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WalletPrep worksheet · Money basics

How do you set financial goals you can actually reach?

Name ____________________ Date __________

Key ideas

  1. A goal has an amount and a date. "Save more" is a wish. "Save $3,600 by next June" is a goal you can plan around and check.
  2. Divide to get your monthly number. Amount still needed ÷ months left = what to save each month. In the example, $3,600 ÷ 18 = $200.
  3. Work on one or two goals at once. A starter emergency fund usually comes first. Add one more goal you care about, then start the next when one finishes.

Vocabulary

SMART goal
A goal that is specific, measurable, achievable, relevant and time bound, so you can turn it into a monthly plan.
Emergency fund
Cash set aside only for surprises like a job loss, a car repair or a medical bill. A common goal is 3 to 6 months of essential costs.
Down payment
The cash you pay toward a home's price yourself at closing. A mortgage covers the rest.
Stock
A small piece of ownership in a company. Its price rises and falls with how investors value the business.
Employer match
Money your employer adds to your retirement plan when you contribute, up to a set percentage of your pay.
401(k)
A retirement savings plan offered through an employer. Money comes straight from your paycheck, often with an employer match.

Work it out

Ana is a dental assistant who wants $4,500 for a used car down payment in 18 months. She already has $900 saved toward it.

  1. Goal amount
  2. Already saved
  3. Still to save
  4. Months until the date
  5. Monthly transfer
  6. Save each month

Check yourself

  1. Which of these is a goal rather than a wish?

    • A. Save more money this year
    • B. Save $1,200 for a trip by next August
    • C. Be better with money
    • D. Spend less on food

  2. You need $2,400 for a goal, have $600 saved and 12 months left. How much should you save each month?

    • A. $100
    • B. $200
    • C. $150
    • D. $250

  3. Where should money for a goal 1 year away usually go?

    • A. Individual stocks
    • B. A broad stock index fund
    • C. Cryptocurrency
    • D. An insured savings account

Your turn

Write one goal as a sentence with an amount and a date. Subtract what you have, divide by the months left, and schedule that monthly transfer to a savings account named after the goal.

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Answer key

How do you set financial goals you can actually reach?

Work it out

  1. Goal amount$4,500
  2. Already saved− $900
  3. Still to save= $3,600
  4. Months until the date18
  5. Monthly transfer$200
  6. Save each month= $200
  1. Ana subtracts what she has from the goal: $4,500 − $900 = $3,600 still to save.
  2. She divides by the months left: $3,600 ÷ 18 = $200 a month. That fits after her bills, so the goal is achievable.
  3. She schedules $200 to a "Car fund" account the day after payday. At an example 4% a year, she also earns about $104 of interest.

Check yourself

  1. B. Save $1,200 for a trip by next August It has a dollar amount, a purpose and a date, so you can work out a monthly number and check your progress.
  2. C. $150 $2,400 − $600 = $1,800 still to save. $1,800 ÷ 12 = $150 a month.
  3. D. An insured savings account Money you need soon should not be able to drop in value. An insured savings account keeps the balance safe and still pays some interest.