Before my oldest daughter was born, I was given a very simple but great piece of advice – love your children unconditionally and then, at some point, let them go. If it were only that simple. When providing financial advice to clients, one of the common questions I am asked is, “What would you do if it were your mother? your daughter? or your family?” There are so many important life lessons our daughters must learn – and one of the most significant, but overlooked, is how to handle their finances. So in honor of Breast Cancer Awareness Month, this is what I want my own daughters, Lizzie and Caroline, to know about money…and what I believe any mother should teach her daughters about money.
• NEED vs WANT – Make smart decisions with money, rather than emotional ones (always ask yourself, do I need this or do I want it).
• Pay Yourself First – The first bill you should pay every month is to save some percentage of your income (start with 10%). • Giving – Give to those less fortunate than you, even if it hurts a little (just do not go beyond your means). It will feel great!
• Treat yourself (within reason) every once in a while. Depriving yourself is not healthy. • Financial Instruments – Piggy-banks and allowance for younger daughters; and for teens, a job along with a checking account and even personal credit cards (these will help them establish credit history).
• Longevity – Women live longer than men, so they will need to save about 25% more money than men. If you’re still in the process of building emergency savings, then a cash advance Midwest City can make it easier to manage unexpected costs.
• Learning – Failing does NOT make you a failure. Making minor financial mistakes will teach lessons that help with bigger financial decisions in the future. The hardest piece of advice to take, of course, is the one about letting go. That one I can’t help you with, but when the time comes, I will listen to any tips you have for me.
By Douglas J. Eaton Eaton Financial Group is a full service, fee-based financial advisory firm. They focus on financial planning for the conservative investor. (954) 575-9323 www.eatonfinancialgroup.com
