I received very early lessons on managing finances and investment from my father. Read more on my about page. I feel teaching your children about money is an essential part of their education. Unfortunately it’s not taught in schools, so it’s your job as a parent to make them financially aware which should help them become a better at managing their finances. I had written about early financial lessons to your children and financial advice for young adults. This is a guest post from Patrick he runs the blog Daytodayfinance. Enjoy the post!
Are you parent of a teenage girl? If yes then you already know that your little girl is all set to take her own decisions and plan her future. All she needs is your guidance and advice. If you think that she is too young to manage finance then you are wrong. Teenage is the perfect time to explore all the fields of life and learn financial lessons.
Parents think that if they talk about finance with their little girl then it will not appear as an interesting topic for them. This is very difficult to talk about something uninteresting with your teenage daughter and make her realize the importance of it. Let check if we can make the thing bit interesting.
(Related – 5 Financial lessons I’d teach my child)
Teenage is the perfect time to talk about finance
Do you think that teenage is a very tender age to learn finance management or discus money. In the contrary it is the perfect age when you your girl can learn things easily and can be prepared for future endeavors. As we age, our capacity to learn new things gradually decreases. Your teenage daughter is all set to take money decisions and she will love to handle financial matters by her own.
There are few basic things about money management: such as savings, budgeting, and investing. Make the thing more interesting open a bank account for her and let her manage it. You can deposit her pocket-money directly to that account instead of giving it in her hand. This way she will learn banking formalities.
Involve her in family finance decisions
Share your past financial experience with her and tell her about few bad decisions you took so that she can learn from your mistakes. You can also play a budget game with her. It is not only about discussing things. You have to make them involved in financial decisions so that they feel that their decision is also important for you.
Let them plan the monthly budget of a specific month for you. Set a goal for her and help her to reach there. You need handle the situations very tenderly if you disagree in aspect. Give her a small present when she meet the target of monthly budget.
Don’t reject their expensive wishes directly
Sometimes teenage girls demands about costly gadgets or items. They might wish to do a certain hair treatment or go to an expensive beauty salon. It is very natural and you need not worry about it. Ask them to save a certain amount of money to fulfill their wishes.
When they have saved the certain amount of money you can provide the rest of it. This way they will understand the value of savings and will be able to develop a habit to save money. This way need not to break their heart by rejecting their wish.
Credit cards are hot favorite of new generation. You teenage girl is almost near the age when she can apply for a credit card. So she needs to know how a credit cards works. Tell her about all the technicalities before you let her use any credit cards. You can give her credit card to spend money and monitor if she is doing the things right.
Have patience if she makes any mistake. If you show that your are dissatisfied with any of their decision then they can be discouraged. Help them to learn from their mistake.
It is very important for you to make your teenage daughter realize that you love her and support her no matter what. Have confidence on them and they will do very good with finance in future.
SB’s thoughts on educating girl child about money
I do not have a teenage girl, in fact we do not have any kid! But, as I said in the starting paragraph, learning money at an early age helps us manage our finances in better way. More over, women lag men in terms of financial literacy. So, it’s more important to tlak about imparting financial lessons to your girl child.
Patrick brought some excellent points here. ‘d like to add here some of my thoughts. Once you finished talking on the above points and you feel that she’s still interested to learn more. Let her have lessons on taxes, investments, etc.
I chanced upon other good resources; talking to young girls on finances and money, a list of things you need to talk to her about and few tips for talking to her.
Readers, if you have a daughter, how are you teaching your child about money and finances?