Whether you have $100,000 in the bank or next to nothing, managing money boils down to one thing: understanding your choices. This lesson will help you understand how to think about your choices, make a plan, and work your plan. That way, no matter what life throws at you, you’ll have options.
In this lesson, you will learn about:
- What money management is.
- How goals connect to money management.
- Opportunity costs by making a list of pros and cons.
- The difference between banks and credit unions.
- How to develop a net-worth statement.
Setting financial goals allows you to realistically plan for future purchases without exceeding your budget. Follow some of these tips to reach your short- or long-term financial goals:
- Write down the financial goals you want to reach. Display your goals in an area where you will see them everyday. Writing your goals on a mirror, setting them as your wallpaper on your computer screen, or posting them on your bedroom door are all great ways to ensure that you will see them everyday.
- Start with specific short-term goals. This is something you want to do in the near future.
- Designate “no spend days”.
- Make sure your goals are clear and reachable, each one should be S.M.A.R.T.
Tools for Achieving Your Goals
Now that you have established your financial goals, here are tools that can help you achieve them:
- Regardless of your financial goal, activate your SALT Membership to gain access to online money management tools and lessons that will help you create a saving plan to reach your financial goals. You can also set financial goals through your SALT account, and you will be guided to certain resources and lessons to help you reach these goals.
- Want to find money for school? Utilize the scholarship search engine or our scholarship bulletin board for current scholarship opportunities. We encourage you to also check with your department regularly for scholarship or employment opportunities.
- Want help with your budget? Use this interactive budgeting calculator to help you manage your income and expenses.
Short-Term vs. Long-Term Goals
Short-term goals could be figuring out student loan repayment or committing to only purchasing three coffee drinks a week rather than five to save on money.
Long-term goals might consist of saving money for a payment on a new car or a big vacation you are going on in a year or two.