As a parent of three kids, I remember hauling the detritus of consumer gifts to the curb after every holiday and birthday – plastic packaging, wrapping paper, dead batteries and a rash of trash.  The thrill of opening gifts faded quickly and what were left were waste and the feeling that there must be a better way to celebrate our children’s future.

To alleviate this ritual year after year, we as a family adopted a plan of long term goal setting as an alternative to plastic overload.  I talked to my kids (ages 8, 6 and 3) about the things they really cared about.  My older son wanted guitar lessons, my middle boy wanted a new mountain bike and my daughter wanted a computer.  We all want to save for college and as a way to support how every family should give to others, we suggested each kid identified a charity to support.

These are longer-term goals – particularly saving for education, but they are consistent with providing long-term benefits.  Families need to set financial milestones to enable goals and part of the kids’ allowances, earnings and gifts go towards these goals.

Interestingly, we found that kids got engaged in the process of goal setting.  They bought into the goals we set and they enjoyed charting their progress over time.  They are learning – by doing – how money grows, how interest accumulates and how goals are achieved.  They still get toys, but a sane amount.  But they know they are working towards meaningful goals they care about.

Goal setting and financial education for children is imperative to our children’s future.  Every parent should be looking at teaching fiscal responsibility with the same importance as, say, math. 

This mindset will lead to a movement and a ...