Tips to Prepare Your Child for Financial Success

(StatePoint) A new survey reveals that women are increasingly earning the title of “breadwinner” in their households.

The Wells Fargo survey found that over half of all partnered women reported greater or equal earnings to their spouse. And nearly one-third of millennial and Gen X women reported being the primary breadwinner -- one and a half times higher than women from the boomer and traditionalist generations. At the same time, younger women see more barriers in developing their financial skills. More than a third of millennial and Gen X women said they find financial concepts intimidating, and didn’t learn enough about finances while growing up. But there’s good news: as a result, more than three out of four say they’re taking charge and prioritizing the financial education of their children.

“Many families treat the subject of money as a private affair, leaving kids to grow up and learn money lessons the hard way. However, what you say – or don’t say – can have profound effects on how children handle their finances later,” says Amy Jucoski, senior director of planning, Wealth & Investment Management, Wells Fargo.

During Women’s History Month this March, encourage strong financial acumen among the next generation of breadwinners with these tips from Wells Fargo:

• Get started early: Introduce the concept of earning money to young children by talking about your job and what your salary pays for. Consider tying your child’s allowance to chores.

• Respect money: Demonstrate how small amounts of change saved in a jar can add up to a large sum of money over time. 

• Help set savings goals. Help your child figure out how long it will take to save for something they want. Give them an incentive to defer spending by matching their savings.

• Empower older children: Keep the lines of communication open, even after children enter adulthood. By doing so, you can help them avoid financial mishaps. If and when your child does make a poor choice, keep the conversation positive and productive. Help them make a plan to reset and rebuild.

• Be a role model: Set a good example for children of all ages by continuing to build on your own financial acumen.

“Our survey revealed that younger women are eager to learn and grow. In fact, four out of five women feel more comfortable during times of economic uncertainty when they have someone to talk with openly about money and finances,” says Jucoski, who adds that economic uncertainty often leads people to action in many areas of their lives and addressing their finances is one of them.

To expand your own financial know-how, visit handsonbanking.org, an educational resource page offered by Wells Fargo featuring tips and advice topics like investing, retirement, debt and more. The site also features lesson plans and activities for kids.

“With more women taking on the role of breadwinner in their families, they’re well-positioned to prepare the next generation of women for financial success,” says Jucoski.

Photo Credit: (c) Prostock-Studio / iStock via Getty Images Plus

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