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Teach girls to take control of their finances and future

start early: Teaching your daughter to put money away at a tender age will help her manage her life better later PHOTO: ISTOCK
start early: Teaching your daughter to put money away at a tender age will help her manage her life better later PHOTO: ISTOCK

In the olden days it used to be said that a woman's place was in the kitchen but in the 21st century women are not only expected to be "Jacks of all trades", but also masters of them.

It is unlikely that women back then spoke to their grandmothers or mothers about financial issues as it may have been taboo to discuss money, but this needs to change. Mothers should prepare their daughters to be financially and emotionally independent.

Our daughters' generation have substantially more access to resources, career options and information than their predecessors had.

We need to teach our daughters to think critically about their future and help them discover the tools and habits that will enable them to make sound financial and non-financial decisions in every stage of life.

As they grow we need to teach them how to develop a culture of saving, the difference between saving and investing, how to budget and manage money, career choices, entrepreneurship and the value of education, and to ensure that they are capable of standing on their feet before they earn their first salary.

Parents exert the most influence on their children's financial habits, so the groundwork starts at home, not at school or in the office.

We need to help them realise that they have a right to education, career opportunities and to be in total control of their money, regardless of marital status, from an early age.

When a woman enters a relationship with her investments and finances in order, she is more likely to demand financial responsibility from her partner. In addition, she will be more discerning about a potential partner.

While financial status should not be the determining factor in a relationship, choosing a person who has the same beliefs and ethics about money is vital for long-lasting happiness and stability.

Young women need to come to terms with the reality that they can no longer rely on their partners to take care of them till death do them apart. Divorce is one possibility, but retrenchment, disability and illness can all lead to the cash flow drying up.

So gaining and enhancing skills and education should be one of a woman's top priorities, before and after she is married.

We must tell our daughters of the dangers of women who have opted out of the workforce and been trapped in unhealthy relationships because they have no way of supporting themselves.

All women are at risk of being financially compromised, so each one should ask the following questions to motivate her to prepare for financial independence:

lWhat if my husband is suddenly disabled or killed?

lWould I know where to look for the will, insurance policies or investment accounts?

lDoes my husband have adequate life cover?

lDoes he have disability insurance and when does it take effect?

lWhat would I do if he does not have life insurance and what if he leaves a mound of debt?

lDo I know the retirement plan is on track or does it even exist or will he rely on his pension payout.

lHow much is needed to retire?

Parboo is head of savings and investments at Standard Bank

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