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Parents have an important role in grooming a girl child. A girl child usually plays different roles throughout her life like daughter, sister, wife, mother. If she is aware of basic concepts of money since childhood, then her base will be strong. Financially educated girls become financially educated mothers and financially educated mothers educate their kids more and this story goes on ...

Direct lessons from parents can help shape a child’s perception of Money. Most effective education is through demonstration. “Children learn more from what you are than what you teach! “

Top 9 points Parents should teach their daughters: 

Explain the concept of money:

Including her, while discussing family finances, will motivate her and create lots of questions on her mind. For Example: Let her calculate how much she needs to save every month in order to pay her school fees next year. , Ask her to calculate how much money she will require to save if she wants to have a new school bag next year. This will encourage her and she will ask questions. And try to answer all her money questions with various examples like, she can be taken to the bank for making her understand how banks work. 

Explain the importance of Saving:

Encourage her to save money in her piggy bank, this will help her to be more aware of savings. For Example, Parents can motivate her by saying that every year we will add a particular amount to her piggy bank if she keeps money in it.  This will motivate her to save every time when she receives cash gifts from relatives, Parents, etc. The next step can be the importance of a savings account with the Bank. Like opening a Bank account will earn interest on it while her piggy bank won’t.  A separate savings account can also be opened in her name, and all her savings can be kept in her bank account. Here she would learn two valuable lessons- patience and the importance of accumulating wealth.

Include her while budgeting:

Include your daughter while creating a home budget. Budgeting would not only make her financially aware, but it would also help her to save. If she has her expenses, ask her to make a budget for her in her notebook, and explain to her how she has to manage her expenses from the money she has. Keep periodic checks on her budget to find out how successful she is in maintaining it. Encourage her to stick to a budget and slowly & steadily she would get the hang of budgeting.

Explain about investing for wealth creation:

Saving money only will not help. Investing money will be required for wealth creation. Explain her available investment options and ask her to decide on which one to invest in. As she starts investing, her savings would start giving her returns and she would be self-motivated to save more. She can start by investing in a Systematic Investment Plan (SIP) of a mutual fund or by opening a fixed deposit account.

Introduction to taxation:

Gradually parents can explain their daughters' different types of taxes that will be levied on her returns and income, and teach the different ways she can save taxes while investing so that she gets more post-tax returns.

Women support women:

The best thing a mother can do for her daughter is to encourage her to seek out and act as a mentor at school, work, and in the world for other women. Exchange of ideas, experiences, and advice is how we help in building collective confidence.

Importance of being Financial Independent:

An Empowered and Independent woman means a financially strong and healthy family. She can make better financial decisions for own and the family. Educating her and including them in social affairs can uplift society.

Money matters for everyone:

Parents can explain to the daughter that money matters are important for all family members. A family should discuss money matters with each other before making any financial decisions. So that each one knows the family’s financial health. Financial education will help her in building confidence for managing bigger financial responsibilities! 

Walk the talk:

Mothers can work as role models for their daughters. If a mother is managing her own & family’s finances, daughters will see and learn from mothers.

Financial literacy is a life skill that everyone should learn. Make your daughter financially aware to understand & manage her finances very well so that she has the basic financial knowledge of handling her money when she stands on her own feet. 

“Everyone has the ability to build a financial ark to survive and flourish in the future. But you must invest time in your financial education to build an ark with a solid foundation”. -Robert Kiyosaki