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Personal Finance: Financial Decision Making

Curriculum

  • 8 Sections
  • 34 Lessons
  • 10 Weeks
Expand all sectionsCollapse all sections
  • Financial Decision Making
    5
    • 1.1
      The Role of Choice in Financial Decisions
    • 1.2
      Rational Decision-Making Process
    • 1.3
      Future Consequences of Financial Choices
    • 1.4
      Unintended Consequences
    • 1.5
      Unit 1 Quiz: Financial Decision Making
  • Earning Income
    4
    • 2.1
      Career Choices and Income
    • 2.2
      Forms of Compensation
    • 2.3
      Taxes and Deductions
    • 2.4
      Unit 2 Quiz: Earning Income
  • Buying Goods and Services
    4
    • 3.1
      Creating and Managing a Budget
    • 3.2
      Selecting Financial Institutions
    • 3.3
      Making Major Purchases
    • 3.4
      Unit 3 Quiz: Buying Goods and Services
  • Saving
    6
    • 4.1
      Setting Savings Goals
    • 4.2
      Interest and the Time Value of Money — Part 1
    • 4.3
      Interest and the Time Value of Money — Part 2
    • 4.4
      Savings Instruments
    • 4.5
      Retirement Planning
    • 4.6
      Unit 4 Quiz: Saving
  • Using Credit
    5
    • 5.1
      Understanding Credit and Credit Scores
    • 5.2
      Types of Credit and Debt
    • 5.3
      Managing and Avoiding Debt
    • 5.4
      Credit Rights and Responsibilities
    • 5.5
      Unit 5 Quiz: Using Credit
  • Protecting and Insuring
    3
    • 6.1
      Insurance Basics and Types
    • 6.2
      Identity Theft and Fraud Protection
    • 6.3
      Unit 6 Quiz: Protecting and Insuring
  • Financial Investing
    3
    • 7.1
      Investment Instruments
    • 7.2
      Risk and Return
    • 7.3
      Unit 7 Quiz: Financial Investing
  • Capstone & EOC Preparation
    4
    • 8.1
      Comprehensive Review
    • 8.2
      Financial Planning Capstone Project
    • 8.3
      EOC Assessment Preparation
    • 8.4
      Mock EOC Assessment

Setting Savings Goals

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Unit 4: Saving

Setting Savings Goals

🕐 12 min read
The Big Question

How can you set—and actually achieve—savings goals that make a real difference in your life?

A young person is intently writing in an open notebook on a clean desk

Imagine you’ve just started your first part-time job in Missouri. You want a safety cushion for emergencies, a better phone, and to start planning for your future. But every time you try to save, something comes up: pizza with friends, car trouble, or just forgetting to track your spending. Setting savings goals isn’t just about big dreams—it’s about building habits that protect you from real-life surprises and help you get what you want.

Meet Jordan, a 22-year-old delivery driver in St. Louis. After a car breakdown and a surprise cut in work hours, Jordan found themselves relying on credit cards for groceries and repairs. If Jordan had started an emergency fund just months earlier—even a small one—the story would have gone very differently. Learning how to set, track, and reach savings goals can make all the difference when life throws you a curveball.

💡 Did You Know?

Missouri’s minimum wage in 2024 is $12.30/hour. Even saving $10 per week adds up to $520 a year—enough to cover many emergencies!

Why Set Savings Goals?

A person standing calmly behind a stylized, transparent shield that is deflecting abstract symbols of unexpected expenses, such as a stylized storm cloud with a lightning bolt, a broken gear, and a ge

Savings goals give your money a purpose. Whether you want to buy a car, have backup for surprises, or go to college, setting realistic targets helps you stay focused—and makes it far more likely you’ll get there.

Short-Term Savings Goal

Money set aside for a specific, planned purchase or expense within the next year (for example, buying a laptop or going on a school trip).

A person is looking at a laptop screen displaying an abstract line graph that shows a clear upward trend, symbolizing increasing savings
Emergency Fund

Money saved specifically for unplanned, necessary expenses—like car repairs or medical bills—that you hope you never have to use.

Think of a time when you wished you had extra money set aside. What would have changed if you’d had even $100 saved?

Types of Savings Goals

  • Short-term: Under 1 year (e.g., new phone, prom, car repair fund)
  • Medium-term: 1–5 years (e.g., car down payment, college expenses)
  • Long-term: 5+ years (e.g., own apartment, first home, retirement savings)

In Missouri, many students set medium-term goals like saving for a used car ($3,000–$6,000) or their first semester at State Technical College (around $6,000 for tuition and fees).

Flashcard

What is a SMART savings goal?

Tap to reveal
Answer

A goal that is Specific, Measurable, Achievable, Relevant, and Time-bound—making it clear what you want, how much, and by when.

Flashcard

Give an example of a short-term savings goal for a Missouri high school student.

Tap to reveal
Answer

Saving $600 for a laptop within 8 months by putting aside $75 a month from a part-time job.

Flashcard

What are the three questions to ask before using your emergency fund?

Tap to reveal
Answer

1. Is it unexpected? 2. Is it necessary? 3. Is there any other way to handle this?

  • You can define the difference between a savings goal and an emergency fund.
  • You know how to write a SMART savings goal for yourself.

SMART Goals: Making Goals Stick

Vague goals don’t work. Instead of “I want to save money for college,” write: “I will save $4,000 for my first year at Missouri State University by saving $200 per month for 20 months, starting this month.”

⏱ 5 minutes
Activity: Write Your Own SMART Goal

Pick one financial goal and turn it into a SMART goal using the template below:

  1. Identify what you want to save for (specific).
  2. Decide how much you need (measurable).
  3. Check if your goal is realistic based on your income (achievable).
  4. Make sure it matters to you (relevant).
  5. Set your deadline (time-bound).
❌ Common Misconception

“If I don’t have a job, there’s no point in setting savings goals.”

✅ The Reality

You can set goals using projected income (like allowance, gifts, or a future job), and still build strong saving habits—even small amounts matter.

What’s one obstacle you face in saving money? How could a written goal help you overcome it?

Want to go deeper? Why do SMART goals work?

Research shows that writing specific, measurable goals makes you two to three times more likely to achieve them. When you set clear targets, your brain automatically starts to notice opportunities and solutions you’d otherwise miss. This makes even small savings habits stick—especially when you track your progress.

Emergency Funds: Your Financial Safety Net

An emergency fund protects you from life’s surprises—like car repairs, medical bills, or losing your job. Most experts recommend starting with a $500–$1,000 “starter” fund, then building up to cover 3–6 months of essential expenses.

Bankers in Missouri often see young adults fall into debt because their first flat tire or medical bill catches them off-guard. Even a small emergency fund can prevent big money problems later.

Myth or Fact?

Holiday shopping is a good reason to dip into your emergency fund.

Holiday shopping is a planned expense, not an unexpected emergency; use your emergency fund only for true surprises.

What would be the first thing you’d do if you lost your main source of income? How would an emergency fund change your options?

Where Should You Keep Your Savings?

Keep your emergency fund separate from your regular checking account—ideally in a savings account that’s easy to access in a true emergency, but not so easy that you’ll dip into it for a night out or online shopping.

Most Missouri banks and credit unions offer free savings accounts for students. Some even let you nickname your account, like “Emergency Fund” or “Car Down Payment,” to help you stay on track.

Tracking Progress: The 90-Day Savings Challenge

For this unit, you’ll participate in a 90-Day Savings Challenge. You’ll set two (or more) realistic savings goals, track your income and expenses weekly, and reflect on how your habits change over time. Every Monday, you’ll update your savings tracker and journal. At the end, you’ll present your results—including a visual aid showing your progress, such as a chart or graph.

  • Use the provided spreadsheet template to track income, expenses, and goal progress.
  • Complete weekly reflection journal entries—honesty is key!
  • Adjust your goals if life changes, but always focus on effort and learning, not just results.

“Learning the process matters more than the dollar amount saved.”

Key Takeaway

Setting clear, realistic savings goals—and tracking your progress—gives you more control over your money and your future.

Think back on your own saving experiences—successes or struggles. What do you hope to learn or change about your money habits during this challenge?

0 words Take your time — depth matters more than length
+50 XP

Which of the following best describes an emergency fund?

Review the “Emergency Funds: Your Financial Safety Net” section above to find the answer.
Key Takeaway

The process of tracking and reflecting on your savings—not just the final amount—builds lifelong financial habits.

SHIFT

The Shift

  • Real savings goals are specific, measurable, and achievable—even with small amounts.
  • Emergency funds protect you from the unexpected and keep you out of debt.
  • Tracking your progress and reflecting weekly helps you adjust, learn, and succeed.
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Unit 3 Quiz: Buying Goods and Services
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