When it comes to financial literacy young women have statistically been the demographic with lowest level of knowledge and skills in the field. Understanding how to save, budget, reduce debt and properly invest is an essential skill-set for every girl.
Here are five reasons why you should ensure your daughter is financially literate before she turns 18.
Relationship experts note that money is one of the most effective ways that abusers try to their exert power. A lack of financial literacy can, in some cases, lead to young women relinquishing their financial power to their partner.
By ensuring that your daughter has the knowledge to protect herself financially you can help her avoid dangerous situations as an adult.
It is a well-known fact that Canadian women make 69 cents for every dollar earned by men. This significant disparity puts women at a major disadvantage in terms of building and sustaining financial independence.
In order to avoid the difficulties that the wage gap can cause it is important that young women know the tools available to improve their financial standing on their own.
Ultimately, having control over your own finances allows you to navigate through life on your terms. When young women are taught how to properly build financial cushions they ensure success. In doing so, girls are not only learning how to have financial freedom but freedom from the lifelong burden of living paycheck to paycheck. Women living paycheck to paycheck often struggle the most when crisis inevitably arises.
By priming your daughter with financial literacy skills you can help her know how to financially prepare for any situation she might face.
Statistically, it is more than likely your daughter will pursue higher education such as university or college. More than 67% of the post-secondary graduates in Canada are women. Unfortunately, with greater knowledge also comes a higher chance of having major student debt.
Student loans can take a serious toll on a person's mental (and in some cases physical) well being. Most girls do not fully understand the long-term ramifications of owing excessive amounts of money to the government or bank.
Through financial education your daughter can become well-verse in the intricacies of interest and debt repayment. Financial literacy can ultimately change the trajectory of her life for the better.
While we all know that money can't buy happiness, many studies have shown that individuals with greater control over their finances tend to be less stressed and more fulfilled. Financial issues are often cited as one of the primary sources of stress in a person's life. Teaching your daughter how to control her money instead of allowing money to control her is one of the most liberating and valuable parents a parent can offer their child.