MONEY SMART GRADES 3–5: Parent/Caregiver Guide

Lesson 2: Get Set for Goals

Topic: Setting Goals

About This Topic:
By learning to set goals and think critically about the purpose of advertising, children can make smarter decisions about saving and spending.

From the Classroom:

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

What's 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, earning a good grade on an upcoming test). A long-term goal is something you want to accomplish further in the future—in a year, five years, or once you're an adult (for example, mastering an instrument like the violin or attending college).

Why does setting goals matter? Setting goals helps you stay focused on what you actually want to accomplish.

What is a savings goal? A savings goal is a specific amount of money you plan to set aside in order to buy something.

What is the purpose of advertising? Advertising exists to persuade people to buy a product, which allows the company paying for the ad to earn money.

How might advertising affect your choices about spending or saving? Ads can push you toward spending money instead of saving it—or spending more than you originally intended.

Words to Know:

• Advertisement (or Ad): A public message that a company pays for in order to promote a product or service and boost sales.
• Long-Term Goal: Something you aim to achieve in the future—in a 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 aim to achieve soon, such as within two weeks or a few 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—ultimately helping his entire family.
• Danny Dollar Millionaire Extraordinaire—The Lemonade Escapade by Ty Allan Jackson: An eleven-year-old named Danny Dollar pursues his dream of becoming a millionaire while teaching readers the basics of financial literacy.
• Lulu Walks the Dogs by Judith Viorst: Lulu works hard to earn money toward her mysterious "super special" long-term goal.

Games and Online Resources:

• FTC Admongo: An adventure game that teaches players how to critically evaluate advertisements. http://game.admongo.gov
• PBS Don't Buy It: Fun quizzes that reveal the tricks advertisers use. 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? What steps could you take toward it?
• What commercials or ads did you notice today? Describe the one that stuck with you most.
• How did that ad try to convince people to buy its product?

Try This at…

Home:
Create a Goals Chart: Share a few of your own short-term and long-term goals, along with your plan for reaching them. Have your child do the same. Write everything down on a chart so you can track 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, the techniques it uses to persuade viewers to buy the product or service, and who its target audience might be. You can extend this conversation to ads you encounter on the radio or online.

Doctor's Office:
Examine Magazine Ads: While waiting, look through magazine ads together. Discuss the purpose behind each one and how it attempts 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.