Turning Friday night plans into future financial goals
Ask a teen what their plans for the weekend are and they’ll most likely have an answer for you before you can even finish the question. Ask them what their plans for the future are and you’ll probably be met with crickets. Shifting their focus from “plans for this Friday” to “plans to buy a car in two years” for example, is a crucial step in teaching them responsible financial planning. This mindset shift not only empowers teens to make better decisions but also sets them on the path to financial independence.
A study conducted by Frontiers in Psychology found that students who use future-oriented thought have more positive outcomes in academic settings. Future-oriented thinking focuses on long-term benefits rather than short-term rewards. It’s a way to think about the future and see yourself in various scenarios. The study’s findings suggest that guiding students toward a future goal may increase their academic engagement and performance. Easier said than done, right? That’s where Money Path comes in.
Encouraging smart financial habits and long-term goal setting with Money Path
The Money Path app simplifies the process by providing essential support for teens to set long-term plans without feeling overwhelmed. They can make risk-free decisions and visualize estimated timelines based on their potential career choices, future starting salaries, and budgets. Money Path allows teens to experiment with different financial scenarios without real-world consequences. They can adjust variables like educational attainment, income, savings, and expenses to see how different choices impact their ability to reach their goals.
Money Path is not just a planning tool, it’s a financial education platform that helps teens develop smart financial habits like:
Budgeting.
Money Path helps teens create a realistic budget by laying out common monthly expense categories and providing suggested targets for what percentage of their income should be spent in each category.
Saving.
It encourages teens to set aside a portion of their income for savings, ensuring they have the funds they need to buy that car or put a down payment on a house. It then provides a visual representation of the estimated timeline for achieving their goals.
Investing.
The app introduces teens to the concept of saving for retirement and shows them how the power of compound interest can grow their money over time. This helps them understand the connection between their saving decisions and the time it takes to reach their retirement savings goal.
Getting teens into the mindset that there’s more to plan for than the weekend is critical in preparing them for a financially responsible future. With Money Path, students understand the connection between academic planning, life after high school, and financial well-being and they’re able to compare personalized paths side-by-side to show the impact of their decisions on long-term financial success. Learn more about how Money Path can promote future-oriented thinking, which can improve their academic performance and empower them with the financial capability to achieve their dreams!