It is World Daughter’s Day today and in a world where women are leaving no stone unturned to break the proverbial glass ceiling, there remains a lot of room for evolution with regards to bringing up daughters in a gender equal way. One of the areas where traditionally women have been lagging behind and continue to trail men is the arena of financial management. Despite women making are making confident strides in every sphere, money management remains a terrain dominated by men. Only 27% of the populace in India is financially literate, according to the Annual Report 2020-21 of the National Centre for Financial Education and the number is around 21% for women.

As parents, it is extremely important to lay the foundation skills of money management skills for their daughters and this Daughter’s Day you can take the first stepping stone if you have been procrastinating on this front. With adolescents living in a world that is highly driven by consumerism, it has become even more important for this generation to grasp how money works and the onus lies on the parents to make money relatable for them. This can also prepare them for situations where the family is met with an exigency and the children are forced to give up their indulgences for a while – familiarity with finances can make it easier for them to take things in their stride.

Gender and financial independence

When it comes to parents putting in efforts to inculcate financial knowhow in their daughters, it is important bear in mind that gender indeed has a bearing on the equation that young people come to have with money as they become adults. While positive changes are underway and an increasing number of families is not shying away from rejecting discriminatory tropes when bringing up their children but there is no certainty that children would continue to inhabit similar ideological spaces when they grow up.

If we truly want to build an equitable world for our daughters where they do not have to put up a fight for their basic rights and necessities and they have the freedom to dream, work and feel financially secure, then we all need to acknowledge the importance of financial literacy. The roots of financial literacy sowed in young girls can empower them when they grow up to make independent decisions - be it an emergency or unseen situations, financial literacy can empower them to build their life on their own terms.

While the world continues to maintain a steady pace in its quest to attain new milestones of gender equality, discrimination will continue to be a reality in some way or the other for women of this and future generations. For instance, the gender pay gap is a real problem and will continue to be so for the foreseeable future - according to the World Economic Forum’s 2021 Global Gender Gap Report it will take an average of 135.6 years for women and men to reach parity on a range of factors worldwide. Even today many young women are deterred by patriarchal mindsets from being independent and remain confined to the demands of traditional gender roles.

Hence parents of adolescent girls should take into account the struggles that plague most adult women face on account of their gender. Adolescence is an appropriate time for parents to introduce their daughters to financial literacy concepts such as value of money, saving, spending and investing. A good way is to start by discussing money matters in the house as a part of normal conversation as this can create awareness and help them understand the importance the impact of financial management in our day-to-day lives. Parents should encourage daughters to set goals for themselves with their money and help them save for it - this can be something simple such as an outfit or a treat for their friends. With time she they even participate with their parents in longer term goals such as their college education.

Sources –
1) https://www.livemint.com/money/personal-finance/why-financial-planning-for-women-is-crucial-11659281674882.html
2) http://wef.ch/gendergap21