What I Hope to Teach my Daughter about Money

This summer my daughter reached the milestone age of…the BIG five! She’ll start kindergarten this September and has already begged me for her school supplies. As the cashier rang through a shiny new unicorn backpack, lunch kit, and water bottle, she praised my daughter for getting started early on her back to school shopping. I smiled, hoping her interest meant she’ll grow up to be proactive and diligent (fingers crossed!). This was a proud moment for me because as anyone close to me can attest, I loved school.

My daughter’s official start to her education journey made me reflect on what lessons I can offer her outside of the school curriculum. Naturally, as a financial advisor, I’m enthusiastic about raising a financially savvy daughter, so I sat down and made a list of lessons I want to share: 

Lesson #1 Be in control, and don’t assume someone else will do it all for you

I put this lesson first for a reason. Too often I see people hand over financial decision making to a partner or spouse, choosing to remain in the dark about their finances. Dividing and conquering in a relationship is an efficient strategy when tackling household duties. However, when it comes to finances, I’ve seen much better results when each person is in the know about their money. Nothing is guaranteed in life, and it’s devastating to see people suffer financial losses at the hands of someone else, because they gave up control. When you know what is going on with your money, you are in control, and can feel secure and empowered about your finances. 

Lesson #2 Take care of your money – give it time and attention

Most people I meet with do not openly communicate about their money. Clients sometimes share the worry if they give too much attention to money they fear they’ll be perceived as greedy or as prioritizing money over other elements of life. I want my daughter to know it’s important to give money her time and attention. We exert so much energy into making money. Donna Summer wasn’t kidding when she said “she works hard for the money”. Most people spend upwards of 40 hours per week earning money, the majority of their waking hours. Doesn’t that give your money a right to rank high on your list of priorities? Give your money the time and attention it deserves. Explore spending habits, do a budget, prioritize financial goals, and celebrate money milestones and successes, you and your money deserve it!

Lesson #3 Always be open to learning

The financial world is complex and full of industry jargon. It can be confusing to navigate, especially since it’s also dynamic and changing constantly. There is no expectation for you to know absolutely everything as it relates to your finances and investing, you are not expected to be the expert. But, if you are always open to learning, and engage the right partners along the way, you can get more comfortable with your money a little bit at a time.

Lesson #4 Invest in yourself

When I meet with people for the first time, I ask the question “what is the best financial decision you’ve ever made?” The answers I get are as different as the people I’ve met with, but a common theme is to name a time they’ve invested in themselves. This sometimes means a fabulous vacation, tuition for education, or a once in a lifetime experience. It almost always costs a large sum of money. But the common denominator is that the clients felt it was well worth it. Life is a journey. An investment in oneself is not money wasted, and what comes of it can be priceless.

Lesson #5 Be generous, but don’t forget to give to yourself too 

When I ask my clients to envision what ‘wealthy’ looks like, they often express wanting to give to others. This includes giving their children opportunities they never had, or donating to charities. Chances are, wanting to give to others is something you strive for as well. But in your plans for generosity make sure you don’t forget about the generosity you must show yourself. The in-flight safety announcement to ‘put on your own oxygen mask first’ reminds us of the importance of looking after our own well-being too. Being generous with yourself is a display of self-care and self-respect, both of which will put you in an even better position to be able to give to others. 

Lesson #6 Have goals and dreams, anything is possible

My growing up in a single parent family meant resources were limited, and what my mom earned went toward covering our basic needs. I had to get creative to get anything extra. I earned and saved for a Super Nintendo, my first dog, a car, and my university education. I learned I could accomplish any financial goal I set out to achieve and that gave me great deal of confidence when it came to money.

The world around us is changing. I can’t predict what jobs, what investments and what accomplishments lay ahead for my daughter's future. I would love to protect my daughter from ever having to feel any money related stress. Realistically, I accept this is not something I can guarantee. But no matter what she faces, I know if she can apply these lessons, she’ll have the tools for a prosperous life, so I’m excited to get started on her financial education. But first, maybe we’ll run through the sprinkler and enjoy this summer day.  

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Kalee Boisvert and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.