Smart Money Lessons to Teach Your Teenage Daughter
January 27, 2016
We know, it can be hard to get through to your teenage daughter about anything these days. However there are some lessons about money that are best learned now. At some point she will be making her own financial decisions and more than likely those of her household.
According to the Family Wealth Advisors Counsel’s Women of Wealth Study of 2015:
• Women are the breadwinners in four of ten American Families.
• Almost 95 percent of women will be their family’s principal financial decision-maker at some point.
So how do you prepare her? We feel that these 3 money lessons are incredibly important to teach to teenage daughters:
1. How to save. Kids need to learn and start good savings habits. Generally it is recommended for adults to save 20% of their income. Encourage her to do the same.
2. How to spend. They need to learn to stretch the value of her hard earned dollar. It is important to instill spending savvy early so she makes the right choices in the future.
3. How to negotiate. According to a 2015 study by Vanguard, men have a 50% higher balance in their 401(k) plans compared to women, even though men and women invest at about the same risk level and the same percentages. This is because men’s salaries are typically higher.
Making money and learning to manage it well can make a huge difference in your daughter’s life. We also strongly recommend bringing your daughter in with you to meet with one of our Wealth Advisors. To schedule a meeting please call us at 763-231-9510.