When we became mothers, we tend to develop a deep desire to give our daughter's the world.
We instantly want to meet her needs and make all her dreams come true.
However, we need to be careful that we aren’t letting this innate desire prohibit us from preparing her for the real world.
Every girl needs to learn how to earn and manage money.
In fact, we can start with a few simple conversations and let them inspire our creativity in teaching her what she needs to know to be financially savvy.
- Saving BIG! Ask your daughter, “What is something you REALLY want right now?” Tell her to dream big! Your girl will most likely have a quick response. Maybe she wants an American Girl Doll, a pair of elite running shoes, or a Nintendo Switch. It helps if the item she has been dreaming about has a big price tag. Affirm her choice and then say something like, “That's a great goal! Let's make a plan for you to save enough money to purchase it yourself.” You might even suggest extra weekly chores and a savings plan that she can add money to each week. In the end, as she makes progress towards her goal, she will be motivated to keep saving. When she starts to feel discouraged, remind her of her “dream” and how GREAT it is going to be when she walks into the store to purchase it with her own money.
- Explain the difference between saving and investing. You don’t have to pull out your economics book from college for her to begin grasping key money concepts. Keep it simple. Give her a small piggy bank and allow her to keep her money in it. Ask her how she “increases” the amount in her piggy bank and have her explain it in her own words. Next, ask her to give you some of her money. Tell her that you are going to “invest” it for her. For each week she leaves it with you, add a small amount of money to her investment. If she keeps her “investment” safe and doesn’t ask for it back in an allotted time period, her money will grow and her return on investment will be doubled. Or, have a conversation about other ways to invest her money. Explain that by investing her $5 in lemonade mix and cups, she can turn that $5 into $25. Then have a discussion about which gets a bigger return on her investment - saving in her piggy bank, saving with you, or starting a small business. Depending on her age, you might even create a “stock” for her to “purchase” and watch it grow! These conversations will get her wheels turning and help her to think about money. differently!
- There is an abundance of money in the world. We want our girls to think of money as an abundant resource. They can always go out and earn more. One person earning a lot of money doesn't mean you can't earn a lot of money. If you spend your money - you can go out and earn more. If you invest your money and don't sell as much as you'd like, there are other ways to earn. Ensuring our girls see money as something that is always in flow and always available will shape how she pursues her financial goals in the future.
Money conversations might seem overwhelming at times. But keep in mind that contentment and vision can grow simultaneously. The happiest people have both.
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