About the Authors
James McKenna and Jeannine Glista, along with Erren Gottlieb and Jamie Hammond, are cocreators of Biz Kid$, a national financial education initiative based on the Emmy Awardwinning, nationally syndicated public TV series of the same name. James, Erren, and Jamie all live and save their money in Seattle, WA. Jeannine lives and saves her money in Nevada City, CA.
Matt Fontaine is a writer who lives, and saves his money, on Vachon Island, WA. You can find him at thinksmartmouth.com .
The Biz Kid$ series has been seen by more than 15 million people worldwide since its premiere in 2008. It is broadcast worldwide and accessible through numerous outlets. The series is co-created and coexecutive-produced by the creators of Bill Nye the Science Guy. It has also been approved as a financial education recommended resource in 16 states. Biz Kid$ is complemented by a resource-rich website with free lesson plans, online games, and community activities at bizkids.com .
Chapter 2:
Set Financial Goals
![What kind of life do you want to live Do you want to travel help the poor - photo 1](/uploads/posts/book/100522/image/million_cheque_OPEN.jpg)
What kind of life do you want to live? Do you want to travel, help the poor, race dirt bikes, be a tech , design dresses, navigate space, become a pro skateboarder, all of the above?
Youll have a better chance of achieving the life you want if you have money. And that means youll need a plan, with financial goals.
A plan with financial goals will keep you from being adrift in an ocean of money. Its like charting a course for the Island of Financial Freedom. Without a plan and goals, you might end up on the rocks and never have enough money, particularly when you need it most.
Goal setting is not a one-time event. Some people have hourly, daily, weekly, monthly, quarterly, semi-yearly, yearly, 5-year, 10-year, 20-year, and even lifetime goals. For now, lets think about setting these three goals: .
Money Moment
![One way to help you with financial goals is to have separate accounts for - photo 2](/uploads/posts/book/100522/image/wave.jpg)
![One way to help you with financial goals is to have separate accounts for - photo 3](/uploads/posts/book/100522/image/coins.jpg)
One way to help you with financial goals is to have separate accounts for different goals. You could have a .
Short-term Goals
(from Now to 1 Year)
Maybe you have a goal of saving enough money to go to that show next week. Or you want to buy a new phone, a longboard, or supplies to start a business. Maybe you simply want to get started saving toward $1 million. Those probably all fall under the category of short-term goals.
So how do you reach your short-term goal? Figure out the cost of the goal, then divide by the amount of time you have to reach it.
Say you want some Super-Cool Thingy. The Super-Cool Thingy is $100 and you want to have it by next summer, which is 10 months away. That means you need to save $10 a month to reach your short-term goal of having enough money to buy the Super-Cool Thingy. Can you do it? If not, modify the goal a little. Either you need to get more money, spend less, or do some combination of the two. Another option would be to give yourself a little more time to save.
Medium-term Goals
(1 to 10 Years)
Maybe you want to buy a car, travel, save for college, or move out of the house by the time youre 20. These are probably more medium-term goals. Again, figure out how much money you need to reach the goal and divide by the time you have to reach it. Lets say a trip to Europe costs $5,000 and you want to do it in three years. Divide $5,000 by 36 months and you get about $138.89 a month. Can you set a short-term goal to save $138.89 a month, toward a medium-term goal of saving $5,000 in three years? If not, then modify the goal. Maybe plan a cheaper trip, go later, or figure out a way to bring in more money.
Long-term Goals
(Over 10 Years)
These goals could be 10, 20, 30, 40 years, and beyond. That may seem like a long way out, but millions of people before you have had that same thought, then suddenly realized they should have started thinking about long-term goals when they were 11 years old! Want to retire early, travel the world, buy a house, have kids or just lots of dogs? Sounds like youre going to need a million dollars to reach some of those goals, so these are probably long-term and ultra-long-term goals.
Lets say you want to have $1 million in 40 years. Divide $1,000,000 by 40 and youll get $25,000 per year. We know what youre thinking. Im just 11 years old. Im never going to be able to save that much! The good news is you dont have to actually save $25,000 per year for 40 years to get to $1 million. Theres a trick well share later where your money starts making money for you. Dont skip ahead!
![Write Them Down Its critical that your goals are clear and spell out exactly - photo 4](/uploads/posts/book/100522/image/6.jpg)
Write Them Down!
Its critical that your goals are clear and spell out exactly what you want. Write them down, type them up, or text them to yourself, and definitely jot them down in in this book. Hang them on the fridge, or post them someplace to look at every day. Youre more likely to achieve them if theyre written down and right in front of your face. And dont be afraid to revise your goals. Theyll change over time.
![Keep your goals written somewhere that youll see every day Turning Jewelry - photo 5](/uploads/posts/book/100522/image/7.jpg)
Keep your goals written somewhere that youll see every day.
Turning Jewelry into a Dirt Bike
![Christian had a passion for dirt-biking and wanted a new bike His goal was to - photo 6](/uploads/posts/book/100522/image/wave.jpg)
![Christian had a passion for dirt-biking and wanted a new bike His goal was to - photo 7](/uploads/posts/book/100522/image/diamond.jpg)
Christian had a passion for dirt-biking and wanted a new bike. His goal was to buy one within a year, which meant saving $50 per month for 12 months. So Christian made jewelry and sold it to friends and family, and also set up a stand at a local pizza restaurant where he sold his products on the weekends. At first Christians friends made fun of him... until he showered them in mud while ripping past them on his brand-new bike!
Epic Win
![Jim Carrey one of the highest paid actors of all time has earned millions for - photo 8](/uploads/posts/book/100522/image/wave.jpg)
![Jim Carrey one of the highest paid actors of all time has earned millions for - photo 9](/uploads/posts/book/100522/image/million_cheque_OPEN.jpg)
Jim Carrey, one of the highest paid actors of all time, has earned millions for his movies. It wasnt always that way, however. In 1985, as a struggling actor trying to make it in Hollywood, Carrey drove to the top of the Hollywood Hills. While dreaming of his future, he wrote himself a check for $10 million, dated it Thanksgiving 1995, added the notation for acting services rendered, and carried it in his wallet from that day forth.
The rest, as they say, is history. Carreys optimism and tenacity eventually paid off, and by 1995, after several huge box-office hits, his asking price had risen to $20 million per picture. Writing down that goal of being able to pay himself $10 million helped focus Carreys mental state for his eventual success.