When is it too soon to start learning about the value of dollars and cents? Girls as young as six are being introduced to basic money concepts in The Girls Inc. economic literacy program, which aims to grow a generation of smart, empowered female investors. Girls Inc. is a non-profit organization with locations throughout the U.S., as well as a handful in Ontario and Alberta. To find a location, click here.
It’s a goal good as gold, considering research shows that while adult women make the majority of household spending decisions, they tend to take a backseat when it comes to investing, letting someone else – an employer, financial adviser or spouse – make those decisions. This study comparing high-income men and women found that women are less likely than men to be regular or involved investors or to describe themselves as being confident or knowledgeable about investing.
Girls in the program range in age from six to 18 and learn in stages. They start with the basics – how to distinguish needs from wants, why money is important – and move on to the more advanced – rent versus own, equal pay for equal work and, of course, investing.
Let’s face it. With all its acronyms and abbreviations, investing can be an area of personal finance that seems complicated, confusing, and – if you’re not tied to what’s happening – boring. That’s why selected U.S. cities with Girls Inc. programs recently launched an investment challenge (still in its pilot stage) that helps girls feel more invested in their moneymaking and management decisions.
Participating teams of girls, aged 12 to 18, get hands-on investing experience as they build and manage diversified, real-time portfolios. Each group starts a virtual portfolio worth $20,000. Besides scoring knowledge and confidence, the budding investors get to keep the gains in the form of college scholarships.
Your kids could also test out stock simulators at sites like www.investopedia.com. On this site your kids can play a variety of games to suit their investment levels and interests. To spark interest, try having your children select stocks in their favourite stores, places or restaurants.
For more online learning, girls 9 to 14 years old can – with some help from mom or dad – create their own profiles online at www.Girlsinc-online.org . The website lets them take part in interactive money games that exemplify how to start a business, save money and make their dough grow.
Lyn Thompson-Alcock, executive director of Girls Inc., York Region, Ontario, says supporting girls and reinforcing that they really can be in charge of their own lives – whether that’s saving up for a Barbie convertible, achieving post-secondary education or going after the career of their choice – starts at an early age and with little lessons.
“If we go on a field trip and the girls are given $5, it’s amazing how many ask you to hang onto it for them, mostly because that’s what their parents would do so they won’t spend it on something silly. Then they have to come and ask if they can buy this or that,” says Thompson-Alcock. “We tell all of the girls to hang onto their money and it’s wonderful to see the look on their faces when they realize that you trust them with it.”
It seems it’s all about providing money life lessons without the lecture.
