Samantha Kaye from Wellesley Wealth Advisory discusses how you can give your daughters and granddaughters the tools they need to achieve an equal footing in adulthood
There’s no avoiding it – the girls in your family will face financial challenges boys won’t. Our daughters, granddaughters, nieces and god-daughters therefore need a leg up – not to set them ahead, but to put them on an equal footing.
The turn of the year is therefore the perfect opportunity to talk money with your daughters and grand-daughters. Here’s what you can do!
Mind the gap(s)
We’re all aware of the gender pay gap, but it’s only part of the picture. Having babies, raising children, running a household and caring for older family members can further hinder women’s earning, saving and investing potential, meaning that women are likely to retire with a 40.3% smaller pension pot than the average man’s.1
Many of these challenges are the result of long-standing social attitudes that are embedded in our society. As time goes on, we’re seeing a gradual shift in mindsets, and I hope to see even more progress in terms of gender equality. But in the meantime, there’s still plenty we can do to support our younger female members of the family!
Education holds the key
Of course, we must teach our daughters they can change the world if they want to, but even if they have more modest aspirations, we can still teach them how to thrive in the one we currently live in. It all comes down to financial education.
With the right savings and investment strategy, women can start to overcome the hurdles in their path. Taking time out to raise a family doesn’t have to mean your pension takes a hit if you plan for it. Working part-time doesn’t mean you have to sacrifice career progression.
The key is to not only make our daughters and granddaughters aware of the challenges, but to give them the tools to beat them, too.
Practice makes perfect
Financial education in schools can be inconsistent, so the onus is very much on families to equip the next generation with the knowledge and skills to manage their day-to-day finances. Children can learn about budgeting by helping with the weekly shop or planning an outing, and about the benefits of saving with their own cash account.
Finally – and perhaps most importantly – financially empower your daughters.
In a world where it’s the norm for women to be financially disadvantaged, help them feel like they’re in control of their finances and give them the confidence to ask for that promotion or pay rise at work. That sounds like a good new year’s resolution to me!
Not sure how to approach the subject of money with your daughter or granddaughter? Let’s start a conversation today.
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Wellesley Wealth Advisory is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Groups wealth management products and services, more details of which are set out on the Groups website www.sjp.co.uk/products. Wellesley Wealth Advisory is a trading name of Wellesley Investment Management Ltd.
1 Achieving Gender Equality in Pensions, Prospect 2020
Samantha Kaye, Chartered Financial Planner | Adviser
Wellesley House, 50 Victoria Road,
Burgess Hill, West Sussex RH15 9LH