{"id":2553,"date":"2023-05-08T19:00:00","date_gmt":"2023-05-09T00:00:00","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/insights\/six-conversations-to-have-with-your-daughters-to-ensure-their-financial-wellness\/"},"modified":"2024-09-25T15:38:34","modified_gmt":"2024-09-25T19:38:34","slug":"six-conversations-to-have-with-your-daughters-to-ensure-their-financial-wellness","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/insights\/six-conversations-to-have-with-your-daughters-to-ensure-their-financial-wellness","title":{"rendered":"Conversations to have with your daughters to ensure their financial wellness"},"content":{"rendered":"\n
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This article is part of an ongoing initiative from RBC Wealth Management to highlight women-led insights from across the bank. The expertise highlighted covers a variety of topics and themes which have also been featured in the Financial Post\u2014Canada\u2019s source for news and analysis in today\u2019s competitive business environment.<\/em><\/p>\n<\/div>\n\n\n\n

By Louise Stevenson, investment advisor<\/strong>
RBC Dominion Securities, Inc.<\/strong><\/p>\n\n\n\n

We all want our daughters to grow up to be strong and independent, but children often model the behaviour of their parents.<\/p>\n\n\n\n

Remarking on a 2020 survey that noted worldwide financial literacy rates of 15-year-old students, the Financial Consumer Agency of Canada reported <\/a> that the results found that \u201cteens who talked about finances with their parents, even just once a week, scored 33 points higher in financial literacy than those who did not.\u201d<\/p>\n\n\n\n

\u201cHigher levels of financial literacy in students are associated with confidence in keeping track of their account balance and planning their spending with consideration of their current financial situation,” noted the agency.1<\/sup> “B<\/span>oth are key factors in building a financially secure future.”<\/p>\n\n\n\n

Do you remember watching your parent(s) balance their chequebook? I do. The advantage of technology is that we now have access to great apps and data, but the downside of our tap culture is that it’s so easy to tap away without\u00a0<\/span>paying real attention to our purchases <\/a>.<\/p>\n\n\n\n

The next time you find yourself with your daughter safely tucked into the seat beside you in the car, here are some topics you may want to discuss:<\/p>\n\n\n\n

1. Set up two accounts to make budget management easier<\/h2>\n\n\n\n

Once you’ve established your monthly budget, transfer the monthly total to the \u201cspending” account (likely a traditional chequing account), keeping any excess in the second (likely a savings account). This can help you (and your daughter) establish better spending habits and ideally live within your budget.<\/p>\n\n\n\n

2. Don’t ignore the power of compounding<\/h2>\n\n\n\n

We’ve all heard the advice to \u201cpay yourself first.” There’s future financial wellness in that statement. If, at age 20, your daughter started saving and investing $361.04 per month, or roughly $12 per day, based on a five percent rate of return, she could be a millionaire by 65.<\/p>\n\n\n\n

If she balks at that amount, I’m not going to be patronizing and ask her to forgo her latte (thank you, Sallie Krawcheck <\/a>, co-founder of robo-advisor Ellevest Inc., for clearing that up), but I’m going to suggest that investing in herself and her future is absolutely worth it and the earlier she starts, the better. That monthly amount increases to $698.41 if she waits until she is 30.<\/p>\n\n\n\n

3. Teach her the importance of financial independence<\/h2>\n\n\n\n

As your daughter enters adulthood, it\u2019s crucial she\u2019s already taken steps toward achieving financial independence.<\/p>\n\n\n\n

Some benefits you can talk to her about include:<\/p>\n\n\n\n