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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?
- Make the goal Last. Have your teen write the goal in a visible place. Talk to your teen about the goal from time to time. Bring it up at mealtime, in the car, or anytime that a great conversation will pass the time well.
(The “How” part will be discussed in subsequent posts. Stay tuned!!)
© WealthQuest for Teens, Ltd., 2011 All rights reserved worldwide.