FLIP: SETTING FINANCIAL GOALS
Why is goal-setting important?
A survey published by Rest Industry Super
in May 2014 sounds loud alarms for 13-18 year olds. 1000 people aged 35-55 revealed their three biggest financial regrets:
Getting a credit card
Not sticking to budgets
Failing to start saving early
In fact, more than half the people quizzed would tell their younger self to start saving early, and one in three would invest more money.
“Establishing good saving habits early in life is crucial to achieving your financial goals, whether they be short-term, like affording an overseas trip, or long-term, like ensuring a comfortable retirement." said Rest CEO Damian Hill.
Establishing good habits
Many of our students are now earning substantial wages in part-time employment, but without good savings habits, are they getting as much out of their money as they could be? Some bad habits common in young people include:
Overspending on instant consumables
Not having (or not sticking to) a budget
Relying on credit and thus increasing debt
Not putting money aside for a rainy day
The clear message is that savings should be a mandatory component of every budget.
Starting to save
An easy, workable strategy to get started with saving is to apply the ‘pay yourself first’ principal (from The Richest Man in Babylon
). The trick is to always put aside 10% of all money earned or received (even a birthday gift or a tax return) regardless of the amount.
Having a financial plan is an important part of learning to save, which is explored in Module 1: Goal Setting (fully revised and updated earlier this year) and in the teacher notes for this FLIP. The FLIP student worksheet focuses on compound interest, and is relevant to the following curriculum:
Economics & Business
Access your complete Goal Setting teacher resource, Module 1: Goal Setting by logging in. Not a member? Sign up here.
Open Access Resources
Dig deeper into the benefits of saving with these free FLIP activities and worksheets which investigate compound interest. Teacher notes and solutions are included.