Promoting financial savvy among young women is key to their empowerment. When girls learn to manage money effectively, they grow into confident women.

On Women's Equality Day, we celebrate our rights, including the vital right to vote in November, with confidence and assurance.

This confidence, however, should extend to all aspects of life. Despite advancements over the last hundred years in rights related to voting, employment, and reproductive health, the conversation around women and finances often lacks strength.

A study on women's financial confidence revealed a decline even before the pandemic hit. In 2019, only 42% of women felt they had more earning power than in previous years, down from 50% in 2016. Additionally, 47% claimed the role of household financial decision-maker, compared to 51% in 2016. Overall, fewer women reported feeling financially secure (62% in 2019 versus 68% in 2016), and 57% expressed a desire for greater confidence in their financial choices.

This is where we can make a difference. Let’s ensure today’s empowerment continues for future generations by instilling financial wisdom in young women around us — be it daughters, nieces, grandkids, mentees, or friends.

Here are nine ways to inspire their financial confidence:

1. Illustrate the power of compound interest. Show how even small savings can grow significantly over time through interest accumulation. The secret lies in patience and time — both of which she has plenty.

2. Encourage her to prioritize herself. Teach her the importance of the “pay yourself first” principle in personal finance. Whether it's an allowance or her first paycheck, she should save a portion for herself first.

3. Explain the importance of having an emergency fund. Share a relevant story where having savings saved the day. Remind her that even small emergencies, like needing to contribute to a friend's birthday gift, are opportunities for her to manage her finances.

4. Foster her entrepreneurial spirit. Nothing beats practical experience in running a business. Whether it’s an Etsy shop for her crafts, promoting her babysitting services, or selling items for neighbors, let her take charge.

5. Help her practice negotiating for a raise. The gender pay gap remains a significant issue. Fewer women sought promotions or raises in 2019 compared to 2016 (27% vs. 44%). Remind her that she won't receive what she doesn’t ask for. Encourage her to be comfortable asking for a raise, whether discussing her allowance or part-time job pay, so she’s prepared for future negotiations.

6. Teach her about credit scores. Explain that a credit score is an adult's financial report card, reflecting their money management. Mastering this can open doors to better borrowing options.

7. Inspire her to think like an investor. A survey revealed that young men are more likely than young women to have investment accounts. Engaging her in investing early on can significantly improve her financial future. Consider these five ways to introduce stock investing to kids.

8. Discuss the reasons behind family financial choices. Even if you doubt your financial skills, don’t shy away from discussing money at home. Sharing experiences, both successes and mistakes, is invaluable education. Involve her in managing household bills to expose her to real-world financial scenarios.

9. Encourage her to seek and offer support. Empowering women means sharing insights. Encourage her to act as a mentor or ally for others and to discuss finances openly with her peers.

By exchanging experiences and advice, we build collective confidence and continue progressing toward equality.

What financial lessons did you learn growing up? Share your thoughts with us!