This is the age of women empowerment. It is now a myth that men are better than women in financial matters. So, the greatest gift you can give to your little daughter is to introduce her to financial matters by talking about it, and in turn, help her to become a financially responsible person. Go through this article to know how you can make your daughter a financially responsible person.
- Involve her in basic financial matters - From an young age, teach your daughter the basic financial activities such as, how to write a check, how to calculate interest after you've borrowed money, etc. Also, involve her while planning a family budget. All these will create the interest of learning financial matters and also help her understand what financial management is all about.
- Teach her the concept of saving money - To teach the concept of saving money, you can give a monthly allowance to your daughter and offer her to give something extra if she can save about 10% of the given amount. This will initiate the concept that she needs to save at least 10% of her income, which will help her later in life. You can also open a savings account in a bank in her name, so that she knows she has a separate bank account of her own.
- Introduce the concept of investing - She should learn that by only saving, money will not grow; for that, she needs to invest for better returns in the future. Once your daughter learns the basic concepts, you can ask her to look at the advertisements and choose a company where she would like to invest money. It may be a TV channel that features her favorite program. Then, invest a nominal amount such as, $100 or $200 in that company. This will help you teach your daughter about the stock market and how stocks are bought and sold. This will also create her interest in watching financial news and analyzing the stocks all by herself.
- Discuss with her about different career options - You should teach your daughter to be financially independent and so, discuss various career options with her. This will help her choose the major subjects so that she can pursue her dream. While talking about career opportunities, discuss about the difference between white-collar and blue-collar jobs and the lifestyle she can expect from each profession.
- Talk to your daughter about financial aspects of marriage - When your daughter is grown-up,she should know the financial implications of getting married. She should learn how to choose the right partner and how to share personal and financial life with her partner. Your daughter needs to learn how to talk about money matters with her partner and how to make important financial decisions in life. It is also necessary to teach the financial implications and responsibilities involved in raising a child.
It is always better to involve your daughter when you make financial decisions. When she is grown up, talk to her why you're obtaining a credit card over others or how you had decided to take out the mortgage loan as per your choice. Examples are always better to learn the concepts. So, this will help her understand the financial concepts easily and she can make most appropriate decisions throughout her life.