Times have changed when it comes to women and money, but are you passing your financial skills on? Monica Bradley from MB Associates shares how to help your children build confidence and awareness around money from an early age.
It may sound like a cliché to say times have changed, but when it comes to women and money, the shift has been significant.
You must signup to view this story
Click HERE to SIGNUP. (Pay a one-time fee of £1.99)
or HERE to Log in if you have an account
It’s hard to imagine now, but until the mid-1970s, women couldn’t open bank accounts or apply for a mortgage without a male guarantor. These days, the situation is very different. More women than ever are taking control of their finances, with a notable rise in sole female mortgage applicants in recent years.
In my role as a mortgage adviser, I regularly speak to women who are proud to be financially independent. At the very least, they are often actively involved in managing household finances.
Research shows that women are often leading the way at home. A study by British digital magazine Readly showed that 51% of women reported managing the monthly budget. Many are taking care of daily finances, from paying bills to covering food and household costs.
Despite this, studies show that women are less likely than men to feel confident when it comes to financial decisions. A study commissioned by accounting firm KPMG revealed that just 77% of women feel confident making financial decisions, compared to 88% of men. Women are also less comfortable talking openly about money.
Yet women tend to take a more cautious approach to money and are less likely to make financial mistakes such as missed payments.
Let’s talk about money
However, money conversations are important. As parents, we are our children’s first and most influential teachers.
Children absorb far more than we realise. Research suggests that children can understand basic money concepts from as young as three, and many of their long-term financial habits are formed by the age of seven. The example we set now can have a lasting impact on their future financial wellbeing.
Fortunately, you don’t need to be a financial expert to raise money-savvy children. It’s important to be open and lead by example. Here’s how to ensure your kids develop an awareness and confidence with money issues…
1. Make budgeting part of everyday life
Budgeting is the foundation of good money management. A simple way to introduce this is by breaking money into three categories: needs, wants, and savings.
For younger children, this could be as simple as using jars or envelopes. For older children, it might mean giving them a set amount of money and encouraging them to manage their own spending.
2. Teach the value of saving
Encouraging children to save for something they really want is a powerful lesson. It builds patience, discipline, and an understanding that money is earned and managed.
3. Start conversations early
Money doesn’t need to be a taboo subject. In fact, the more openly we talk about it, the more confident our children will become.
4. Use real-life experiences
Involving children in everyday financial decisions can help them learn about money and what things cost. Let them help compare prices in the supermarket, plan a small budget, or understand why certain choices are made.
5. Lead by example
Perhaps the most important lesson of all is what children see us do. When they see us budgeting and making thoughtful financial decisions, they learn that money can be managed. With this in mind, it’s important to develop your own financial resilience. Financial confidence is not about knowing everything. It’s about being willing to learn, ask questions, and take control. I encourage all of my clients to take a long-term view of their finances and think about where they want to be in five or ten years’ time, so that they can plan accordingly.
More Information
Monica Bradley is the founder and managing director of MB Associates, a multiple-award winning mortgage broker serving clients nationwide for over 20 years. For a free no-obligation chat about your mortgage, call 020 8652 5240 or email info@mbassociates.net
Visit the MB Associates website at https://mbassociates.net/