Financial Literacy
Introduction to Money & Goals
Lesson
1
Why This Lesson Matters
If you had LKR 1,000 in your hand right now, what would you do with it? You could buy short eats for the week, save it for your upcoming tuition fees, or put it toward that bicycle you’ve been dreaming of. The amount of money is the same, but the outcome is entirely different based on your goal. This simple choice is the foundation of financial literacy. Without clear goals, money has a habit of disappearing. With goals, money becomes a powerful tool for building the life you want.
Life in Sri Lanka teaches this lesson every day. Prices move. Bus fares change. Data and food costs rise. When money is handled without a plan, it slips away in small steps. When money is guided by a goal, even small amounts begin to build. A clear plan turns stress into calm because you know what each rupee must do.
Think about the last month. Did you ever feel surprised by how quickly cash finished? That feeling comes from not telling your money where to go. This lesson gives you a simple map. You will write your goals, give your money a job, and start making decisions that support your future.
“Money without a plan is money wasted.”
Step 1: Understand What Money Really Is
Before we talk about saving or budgeting, remember this: money is a tool—not the final goal. Used well, it brings stability and choice. It helps you live with dignity (less borrowing), create opportunity (education, transport, tools), and enjoy freedom (the confidence to choose your future). The purpose of money is to serve your life, not to control it.
For some students, money means staying in school without missing classes for fees. For others, it means buying a secondhand laptop or scooter to reach more jobs. For a mother, it may mean a small sewing machine to start paid mending. Your meaning may be different, but the rule is the same: when you treat money as a tool, you take back control.
Start by writing your personal “why.” Why do you need money? What would change if you managed it better? A strong “why” keeps you going when saving feels slow. It also helps you explain your decisions to others—family, friends, even yourself—when you choose needs over wants.
Money also carries emotions. Many people feel shame, fear, or pressure around money. That is normal. The way out is simple and kind: be honest with yourself, start small, and keep going. Money responds to discipline the way plants respond to water—slowly, then suddenly.
Step 2: Give Your Money a Job with SMART Goals
Knowing why money matters is not enough. You must give it a job. “I want to save more” is too fuzzy. SMART goals turn a wish into a plan you can follow. This framework is used around the world because it is simple and it works. We adapt it for your situation.
Specific: State exactly what the money is for (e.g., exam fees, a bicycle for work, a sewing machine).
Measurable: Set an amount you can count (e.g., LKR 5,000; LKR 50,000).
Achievable: Fit the goal to your real income (e.g., LKR 500/month, not LKR 50,000/month).
Relevant: Choose goals that matter now (e.g., tuition before trend items).
Time-bound: Give a deadline (e.g., in 3 months; by the New Year).
SMART goals make daily choices easier. When a friend invites you for an extra treat, you can check your goal and decide with confidence. When you receive a small gift of cash, you can split it on purpose—some for the goal, some for daily needs. You stop asking, “Where did my money go?” and start saying, “Here is where my money went.”
To make SMART goals real, connect them to your everyday life. If your bus pass costs LKR 100 a day and your goal is LKR 3,000 in three months, plan how many days of small savings will get you there. If you want LKR 50,000 in two years for a motorbike down payment, calculate how much per month you need if you also add festival gifts and small bonuses. A plan that fits your life is a plan you can keep.
The Golden Rule
Don’t chase money. Use money to chase your goals.
Your Money’s Path: Without a Plan vs. With a Plan
Without a Plan | With a SMART Plan |
You spend without direction | You save with a clear purpose |
Money seems to disappear | Money builds toward your dreams |
You feel stuck and stressed | You see steady, measurable progress |
Friends decide your spending | Your goals guide your choices |
Exercises: Your Turn to Plan
Exercise 1 — Write Your First SMART Goals. Create three goals that match your life: one short-term (within 3 months), one medium-term (within 2 years), and one long-term (within 5 years). Keep the words simple and the numbers real. Example goals could include: “Save LKR 3,000 for term test fees,” “Save LKR 50,000 for a motorbike down payment,” and “Save LKR 500,000 for a diploma.” Use a notebook you can keep and update.
Exercise 2 — Break Each Goal into a Monthly Amount. Take each goal and divide it by the time you have. If your short-term goal is LKR 3,000 in 3 months, that is LKR 1,000 per month or about LKR 35 per day. If the medium-term goal is LKR 50,000 in 24 months, that is just over LKR 2,000 per month. Write these monthly targets under each goal so you always know the next step.
Exercise 3 — Needs vs. Wants. Look at your list and mark each goal as a need or a want. Needs are essential for life or for your future (fees, books, tools). Wants are nice to have (gadgets, fashion items). If most of your goals are wants, rewrite at least one goal to serve a need first. This builds strength in your plan.
Exercise 4 — Name Your First Saving Place. Decide where each goal’s money will sit. You could use a labeled envelope, a small jar, a bank account, or a mobile wallet. The key is to separate goal money from daily money so it does not get mixed and spent by accident.
Exercise 5 — Write a Simple Promise. On a small card, write one sentence: “I will save LKR 100 every day for 30 days toward my short-term goal.” Sign it and date it. Keep it where you can see it—on a mirror, next to your study table, or inside your wallet.
Quick Win
Tonight, move your first amount—LKR 100—into your chosen saving place and write it down. One action begins the habit.
Common Roadblocks (and Simple Fixes)
Sometimes goals fail because life happens. That is normal. What matters is how you respond. If income is low this week, save a smaller amount but keep the habit alive. If a family event forces extra spending, adjust the timeline rather than abandoning the goal. If friends pressure you to spend, tell them your goal and invite them to support you—true friends will understand.
If you forget to save, set a daily reminder on your phone or tie the habit to something you already do: save right after dinner, or when you come home from class. If cash in hand tempts you, use a bank or mobile wallet so the money is a little harder to touch. If you feel stuck, read your “why” again and picture the moment you reach the goal—the exam paid, the tool bought, the first day at training. That picture is power.
Keeping Yourself Motivated
Momentum comes from small wins. Track your progress on paper. Draw a simple ladder or thermometer and color it in as you save. Celebrate honest effort, not only big deposits. Share updates with one trusted person in your home. When people know your plan, they can help you stay on track and may even add a little to your goal during festivals or birthdays.
You can also connect goals with earning. If you already learned about active and passive income, think of one tiny task each week that earns LKR 200–400 for your goal. When earning and saving work together, progress becomes faster and more fun. You begin to see yourself not just as a saver, but as a planner and builder of your future.
“Goals turn dreams into plans. Plans turn into reality.”
Your First Step is Complete
By writing your goals and giving your money a job, you have done what most people never do. You chose direction over drift. From today, every rupee has a purpose. Keep your goals where you can see them, review them weekly, and protect them from impulse spending.
Remember these key ideas: money is a tool that serves your life; SMART goals give your money direction; needs come before wants; and small, steady actions beat big, irregular efforts. Even LKR 100 a day can build a strong habit and a real result over time. When you feel discouraged, read your “why,” look at your progress chart, and take the next small step.
Start now: write your three goals, break them into monthly amounts, set your saving place, and move the first LKR 100. Tell one family member your plan for accountability. This is how financial freedom begins—quietly, clearly, and with discipline.
Next, in Lesson 2: Understanding Income – Active & Passive, you’ll learn why one income stream is risky—and how to start creating more.
Word-mix analysis (by format)
I analyzed the lesson’s word mix by paragraphs, bullets, and tables (excluding headings, quotes, and box labels/content like “Golden Rule”/“Quick Win”). Results:
Type | Words | Percent |
Paragraphs | 1362 | 92.2% |
Bullets | 68 | 4.6% |
Tables | 47 | 3.2% |
TOTAL | 1477 | 100.0% |
If you’d like the bullets to be closer to ~20% (per the 60/20/10/10 target), I can add a compact bullet checklist under SMART and a brief “Practical Reminders” list at the end while keeping the language simple.