More moms and dads are talking about financial goals with their sons than with their daughters, according to the most recent T. Rowe Price survey on parents, kids and money. In fact, more sons had credit cards and were aware their parents were saving for their college educations.
If we expect our daughters to be less capable than our sons, they will be.
That’s why I asked my friend and Know Your Value finance contributor Jean Chatzky for some advice on how we can up our game. After giving it a lot of thought, here are my takeaways for parents:
1. Make money a daily conversation – at the breakfast and dinner table
Start when your daughters are young, and talk about how we make choices based on our values. It’s OK to say we choose to spend less on eating out because we like to spend more on family vacations or college saving. You’re looking to communicate the fact that it’s a limited resource and we all spend a lifetime choosing.
2. Deal with the fact that money has become invisible
When you pull money out of the ATM, explain how it got into the bank in the first place. When you swipe a credit card, teach them that the bill will have to be paid, otherwise you give the impression that there’s always an unlimited supply.
Help your daughters set goals for their money. Figure out what they want and then plot a course to get there. If it’s too tough to do on a small allowance, encourage them to make an argument for why they deserve a raise. Consider it a starter salary negotiation. Women keep too much money in savings accounts, earning nothing when much of that money should be in the markets. Share with your daughters how you’re investing. Buy a share of stock in a company they’re interested in and track it together. Know that our daughters miss nothing. You may not feel completely confident managing your money – that’s OK. Let them see you asking questions, gathering information and taking steps to learn the skills you feel you’re lacking. They’ll learn that that’s the way to success for them, For more of my tips and tools on how to set and manage your financial goals, sign up for the Know Your Value newsletter and follow Know Your Value on Facebook, Twitter and Instagram.
Mika Brzezinski is the co-host of MS NOW's Morning Joe, founder of “Know Your Value” and author of four best-selling books, including “EARN IT!: Know Your Value and Grow Your Career, in Your 20s and Beyond” (Hachette Books; May 7, 2019) with co-author Daniela Pierre-Bravo. Prior to joining MSNBC in 2007, Mika was an anchor of CBS Evening News Weekend Edition and a CBS News correspondent who frequently contributed to CBS Sunday Morning and 60 Minutes. Recommended
3. Teach your children to save … successfully.
4. Teach them to invest.
5. Finally, you have to walk the talk.
