Are You Preparing Your Daughter for Her Financial Future?

Photo (cc) by GoodNCrazy

More boys than girls say their parents talk to them about money and setting financial goals.

The annual Parents, Kids and Money Survey by investment firm T. Rowe Price revealed that sons and daughters are not treated equally when it comes to learning about money matters at home. The survey found that parents discuss financial goals and other money issues with 58 percent of boys, compared with just 50 percent of girls.

It’s a disturbing statistic with potentially damaging consequences, because talking to kids about money really makes a difference in their lives. Says a survey press release:

The survey of 8- to 14-year-old kids and their parents found a correlation between talking to kids of either gender about financial concepts and kids developing positive financial behaviors, such as identifying themselves as a saver rather than a spender, feeling more confident about money, and saving for their own college education.

Other surprising boy vs. girl survey findings include:

  • Money smarts. When asked if they’re extremely smart about money, 45 percent of boys said they are, compared with 38 percent of girls.
  • Money comprehension. Of the parents surveyed who have just one child, 80 percent of parents with a boy said their son understands the value of a dollar. Only 69 percent of parents with a daughter said the same.
  • Credit cards. Twice as many boys (12 percent) have credit cards compared with their female counterparts (6 percent).
  • College savings. While 53 percent of boys said their parents are putting away money for their college education, only 42 percent of girls said the same.

Judith Ward, a mother of two and a senior financial planner at T. Rowe Rice, said:

Boys and girls should have the same opportunities to learn about money matters at home so they can grow into financially savvy adults. If you want to invest in your kids’ futures, start by talking to them about money matters weekly. The correlation between the frequency of conversations about money and kids’ smart financial decision-making is undeniable.

If you need proof that money conversations with your kids are important, check out these stats:

  • Saving for college. Fifty-eight percent of kids whose folks regularly talk to them about saving for college do so on their own, compared with 23 percent whose parents don’t discuss college savings. Plus, “81 percent of kids whose parents frequently talk to them about investment vehicles like stocks and bonds say they are saving for college on their own, as opposed to just 25 percent of kids whose parents do not frequently talk about investment vehicles,” the press release said.
  • Financially savvy. If you talk about family finances with your kids, chances are good that they’ll feel smart about money (66 percent). Just 37 percent of kids whose parents left them in the dark about financial matters said they felt smart about money.

It is mind-boggling to me that parents today are talking more to their boys than girls about money issues. It is important to educate your children — regardless of gender — about the financial realities of life.

I know I never had financial discussions with my parents when I was a kid. Saving, investing and setting financial goals seemed like a foreign language to me, and I believe that lack of knowledge handicapped me in my 20s. I won’t make that mistake with my kids.

Do you discuss money matters with your kids? Share your comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
How Baby Boomers Are Earning an Extra $573 a Month
How Baby Boomers Are Earning an Extra $573 a Month

In the gig economy, baby boomers are out-hustling their younger competition. You can cash in, too.

How to Fix 6 Common Retirement Mistakes
How to Fix 6 Common Retirement Mistakes

Here’s how to strengthen your nest egg before or even during your golden years so these missteps don’t ruin your retirement.

How to Invest in Real Estate for as Little as $500
How to Invest in Real Estate for as Little as $500

If stock market volatility has you looking for other investment options, here’s a way to diversify — even if you don’t have tons of money.

7 Tricks to Cleaning Your Bathroom Faster
7 Tricks to Cleaning Your Bathroom Faster

These tips can get your bathroom sparkling with little time and no elbow grease.

The 5 Worst Home Upgrades for the Money
The 5 Worst Home Upgrades for the Money

These home improvement projects basically never pay off.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

What a $15 Minimum Wage Means for Social Security
What a $15 Minimum Wage Means for Social Security

A federal minimum-wage hike could affect the Social Security system dramatically.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

6 Ways to Protect Your Retirement Accounts From Hackers
6 Ways to Protect Your Retirement Accounts From Hackers

Imagine having $245,000 stolen from your retirement account — and not being reimbursed.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

7 Hidden Sections of Amazon Every Shopper Should Know
7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

7 Costly Health Problems That Strike After Age 50
7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

This Is the Most Dependable Car Brand in the U.S.
This Is the Most Dependable Car Brand in the U.S.

This brand’s vehicles are least likely to give drivers repair headaches, according to J.D. Power.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.