Raising financially fit girls…sounds empowering doesn’t it. I’m no expert on money matters whatsoever but I do take the topic of girls and finances seriously because I’m the mum of a little girl. So I did a little research for myself on this topic which I’m excited to share on the Heart Eyes Blog today.
Research conducted on women and money in Australia finds that women have lower incomes, they are more likely to take a break in their career for family reasons and are less confident in managing finances than men. Based on this research, it is clear that women need more financial education starting from an early age.
Raising a financially fit girl is an exciting prospect for me as her mum and the idea of Miss being confident with money and finances in her future makes me proud. Which brings me to the question of where do I start?
My first thought is Australia’s number one finance guy Scott Pape – The Barefoot Investor. Have you heard of him? He’s been my go to guy for all things financial and he was kind enough to answer a few questions for Heart Eyes Blog.
Thank you Scott for taking the time out of your busy schedule to answer a few questions on the topic of raising financially fit girls:
Why should we teach girls specifically about money?
Because it’s a core life skill that every person gets tested on every single day.
Are Australian schools teaching financial literacy adequately or do parents need to take on this role themselves?
I don’t think you can rely on your school to teach your kids about money. The main way kids learn is by modelling their parents behaviour, so the number one way to have financially fit kids, is to be financially fit yourself.
What age do you recommend parents start teaching their daughters about finance?
Before they start school. Pay your kids pocket money — pocket money isn’t about the money, it’s a tool for financial education:
Practically it looks like this:
$1 per year, so a 4 year old gets $4 — if they do jobs above and beyond what they’re required to do as being part of the family. Divide the coins into three jam jars labelled Spend, Save and Give.
What financial skills should parents teach their daughters?
The jam jars give a great foundation:
Spend: enjoy the fruits of your work, and spend wisely.
Save: when you save money you are buying security and peace of mine.
Give: the happiest people are those who give.
So I’ve gone and taken the Barefoot’s advice and set up three jars for her, spend, save and give. She currently has plans to spend all $4 on lollies so we have little way to go but it’s a great start don’t you think?