Raising Money-Confident Girls
Someday in the future, income inequality will be a figment of the past.
Someday, a woman’s confidence in investing won’t trail a man’s in poll after poll.
And someday, financial advice won’t have to be given separately to boys and girls.
But that day has yet to arrive. And as such, our sons and daughter still require two sets of guidance—two sets of FYI’s—in order to reach their full financial potential.
This summer, Nerd Wallet addressed an open letter to girls entitled, “Dear Young Girls, Let’s Talk About Money.” The five-part essay outlines the issues and challenges faced specifically and disproportionately by our daughters, sisters, and mothers. Among them: “demand equal pay” and “trust your instincts.”
Parenting the Wage Gap into Oblivion
We’ve all heard the numbers: women earn, on average, 82 cents on the dollar compared to their equally qualified male counterparts. Among the many factors keeping such drastic income inequality in existence is thought to be self-confidence. Men tend to have an easier time asserting their claim to higher initial pay, a raise, or a promotion.
So what if we could change that for our daughters? Much of the battle can be won in building self-confidence in our girls. And after that, getting practical. The letter goes into detail about how to make the case for your worth, including market research on typical salaries, and asking “what would change your answer” if told “no.” The bottom line? Know your worth and don’t shy away from communicating it with evidence.
Matching Competence with Confidence
Ready for a palm-to-forehead stat? A Merrill Lynch survey of more than 2,500 women found that women express the same level of confidence as men in almost every area of life. Except investing. But get this: they tend to perform better at investing than men. Why? First, they’re willing to ask for help, and they’re more likely to save. So what’s left? Believing that they have what it takes. Now that’s something we can work with.
As a parent, you have the opportunity to help your daughter uncover the gold that’s within her. For her financial life, that means showing her how the innate abilities she already possessesmake her well-suited for investing. And her time? It’s worth every single dime that her brother’s is.
Oh, and about that investing confidence… Let’s toss it to Candace Parker to share some girl power, money-style, with the world: