How to Set Achievable Financial Goals

As a teenager, I’ve been told countless times to set goals for my future. I’ve heard this from family, teachers, the few podcasts I’ve listened to, and probably that one annoying neighbor. I’d be surprised if there’s a single teenager out there who hasn’t at the very least been asked to write some New Year's resolutions. While it’s true that setting goals can be effective, it can also be stressful and useless if it isn’t done the right way. In this post, I’ll show you how to set realistic financial goals at a young age.

Setting financial goals should be the same process as setting fitness, career, or any other type of goal. As an example, let’s pretend that you want to save up for your favorite artist's concert.

First off, the goal itself needs to be specific. Telling yourself that you’ll put away money to go see a concert is not practical. You need to include how much money you need for the show, how you’ll make this money, what resources you’ll need to achieve this, and when you will make enough to pay for it. The process needs to be included in the goal or else it is just a wish.

Your goal must also be achievable, which will depend on the price of the concert, your current income, and how much time you have to accomplish it. If you’re set on buying front-row seats at a Drake concert, for instance, these are going to be significantly more expensive than some nosebleed seats at his concert. If you have a month to save up for the front-row tickets, this may not be a realistic time frame if you are earning minimum wage income or just an allowance as a teenager. That doesn’t mean that there aren't ways to make the additional money needed but setting unrealistic goals without a plan to make them achievable won’t get you anywhere.

Lastly, make sure that the goals you set are relevant to you. Don’t set goals that you won’t follow through on or ones that you’re not sure you truly want to work towards. If you want to go to the concert but doing so will force you to take money out of your college savings and work extra hours, it is best to determine how much you want to go. Do you value it over other important goals you have for yourself? If the answer to that is yes, then work those extra hours! Life is short and if you want something bad enough to work hard for it then don’t hold back. If your answer is no, that’s okay too! Some financial goals must be achieved when you are earning a higher income or other important goals have been accomplished.

Setting specific, realistic, and relevant financial goals is key to actually accomplishing them. As teenagers, some of us are earning an allowance, some are working a part-time job, some have a small side hustle, and others must ask their parents for money. None of these are better than the other, but your personal situation will determine what your objectives are and how long it will take to achieve them. Whether your goal is to make $50 mowing lawns every weekend or to save up for a grad trip to Paris, setting them with this advice will make them achievable.

Sources

“How to Set Financial Goals: U.S. Bank.” How to Set Financial Goals | U.S. Bank, 17 Sept. 2020, www.usbank.com/wealth-management/financial-perspectives/financial-planning/how-to-set-financial-goals.html.

“SMART Goals.” MindTools, www.mindtools.com/a4wo118/smart-goals. Accessed 24 Sept. 2023.