This International Women’s Day (IWD), you might be taking time out from your normal daily routine to think about the women who have inspired you. From historical leaders to intrepid explorers and the heroes a little closer to home, we’ve all looked up to amazing women at some point in our lives.
As an all-female company in a traditionally male-dominated profession, it’s something we think about often. Our role is to provide advice and education to you so that you can realise your financial potential and live the life you want. But the cycle doesn’t end there.
You might already have read about how advice can help you to bridge the gender finance gap but intergenerational planning is important too. What will happen to the money you leave behind and will it be in safe hands?
Keep reading for five invaluable money lessons that could help to educate the young women in your life, inspiring them to form better money habits and build a strong and stable future.
1. Money isn’t a taboo subject
Money habits are formed young, possibly even by age seven, so setting a good example to your children or grandchildren is key.
The first, and arguably most important lesson to teach them is that money isn’t a taboo subject. It’s ok, and preferable, to have open discussions about money and to make these discussions the norm. Frank and open communication can help to head off worries and avoid disputes. And when young, asking questions is the best way to learn.
Encourage open discussion about household finances and difficult topics like debt and you’ll form an important money habit early.
2. Saving for what you want
Money has to be earned and you won’t always be able to afford what you want. Saving takes patience and discipline, which are vital lessons for all aspects of adult life.
You can begin to instil these lessons in your loved ones by providing pocket money and introducing concepts like budgeting. Your child or grandchild might use separate piggy banks to cover the costs of things they want to buy now and longer-term savings for more expensive items they can’t yet afford.
This lesson will be crucial in later life. It could also mean that when you save for them, or pass your wealth to them later in life, you’ll know they have the building blocks to make sensible financial decisions.
3. Investing for the future
The work continues towards financial gender parity, but there is still much work to be done. And one area where women continue to fall behind men is in investment.
Teaching your child the value of balancing risk and reward as well as more complex financial topics like compound returns, could help to bridge this gap.
Investment, from an early age, could help them build significant returns and provide the financial security they need to live the life they choose.
4. Not living beyond your means
Understanding the difference between good and bad, and high- and low-interest debt, could prove vital as your loved ones approach adult life.
A well-managed credit card can be useful for attaining a positive credit score but mismanagement can quickly spiral. When the time comes for them to apply for a mortgage, a firm grasp of concepts like interest rates and loan-to-value ratios will give them a firm footing.
A financial plan can be useful for understanding the gap between what you have now and what you’d like to have in the future, as well as potential paths between the two. Having a goal to strive for and save towards can also help when the temptation to live beyond our means strikes.
5. Leave space to enjoy yourself
Back in September 2024, we wrote about how cashflow modelling can leave you free to enjoy your wealth and make memories, including ticking items off your bucket list.
This is the kind of financial freedom that long-term planning and advice can provide. And intergenerational planning can help here.
The fact that your hard-earned money is there to enjoy is a lesson all too easily forgotten. Be sure to embrace the opportunity to spend, making memories for yourself and your loved ones and you’ll be setting another good example, inspiring them to do likewise.
Get in touch
At Jane Smith, we have the ultimate financial inspiration in our namesake, Jane Smith. We continue the incredible work she began by providing professional and expert finance to you and we can help you to pass these lessons to the important young women in your life.
If you’re looking for an independent financial adviser in Milton Keynes or Olney, whether for yourself or maybe even for a daughter or granddaughter, look no further. At Jane Smith Financial Planning, we’ve been helping clients for 30 years, so contact us at info@janesmithfinancial.com or call 01234 713131 to see what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
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