How To Set (and Reach) Your First Financial Goal as a Teen

Whether you're saving for a concert or your first car, here's how to make your money goal happen

If you’re like most teens, chances are there’s something on your wishlist that feels out of reach—a new phone, gaming system, concert tickets, or even your first car. Paying for it on your own might seem impossible, but with the right plan, you can set a financial goal and actually achieve it.

Key Takeaways

A financial goal is simply a money target with a plan behind it.
SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
Breaking big goals into small steps keeps them realistic.
Tracking progress turns saving into something more motivating and rewarding.

Step 1: Pick a Goal That Matters to You

Your first financial goal should be something that excites you and feels meaningful. It might be a new pair of shoes, a musical instrument, or a summer class. Some teens focus on experiences like concert tickets, while others aim for tangible items. Both types of goals teach money management, but experiences can also create lasting memories.

Dave Martin, a curriculum developer at the nonprofit Next Gen Personal Finance, explained, “A goal gives your money a job, sets a deadline, and helps you make smart money decisions with a purpose. With a number and a date, you move from ‘I should save’ to a plan you can track and see progress.”

To make sure your goal is realistic, use the SMART system:

Specific: Define exactly what you want.
Measurable: Know the dollar amount you'll need.
Achievable: Make sure it's within your financial reach.
Relevant: Pick something that truly matters to you.
Time-bound: Set a clear deadline.

Tip

Start small. Successfully reaching your first goal is more important than the amount.

Step 2: Do the Math

Instead of focusing on the total amount, break your goal into smaller accounts. Studies suggest that framing savings in smaller amounts can make your goal feel more achievable and less overwhelming. Here’s how to calculate your plan:

Find the total cost. Research prices to determine the cost of your goal. Be sure to include extras like tax and shipping.
Subtract what you've already saved. This puts you a little closer to reaching your goal.
Choose a timeline. Determine when you want to reach your goal.
Calculate weekly or monthly savings. Divide the remaining cost by the number of weeks or months until your deadline.

For example, a $200 goal with an 8-week deadline will require you to save $25 per week.

If the math doesn’t add up, you can extend your timeline, choose a smaller goal, or find opportunities to earn extra money. Try using a budgeting app or online calculator to automatically break your goal into weekly or daily amounts.

Note

Want to keep helping your teen build strong financial habits? Check out the rest of our series: Developing Healthy Money Habits for Teens.

Step 3: Make a Plan and Stick to It

Knowing the numbers is one thing. Sticking to them is another. Many teens already earn money, but aren't set up to manage it. According to the U.S. Bureau of Labor Statistics, 22% of high school teens are employed. That means learning to set and reach financial goals is important now, not just after graduation.

Here are some strategies to stay on track:

Treat your savings like a bill. Pay yourself first before spending on anything else. If you get $40 from babysitting, put $10 into savings right away.
Keep your savings separate. Use a jar, savings app, or bank account to avoid dipping into your goal money. Choose a savings method that’s easy to access and doesn’t charge fees.
Identify income sources. Your regular allowance, babysitting, part-time job, or selling unused items can help you reach your target.
Build good habits. Avoid overspending by resisting peer pressure and giving yourself time to think before making impulse purchases.
Practice smart spending. Prioritize your needs over wants to avoid unnecessary spending. When you decide to make a purchase, look for discounts, coupons, or sales to save money.

Warning

Martin recommended avoiding vague or unrealistic targets, counting on money that isn't certain, underestimating total cost, mixing savings with everyday spending, starting too many goals at once, or letting friends or trends derail your goal.

Step 4: Track Your Progress

Tracking your savings makes the process more rewarding and motivation high. Research published by the American Psychological Association (APA) shows that monitoring your progress towards a goal increases the likelihood that you'll reach it. Try a printable savings tracker, your notes app, spreadsheet, or a dedicated savings app.

The APA's research also shows that people are more likely to reach their goals when they share progress with others rather than keeping it private. That could mean telling a parent or friend when you hit a milestone or posting an update in a group chat. The extra accountability makes it easier to stick with your plan.

Celebrate milestones along the way. For example, acknowledging when you're halfway to your goal or in the final stretch can keep the energy up. If you have a bigger goal, breaking it into smaller wins keeps the process more rewarding. Small celebrations, like a treat or fun outing, can reward your effort and keep your motivation high while you continue working toward larger goals.

Tip

If your goal is over $100, break it into smaller milestones.

Step 5: Reflect and Repeat

Reaching your goal is an achievement worth celebrating, but it's also a chance to learn. Ask yourself:

What worked well in my plan?
What challenges did I face?
What could I do differently next time?

Martin advises, "Keep the habit alive, even if you dial the amount way down, and stack easy wins first. Start with smaller goals to build confidence… Treat slipups as a cue to adjust the plan, not abandon it.”

The next goal could be something bigger or more long-term, like a laptop, camera, or even contributing to a college fund or car savings. Over time, setting and reaching financial goals becomes a lifelong skill that helps you stay out of debt and build financial independence.

What’s a Realistic Savings Goal for a Teen?

A realistic goal is one that you can reach with your current income and timeline. This might be something small to medium, like $50 to $200 for a new gadget, concert tickets, or gift shopping. The key is to start with a goal that feels achievable, so you can build confidence and create savings habits that you can use for bigger goals in the future.

How Can I Make Money as a Teen?

Common ways for teens to make money include part-time jobs, babysitting, dog walking, tutoring, yard work, or selling handmade crafts.

What Should I Do if I Lose Motivation?

If you lose motivation, try breaking your goal into smaller milestones so progress feels more immediate. Celebrate small wins, remind yourself why the goal matters, and consider sharing your progress with a friend or family member for accountability. Even if you can't save as much in one week, adjust your plan, don't abandon it.

Is It OK To Spend My Savings Before I Reach My Goal?

It's best to avoid spending your savings before reaching your goal because it can make the goal harder to achieve. If you need to use some of your savings for an emergency, adjust your plan and timeline, and get back on track as soon as possible.

What’s the Best Way To Save Money as a Beginner?

Start by paying yourself first. Set aside a portion of any money you earn before spending on anything else. Keep your savings separate and track your progress to stay motivated.

The Bottom Line

Start with a goal that excites you, break it into steps, and follow through. The amount doesn't matter as much as building the habit. Achieving your first financial goal not only gives you something you want but also builds the confidence and skills you'll use throughout life.