When you have that first and most important money conversation with your teen about setting a long-term financial goal, there are a few things to keep in mind:
- The goal your teen sets is a number and an age. For example, “I’m going to have $2M dollars in a bank account by the time I am 50 years old.”
- The “How” is NOT part of this conversation. The “How” is the journey that follows this conversation. Separating the goal from the “How” is important for all goal-setting in life!
- Make sure the goal is realistic. 50 Billion dollars by age 21 might not be real, but $2M by age 50 certainly is.
- Make the goal matter. The goal is part of your teen’s big vision for his or her life. Money goals matter when they are connected to questions like:
- What will your life be like if you reach that goal?
- What options will you be able to have (that you normally wouldn’t have had) if you reach that goal?
- What kind of difference will you be able to make if you reach that goal? Who will you be able to help? What will that be like for you?
(The “How” part will be discussed in subsequent posts. Stay tuned!!)
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