Women and wealth

March is Women’s History Month, making it the perfect time to reflect on and appreciate the many achievements of women in all aspects of our lives – from government to science and everything in between. This month is also an opportunity to examine ways that we, as a community, can continue to empower and prepare young women to lead the next generation.

As a mother to a young daughter and a career banker, I firmly believe that teaching our girls about finances and investments at an early age can make a tremendous difference in their personal and professional lives.

Given the fact that women historically feel significantly less confident about handling their finances, let’s all make a commitment this month to talk to our girls about wealth and how to manage it. Here are a few ideas to get the conversation started.

BUDGETING 101

Teach your girls the basics of budgeting at a young age by using their weekly or monthly allowance or birthday and holiday money to track expenses. Whenever they receive money, have them divide it equally into three jars labeled “Saving,” “Spending” and “Sharing.” They can use the spending money for smaller purchases like candy and the sharing money to give back to others in need or local charities. The savings should be used for more expensive toys or games they want to purchase, but need to save up for.

NEEDS VS. WANTS

Teach your daughters the difference between a need and a want. How many of us have heard a similar version of “But Mom, I just have to have these new boots or I’ll die.” Learning early that “No, those boots are a want, and the $150 they cost is your lunch money for 6-8 weeks,” is vital. You NEED lunch, you WANT boots. As simple as it sounds, it can make a huge difference in how well they do with managing their own money. Make them earn the boots, whether it’s chores, grades or babysitting a sibling. One day, it might be paying the electric bill vs. new boots, and that’s one place we see young adults get into trouble with credit card spending.

SHOP TOGETHER

Involve your girls in the shopping process. Have them review your everyday receipts – from grocery stores to ice cream runs. Ensure they understand how much things actually cost and what the sales tax adds to every purchase. While at the store, talk to your child about why you are buying a certain brand over another, such as generic apple juice. This teaches them about making choices when spending money.

CREDIT CARD RESPONSIBILITY

Before you send your child to college, make sure you have taught her how to responsibly use a debit or credit card. Give them your credit card to run errands one weekend and then sit down to go through the statements together. Highlight the types of items you use a credit card for and how you make payments. I still see students who don’t realize that a debit card equals real money. There isn’t an unlimited supply of cash. Help your girls avoid the embarrassing lesson of having your card declined because of insufficient funds.

INVEST EARLY

Start by opening an actual bank account for your girls at a young age: savings accounts as early as five to six years old and checking accounts once they are earning money from a part-time job or babysitting. Take them to the bank and talk them through how accounts works. As your girls get older, help them manage their accounts online so they can see the money they earn and spend. Take this lesson even a step further by showing them the stock markets. Try doing a “model investment” by picking a company they can relate to – Disney, Apple, Gap Inc. or Toyota, and help them track the stocks. You could even have a competition between siblings or with you!

Women control a significant percentage of wealth in this country, which will only increase in the next generation. The financial industry is catching up to this phenomena and numerous firms are now offering investment advice and platforms targeted specifically to women. Make sure that the girls in your life are equipped with the financial tools and strategies they need to succeed in this world.

*Laura Heape Brisson, a resident of the Cainhoy Peninsula, is a Senior Vice President and Relationship Manager in the Private Client Services Group for First Tennessee Bank’s Charleston office. She is responsible for helping her clients manage all aspects of their business and personal financial lives from everyday banking and lending, to asset management and trust services. A Charleston native, Laura is married with a nine-year old daughter.

Daniel Island Publishing

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Unit 108
Daniel Island, SC 29492 

Office Number: 843-856-1999
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