having good habits and being successful as adults.
Is money from the save jar used for spending goals or is it going to the bank?
You may decide that what your kids put aside for saving, is going to their bank account instead of being for a short term saving goal.
If this is the case, you’ll need to make it clear to your kids that that money is untouchable.
Initially I had my kids save jar money earmarked for their bank accounts. But then I changed my mind because they weren’t interested in saving that way.
At their age it doesn’t mean anything to them. To them it seems like it’s going into a black hole that they would never see again!
They still added to the jar, but always with the question “do I have to put it in this one?”.
Regardless of whether it’s for a short term goal or long term in the bank, the point is for them to get into a habit of saving for something.
Related posts
Episode 3: Spend, Save & Donate
Episode 4: Options & Decisions, Needs & Wants
Rules for spending allowance money
We also have a few rules for what our kids’ allowance can be spent on. You’ll have to make your family rules clear to your kids.
Every family will differ in what is and isn’t acceptable for their kids to buy.
During Episode 7 of the podcast, my kids and I talk about how they should be making sure that they can actually buy what they want.
The R in SMART stands for realistic. As in: will your parents allow you to buy it even if you have the money?
Why should your kids have SMART money goals?
One of the many benefits of giving kids an allowance is to help them get into a habit of understanding and prioritizing their needs and wants
This way, they can prioritize what’s most important to them and not what you think they want.
That’s why, when the time comes for them to spend their money, we want them to be SMART about it.
In this episode, we discuss different goals that kids and adults make.
For example, independent reading for 10 minutes a day, riding a bike without training wheels by the end of the season or drinking 8 glasses of water a day.
We talk about what each letter in the word SMART stands for and share relatable examples for each:
S= Specific, M= Measurable, A= Achievable, R= Realistic, T= Timely
By taking a few minutes to talk about whether their goal is achievable, you could actually save them a lot of heartache and tantrums!!
Like when they realize that saving $1 a week for a $200 item, will take them almost 4 years to save up for…
Guide your kids through their SMART goal with this free printable SMART goal checklist
Should parents contribute towards their kids spending goals?
Experts like Beth Kobliner recommend that when kids first start to save for something, it should be a relatively quick goal to achieve, around 4 weeks, so they stay motivated.
What if there is something that you want them to save for themselves, so they have some skin in the game and appreciate more?
But you also know it will take longer than the recommended 3 to 4 weeks for your kid to save for it…
One thing that we’ve done to help speed the process up, is to offer to contribute a certain amount or percentage towards it.
Like when my 7 year old asked for roller blades. They were $100 so we told him we’d pay for half plus the safety gear.
If it’s something we probably would have bought if they didn’t get an allowance or is time sensitive, then contributing is a good option while still giving them the opportunity to save for it too.
This is a similar approach that many parents do when they match savings for the first car their kids buy.
If you do this, it’s important to make clear that you wouldn’t contribute towards everything they want to buy.
If they have 5 remote control cars and want a 6th…that’s all on them!
Another thing we do if we want to help move things along, is to pay the kids for some above and beyond chores like cleaning the car.
I’ve also helped my kids sell a few of their toys that they didn’t play with anymore!
So what’s next?
Listen to episode 7 of the podcast WITH YOUR KIDS, on the podcast player below or on your favourite podcast app. Note that the podcast content is different to what’s written in this blog post.
After listening to the episode, build on the content by doing the simple activities below.
End of episode activity: Make a SMART saving goal!
Pssst…remember what I said at the beginning about not turning this into an assignment they will dread doing?
Keep this conversation fun. The point here is to make sure they’re setting themselves up for a successful goal that they can feel good about. This will motivate them to keep doing it!
- Have your child make a list of what they want and then decide what they want most.
If they don’t understand needs vs wants, listen to Episode 4.
- Go through the SMART goal checklist (free printable available below) to make sure it’s an achievable goal.
They don’t need to write full sentences, but they should be able to check off the points to make sure it’s a SMART goal!
- Have them write down/draw a picture/print one from a catalogue of what they want to save for.
Put it on or close to wherever they keep their money, preferably somewhere visible!
- Write down how much they have and how much they have left to save. This will help them keep track.
Even better, encourage them to do the math themselves!
- If possible, keep the money in a clear jar so that they can see it growing every time they add to it!
- When they get their goal, make sure they know that you’re proud of them!
Being able to save up and wait for something is a big achievement!!
Guide your kids through their SMART goal with this free printable SMART goal checklist
Talk about some of your own goals
You don’t have to talk about money goals if you don’t want to. But if you’re asking your kids to make goals, they’ll appreciate hearing about some of yours.
They may even be able to help you achieve some of them!
For example, I have a goal of drinking 8 glasses of water a day. I’m terrible at remembering to drink water, so my kids are constantly reminding me throughout the day.
They even challenge me to have water chugging contests with them!
Other examples of goals you could talk about might be about a new skill you want to learn, how you’re saving up for a family vacation or how you’re planning on finishing that book you started reading a year ago!
Don’t just talk about them though, make sure to follow through with them.
This might help your kids feel encouraged and motivated to keep up with their goals too.
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