By Gabrielle Olya
This article also appeared on MSN Money and GoBankingRates.com
GOBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall. Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
In today’s column, we chat with Urban Adams, an investment advisor at Dynamic Wealth Advisors and the father of three young adult daughters. Here, he shares the financial lessons he taught them, his advice for other parents who want to raise financially savvy females and how being the father of daughters affected how he advises others in his practice.
What are the most important financial lessons you taught your daughters?
There are quite a few I taught them, [but the most important were] 1) wants versus needs, 2) saving for larger purchases, 3) independence by having their own money, and 4) awareness of what was saved for college for them.
Whenever a financial lesson to be taught presented itself, I would discuss it with them individually or as a group. More specifically, one example was opening checking accounts for them at the local credit union when they each turned 13. This got them comfortable with using a debit card, managing the balance, spending, etc. When each got their first job with W-2 income, I helped them open a Roth IRA to begin saving for retirement.
As the father of daughters, it was important for me to set them on a path to being financially independent. I have told my daughters numerous times over the years (they are 18, 19 and 21 now) that I will teach them the tools to be financially independent — with the aim of not having to be dependent on a mate or partner. More personally, I’ve told them many times over the years that the only male they would ever be financially dependent on was me — and I was teaching them the lessons that would help them avoid being dependent on anyone.
When should parents start talking to their daughters about money?
It should start as soon as they start using money. Based on my experience, my daughters all learned at different paces. Until they recognize the “value” of money, it is difficult to teach some lessons. As a result, there is not a clear-cut age per se. Once they recognize that value, it becomes easier to teach the lessons.
How has being the father of daughters affected how you advise others in your practice?
It has had a great deal of influence. In addition to my career, I have coached female youth sports teams for over 15 years. My role as a father, advisor and volunteer has no doubt molded my communication style.
I have also learned that many of my female clients in their 20s and 30s do not always have a great deal of financial knowledge when they first meet with me. And my goal for those clients is the same as for my daughters.
Investment advisory services are offered through Dynamic Advisor Solutions, LLC, dba Dynamic Wealth Advisors, an SEC registered investment advisor.
Photo: Adobe Stock
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