Financial planning is even for girls! Your daughter needs equal money management skills as your son. Do not deprive her of money management lessons from early life. Help her gain confidence in financial matters. Here are some simple lessons to teach your daughters about money management.
Work For Your Money: Daughters are to be taught that money is something for which one has to work. This healthy work ethic can be built from a very early age by exposing girls to money earning opportunities through certain tasks. The tasks could be as simple as paying the electricity bill or getting groceries within the budget from the nearby store. These tasks help children understand how much they can spend and save.
Enjoy Your Effort Not The Result: Most importantly, enjoying the effort is essential than the result. If you are praising your daughters for their intelligence, stop now. It may undermine their performance and self-motivation capacity to work. Rather, recognize the effort and hard work they put into a task. This way, you can help them develop a stronger work ethic and motivation.
Negotiation Is Much Fun: Negotiating is the most powerful money skill. Girls should not hesitate to ask for what they want and deserve. This most important lesson will pay big time in the future.
Manage Money Yourself: Girls should not wait for men to manage their money. They should own the responsibility for their money. Teach them basics of money like not spending more than earnings; using cash more than cards to avoid overspending and impulse spending; saving minimum or more than 50% of the earnings. Make them aware of the importance of an emergency fund to deal with unexpected or unplanned expenses to avoid debts.
Be Patient With Money Matters: It is fun to spend. Shopping is probably among the girls’ best hobbies. But, daughters should know that earning is not as simple as spending. It is important to be patient and thoughtful while spending every penny. The earlier the savings begin, the better would be the financial future. Also, patience with investments is important to give enough time to grow with time.
In conclusion, do not miss an opportunity to teach your daughter about money. Also, be careful about the unspoken messages you impart. Practice the best money behaviors and help your daughter follow those practices. Put your finances in order with expert advice from fiduciary, like ArthaYantra – world’s only full-service Robo-advisor.