Lesson 4: Budgeting for Short and Long Term Goals
In the last video, we talked about putting money into savings. As your savings account begins to grow, you can begin deciding what you want to do with that money. It is a good idea to set some short-term and long-term savings goals. A short-term goal could be something like buying a new bike, which may take a few months to buy. A long-term goal could be something like saving for your first car, which may take several years. Think of how cool it would be to be able to pay cash for your own car when you are 16.
As you get older, there will be other things you need to save money for, such as buying a house and saving for retirement. Learning how to save money now will make those goals easier to reach in the future.