- Date : 14/03/2022
- Read: 3 mins
We all wish we could undo some of our financial decisions in life. Many of us have learned that lesson the hard way. Financial lessons are important in life, but we learn them late. In light of the fact that our daughters aren't taught about real-life financial decision-making in school, you must teach them important financial lessons.
We all have some financial decisions in our life that we want to undo. Most of us have learned it over time through our mistakes. We learn the importance of financial lessons in life but a bit late. Since our daughters are not taught about money in schools, you must teach them necessary financial lessons.
The article will talk about the top 5 financial lessons that you can teach your daughter:
1.The value of money -
Your daughter cannot make the most of money unless she understands its importance. You have to ensure she understands the value of money early in life as it will help her build healthy financial habits once she starts earning. You can talk about the money with her once she turns 10 and not keep it taboo as it happens in most families. She can understand the value if you tell her how money is earned and that everything she sees new in the house costs money. Involve her in the family budgeting every month and give her allowances if she does a good job.
2.Difference between needs and wants -
She can value money in a better way if she understands the difference between needs and wants. As a parent, it is not that difficult to teach her. When your daughter asks for something, you ask her whether it is a need or a want - whether it is something important for her or she can do well even without it. Once she starts looking at things this way, it will become a habit and help her in the future.
3.Nurture her independence -
More than 50% of married women in India are dependent on their partners to make financial decisions. It hurts their independence in the long run. Hence, you should ensure your daughter is ready to make her own financial decisions before she starts earning. To nurture her financial independence, you have to ensure you involve your daughter in the family finances - talk about the taxes, financial planning, financial goals, etc. Talk openly about money with her so she feels comfortable talking about it with her friends and partner in the future.
4.Push her to financial careers -
In India and other countries, financial services are male-dominated. However, you can bring about the change. Once you ensure your daughter understands the basics of finance early in life, she can take in a career like financial analyst, investment banker, Certified Financial Planners, etc.
You can introduce her to the stock market as a game, and most people end up liking it - it is fascinating. With all the exposure around money, personal finance, and stocks, you can surely build interest in her for a career in financial services.
Also Read: How to Turn Stock Market Volatility Into An Investment Opportunity?
5.Inform her of the red flag -
Once you introduce her to the financial world, it is of utmost importance that you inform her of red flags. There is a dark side to the financial world. For example, she can use a credit card to her advantage, but if she is not careful, she can get into credit card debt. Similarly, losing money in the stock market is easy. Hence, it is your responsibility to make her aware of red flags and educate her not to fall for them.
Also Read: Best Credit Management Apps
These are some of the best lessons you can gift your daughter. It will help her in ways you may not even visualize right now.
We all have some financial decisions in our life that we want to undo. Most of us have learned it over time through our mistakes. We learn the importance of financial lessons in life but a bit late. Since our daughters are not taught about money in schools, you must teach them necessary financial lessons.
The article will talk about the top 5 financial lessons that you can teach your daughter:
1.The value of money -
Your daughter cannot make the most of money unless she understands its importance. You have to ensure she understands the value of money early in life as it will help her build healthy financial habits once she starts earning. You can talk about the money with her once she turns 10 and not keep it taboo as it happens in most families. She can understand the value if you tell her how money is earned and that everything she sees new in the house costs money. Involve her in the family budgeting every month and give her allowances if she does a good job.
2.Difference between needs and wants -
She can value money in a better way if she understands the difference between needs and wants. As a parent, it is not that difficult to teach her. When your daughter asks for something, you ask her whether it is a need or a want - whether it is something important for her or she can do well even without it. Once she starts looking at things this way, it will become a habit and help her in the future.
3.Nurture her independence -
More than 50% of married women in India are dependent on their partners to make financial decisions. It hurts their independence in the long run. Hence, you should ensure your daughter is ready to make her own financial decisions before she starts earning. To nurture her financial independence, you have to ensure you involve your daughter in the family finances - talk about the taxes, financial planning, financial goals, etc. Talk openly about money with her so she feels comfortable talking about it with her friends and partner in the future.
4.Push her to financial careers -
In India and other countries, financial services are male-dominated. However, you can bring about the change. Once you ensure your daughter understands the basics of finance early in life, she can take in a career like financial analyst, investment banker, Certified Financial Planners, etc.
You can introduce her to the stock market as a game, and most people end up liking it - it is fascinating. With all the exposure around money, personal finance, and stocks, you can surely build interest in her for a career in financial services.
Also Read: How to Turn Stock Market Volatility Into An Investment Opportunity?
5.Inform her of the red flag -
Once you introduce her to the financial world, it is of utmost importance that you inform her of red flags. There is a dark side to the financial world. For example, she can use a credit card to her advantage, but if she is not careful, she can get into credit card debt. Similarly, losing money in the stock market is easy. Hence, it is your responsibility to make her aware of red flags and educate her not to fall for them.
Also Read: Best Credit Management Apps
These are some of the best lessons you can gift your daughter. It will help her in ways you may not even visualize right now.
