By Michelle Glassburn
Q. I’m worried that my daughter will make the same financial mistakes I have. What can I do to help her learn to be money smart?
A. Reports suggest that girls lag behind boys in competency when it comes to financial topics. According to a recent study by the University of Nebraska, there is a significant gender gap in performance between teens. Girls underperformed in 20 of the 23 topic areas – with the greatest gap in investing concepts.
Clearly, we need to do more to boost girlsʼ knowledge and confidence when it comes to money. Start by resisting the urge to lend your daughter money – instead, have her save up to make those purchases. And, be sure to involve her in household finances by discussing expenses, plans for saving and investing, and choices around giving. Encourage her to include classes in her schedule and read books that incorporate personal finance topics. “The Wealthy Barber” by David Chilton is chock full of wise money advice presented in an interesting, conversational tone.
To boost their financial savvy, encourage kids to participate in extracurricular activities that incorporate elements of personal finance. Girl Scouts can earn badges in more than a dozen areas that involve personal finance. Teens can participate in school clubs and programs like the Millionaireʼs Club, Future Business Leaders of America, and DECA, the international consortium of youth clubs geared towards business and marketing, which prepares young people for futures in various aspects of business. Check with your school to find out the opportunities that are available.
Remember, most of all, the model you set for your daughter has the most impact on her financial future. As Eleanor Roosevelt said, “You can never really live anyone elseʼs life, not even your childʼs. The influence you exert is through your own life and what youʼve become yourself.”
