Being a parent means you are constantly unsure if what you are doing is wrong or right (as if those words can be clearly defined. I mean – there are definitely some WRONGS to parenting, but some of the rest just feels like it could be wrong (juice boxes, after school care, too many or not enough extracurriculars). When it comes to parenting and MONEY there are so many questions. Do you pay your child for chores, do you use a chore chart, are good grades worth paying for, what is the policy for turning 16 and getting a new /used/hand-me-down car, how will college be funded, and what about weddings? Is your head spinning just thinking about that? It definitely gives me the start of a headache…or maybe an panic attack. That is why I am currently reading books written by experts on how they handled finances with their children.
My girls are almost 8 and 6-and-a-half. The years between now and driving are going to blur. One book that I recently read is Smart Money Smart Kids written by Dave Ramsey and his daughter Rachel Cruz. It is a must read for all parents who have kids from birth to college.
Over the years we have cleared our debt, built an emergency fund, and accumulated money in our savings account. Wouldn’t Dave Ramsey be proud? When I am at my running group my ears tune in to the conversations about cars, college, and weddings since those are major dollar sign events. Everyone has a different approach to these events, but what does a financial guru do? Dave and Rachel chronicle how life was like growing up in the Ramsey household. Children used a commission (similar to our Responsibility Chart for Kids printable) and were encouraged to Give, Save, and Spend. The kids were given a budget for clothing at an early age.
A few categories that I really paid attention to were cars, college, and weddings. The Ramsey’s matched their child’s savings for a car. If a child saved $5,000 then they matched $5,000. That is simple way to do it! Your child will learn the value of money before leaving for college. College tuition was paid for based on in state tuition. One check was given to cover the wedding expenses. Whatever was left over (if anything) from that money was theirs to keep.
Smart Money Smart Kids Overview
Dave Ramsey and Rachel Cruze teach parents how to raise money-smart kids in a debt-filled world.
Financial guru Dave Ramsey and his daughter, Rachel Cruze, team up to teach parents how to “raise money smart kids in a debt-filled world.” Starting with how to teach your children to work, and continuing through what your child should do with their hard earned money (spend, save, give), Dave and Rachel talk about the principles of good money management for children as well as giving the reader plenty of stories of what life was like for the Ramsey kids. The second half of the book dives into more advanced issues such as how to be debt free for life, including how to go to college debt free.
My Thoughts on Smart Money Smart Kids
The information presented in this book is not new. This information applies to children and helps prepare their futures so they can live debt free. This book gives us insight in the lives of the Ramsey children as they grew up. Isn’t that what we really want to know? How DO the financial guru’s children grow up? Do those families practice what they preach. Dave and Rachel teach us how to teach our children through practical tips. When children younger than 6 are saving money it is best to keep it in a clear container. Six to thirteen year olds need to set small savings goals such as saving for a toy or video game. Children ages 14-18, need to learn how to save for something big, such as a car or college. What you end up with is a very practical guide for how to train your children to handle money at every age.
I learned so many things from this book and have told many people that they need to read it. That includes you! Change your family history with money and give your kids the tools today to have a debt free tomorrow. Order Smart Money Smart Kids today…or check it out from your library!
Check out other great Ways I Save.
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