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Personal Finance

Your daughter will thank you for teaching her these 5 financial lessons

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Mother’s Day comes this year against a backdrop of increasing financial hardship for women and girls. COVID-19 has kicked millions of women, especially mothers of young children, out of the workforce, resulting in disproportionate loss of female wealth and some of the highest female unemployment rates in the 21st century. I saw this firsthand in my work helping young people at Albert, a personal finance app that clients (who are biased in their 20s and women) can text me and other geniuses for advice. financial. Since the start of the pandemic, I have received frequent messages from young women who are going through unemployment or underemployment while simultaneously battling credit card debt, student loans, and daily costs, such as rent. and the grocery store.

Mother figures are often our first teachers; they are the ones who prepare us for academic success, friendships and our professional lives. Because this is my first Mother’s Day as a future mom, I found myself thinking a lot about the many life lessons my mom taught my sister and me, especially when it comes to saving, spending and budgeting.

While it’s important to teach all kids about money, I think it’s especially critical to give our daughters the financial skills and know-how they’ll need to overcome financial hurdles later in the day. life. For everyone with a young woman in their life, here are five reasons to remind you why every teen and pre-teen should be educated about personal finances, coupled with concrete strategies to prepare them for a financially healthy adulthood.

Learning the value of money early on can help girls develop healthy financial habits later in life. I started learning about personal finance at the age of 10, thanks to my parents, both immigrants who had to learn all about personal finance on their own. They took a hands-on, ‘real-world’ approach to teaching my sister and I how to manage our money (allowance) from our jobs (household chores).

Have your daughter use the math skills she learns in school to set a monthly budget based on allowances, part-time jobs, and shopping goals. There are now several apps that help kids get engaged and learn about money management – a popular few are Busy Kid and Savings Spree. Investment or savings challenges, such as the Animal Crossing Market Stalk, can be another effective way to practice these skills. Real-world activities can help spark an interest in personal finance from a young age.

The reality is that 56% of married women rely on their husbands and partners to make important financial decisions, which can hurt them financially in the long run. After nearly a decade in asset management and entertainment finance, I began facilitating one-on-one coaching sessions for women who were going through life transitions, such as getting married and changing jobs, to help them overcome financial stress and become financially independent. I have worked with several professional and savvy women who were in a worse financial situation than they should have been because they relied on their spouses for money matters. I wish these women had the confidence to assert their independence in matters of personal finance, but independence is not something that only appears in adulthood – it is learned behavior.

How do we teach adolescents and pre-adolescents to value their financial independence?

  • If you are a mother or relative of a young girl, make sure she sees you taking an active role in family finances alongside the men in your household.
  • Now empower her to understand that women should not be left on the sidelines in these matters.
  • Talk openly about money so that she does the same with her friends and partner in the future.

If you teach her to understand personal finances and make her own decisions, she will maintain this independence and confidence as an adult.

Girls outperform boys in school, but they have not historically been encouraged to pursue careers in math and science as adults. There are many reasons for this, including gender discrimination in science, technology, engineering and math (STEM) fields, a lack of female mentors and role models in these fields, and a lack of female role models in these fields. misogynistic culture that describes math and science as inherently masculine skills.

Many education experts believe that the key to recruiting and retaining women and other under-represented groups in STEM is to provide them with practical, concrete applications for math and science skills while they are. more girls. What could be more practical than money? I know from personal experience that building teenage girls’ enthusiasm for saving, budgeting, and investing can also increase their engagement in math and economics classes.

Financial services have long been a male dominated field, but it shouldn’t remain so! Your preteen daughter could become a fintech data scientist, trader, investment banker, financial analyst, CFP®, or economist. It is essential to sow the seeds of interest now so that it follows AP Economics later.

The first way I found out about investing and started to get interested was through a stock investing game planned by my father. He told my sister and I to choose a company that we liked, then he explained that we could own that company by buying a share. I wasn’t even in high school yet, but I was fascinated by how stock prices constantly changed throughout the day. I have been fortunate enough to work in some of the best financial services companies in the world, and my father’s stock market game really piqued my interest in investing.

One of the most common financial difficulties that I have noticed in the women I counsel is credit card debt. And because there are so many factors that put women at a money disadvantage – like the wage gap and the pink tax – it usually takes them longer to pay off that debt. It doesn’t help that women tend to earn less money than men, and that we often save less, because we tend to incur higher expenses, especially health expenses. The system is rigged against women saving and paying off debt, which is why equipping your daughters with the skills they need to thrive in a gender economy is essential.

This Mother’s Day is unlike any other, and I urge you to prioritize your daughter’s financial education right now – it will bring you closer, and one day she will thank you for it!

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