POONWAT
CHARA-AMPHAIWAN16How to Raise Money-Savvy Girls
I
n my March “Money Smart Women”
column, I promised that I would
weigh in on how to raise money-
smart girls. That prompted an e-mail
from Anne Chernish, a certified finan-
cial planner in Ithaca, N.Y., who volun-
teered her daughter Sydney, 32, as an
example.
When Sydney was about 3 years old,
Anne says she began “dropping little
hints” about money into her conversa-
tions with her daughter. For example,
she would ask Sydney to think about
where her money came from and what
she did with it. As Sydney grew, Anne
encouraged her to write thank-you
notes for cash gifts, earn money by
doing small jobs and save money from
her allowance. By the time Sydney was
10 or 12, she and her mom were talking
about stocks.
Now a brand manager
for Diageo, Sydney has
“the perfect financial
plan,” says her mother.
She saves money auto-
matically every month,
maximizes her retire-
ment plans at work
and is fully invested
in the stock market.
Says Anne, “The
key with kids is
keeping it short,
not getting into
too much detail,
and repeating.”
As the mother of a
money-smart daugh-
ter (and two sons) and
the author of Raising
Money Smart Kids,
I second Anne’s ob-
servations, which
match what I’ve
learned from my
own experiencethem to the stock market. My response:
Go for it!
Research shows that women don’t
lack financial competence, but they
express less confidence than men
when it comes to money matters. It
doesn’t help that they’re less likely
than men to talk about money with
their friends, which puts them at
another disad vantage (see “Money
Smart Women,” Oct. 2017). So getting
an early start is as much about boost-
ing girls’ con fidence as increasing
their financial knowledge.
As a hands-on way of learning to
manage money, nothing beats an allow-
ance that comes with certain spending
and saving responsibilities. Resist the
temptation to shield your daughters
from those responsibilities; they need
to feel comfortable handling their own
money so they aren’t tempted to
cede that job to someone else
when they get older.
When it comes time for your
daughter to get her first summer
job, help her prepare a résumé
that showcases her talents and
interests. And rehearse with
her so she knows how to speak
up during a job interview.
Never underestimate the impor-
tance of role models, whether that’s
you or someone else. I once attended
an investing boot camp for teenage
girls conducted by female financial
advisers. Besides asking questions
about the markets, the girls were curi-
ous about how the advisers got their
jobs. When they discovered that one
had once been a ballet dancer and an-
other had been in retail sales, it was as
inspirational for the teens as anything
they learned about stocks and bonds. ■and that of hundreds of parents I’ve
spoken with over the years. Small les-
sons have a big impact, and parents—
and grandparents—play a key role in
teaching those lessons. Adults often
feel awkward talking about money
with kids. But the earlier you start, and
the more you can make money matters
a natural part of everyday discussions,
the easier the conversation.The gender gap. Unfortunately, even
when parents do talk to their children
about money, there’s evidence that
they often speak differently to their
sons and daughters. A survey by
Charles Schwab, for example, found
that parents emphasize saving and
budgeting with their daughters but
are more likely to discuss investing
with their sons. So it’s not surprisingWHEN PARENTS TALK TO THEIR
KIDS ABOUT MONEY, THEY OFTEN
SPEAK DIFFERENTLY TO THEIR
SONS AND DAUGHTERS.MONEY SMART WOMEN Janet BodnarAHEAD Commentarythat women are less likely
than men to feel comfort-
able about investing.
That presents a golden
opportunity for Kip-
linger’s readers, such
as Tony Hausner,
who is also past
president of the
Washington, D.C.,
metro chapter of the
American Association of In-
dividual Investors. Hausner
once asked me if it made sense
to buy his 6-year-old grand-
daughters shares in a stock
such as Disney to introduceJANET BODNAR IS EDITOR AT LARGE OF KIPLINGER’S
PERSONAL FINANCE MAGAZINE. YOU CAN CONTACT HER
AT [email protected].