Investing

Parents teach daughters to save their money and sons to invest it

By: Lisa Coxon on January 14, 2019

Parents are teaching their sons and daughters different lessons when it comes to personal finance, according to a survey done by Giftcards.com.

The gift card website surveyed 1,000 American parents on their approach to money with their kids and found that when it comes to daughters, parents tend to instill lessons on how to save money, whereas with sons, they’re more likely to give them the education needed to grow their money over time.

By the time they get to high school, 61% of boys have learned about credit scores from their parents, compared with 46% of girls.

Girls were nearly 14% more likely than boys to receive instruction on how to track their spending, and 5% more likely to be taught how to budget by the time they reach high school.

Boys were 9% more likely to be taught about taxes, 3% more likely to be given an explanation about credit cards and 2% more likely to learn about investing.

According to the survey results, the gender pay gap starts at a young age. Boys are given $1 more on average in allowance throughout middle school and high school and they earn $2 more on average than girls for doing chores during their elementary school years. Once they hit high school, they’re earning $3 more on average.

Girls seem to be the top chore earners only during their middle school years, when they earn $3 more on average than boys.

“Girls are paid less, and are taught that they need to save and budget, while boys are paid more and taught about investing and credit scores,” Bri Godwin, a media relations associate for Giftcards.com, told Fast Company.

Teaching girls financial restraint appears to be working, though. Nearly 68% of parents surveyed said they require their children to save money throughout elementary, middle, and high school. Boys generally saved less throughout middle and high school years. During middle school years, for instance, girls had saved $104 more on average than boys.

When cash gifts and money earned for good behaviour (such as for completing chores or getting good grades) is combined, the typical American child receives around $600 a year.

Some experts say the difference in financial lessons given to boys and girls can set them up for very different views of wealth ownership as they get older, which could be problematic.

“Women will always think, especially if they have children, that their money is for their parents, their spouses, their brothers, their sisters, their pets, and everybody but them, because a woman’s nature is to nurture,” Suze Orman, author, television host, and financial adviser, told Fast Company. “Men, on the other hand, know absolutely that the money that they make is for them; they don’t have trouble saying no, they have no problem keeping it for themselves, investing it for themselves, and not sharing it with their spouses.”

 

Comments