Lesson 2: Get Set for Goals

Topic: Setting Goals

About This Topic:
When kids learn to set goals and understand why advertisements exist, they can make smarter choices about saving and spending money.

From the classroom:

What is a goal? A goal is something you plan to achieve.

What is the difference between a short-term goal and a long-term goal?
A short-term goal is something you want to accomplish soon—today, this week, or next month. For example, getting a good grade on an upcoming test is a short-term goal. A long-term goal is something you want to accomplish further into the future, like in one year, five years, or once you're grown up. Learning to play the violin or going to college are examples of long-term goals.

Why is it important to set goals? Setting goals helps you stay focused on the things you want to achieve.

What is a savings goal? A savings goal is a specific amount of money you plan to set aside so you can buy something later.

What is the purpose of advertising? Advertisements (ads) are created to persuade people to buy a product. Companies pay for these ads because they want to make money from sales.

How might advertising influence your decisions to spend or save money? Ads can tempt you to spend money instead of saving it. They might also convince you to spend more money than you originally planned.

Words to Know:

• Advertisement (or Ad): A public message that a company pays for to promote a product or service and boost sales.
• Long-Term Goal: Something you want to achieve in the future—maybe in one year, five years, ten years, or beyond.
• Savings Goal: The specific amount of money you plan to set aside for a particular purpose.
• Short-Term Goal: Something you want to achieve soon, such as within a few weeks or months.

Resources:

Books:

• It's a Habit, Sammy Rabbit! by Sam X Renick: Sammy discovers a secret about saving money and puts it into action—which ends up helping his entire family.
• Danny Dollar Millionaire Extraordinaire—The Lemonade Escapade by Ty Allan Jackson: Eleven-year-old Danny Dollar chases his dream of becoming a millionaire while teaching readers about managing money.
• Lulu Walks the Dogs by Judith Viorst: Lulu works hard to earn money so she can reach her mysterious "super special" long-term goal.

Games and Online Resources:

• FTC Admongo: Play this adventure game to learn about spotting advertising tricks. Visit http://game.admongo.gov
• PBS Don't Buy It: Take these fun quizzes to learn more about how ads try to persuade you. Visit http://pbskids.org/dontbuyit

Conversation Starters … Ask Your Child:

• What are your short-term goals? How do you plan to reach them?
• What's one of your long-term goals? How could you work toward it?
• What commercials or other ads did you see today? Describe the one you remember most.
• How did that ad try to convince people to buy the product?

Try This at …

Home:
Create a Goals Chart: Share some of your own short-term and long-term goals, along with your plans for reaching them. Then ask your child to share theirs. Write everything down on a chart so you can track your progress together.

Talk About Commercials: Turn TV time into a learning opportunity by discussing the commercials you watch together. Talk about each commercial's purpose, how it tries to convince people to buy the product or service, and who the ad seems to be targeting. You might also talk about ads you hear on the radio or see online.

Doctor's Office:
Examine Magazine Ads: While waiting for an appointment, look through magazines together and point out the advertisements you find. Discuss each ad's purpose and how it tries to persuade people to buy the product or service.

Bank:
Open an Account: Set up a savings account for your child. They can work toward a long-term spending goal by adding money to the account whenever they earn or receive it as a gift.