Smart Money Smart Kids

Raising the Next Generation to Win with Money

1937077632
Dave Ramsey and Rachel Cruz

Notes

Handing out money and not teaching strong work habits create people who whine, who feel entitled, and who become perpetual victims.

Being able to go into a store and spend their own money is the most powerful way to reinforce the work-money connection.

If your child that age is saving that much money, making big financial goals and reaching them no matter how long it takes, you want him to remember that as a positive experience. [so pay the tax or meet them halfway]

I encourage you to put a cap on how much you match [you don’t want them buying a brand new car, even if they can afford it]

You must teach them that they don’t own the money – that they are simply managers or stewards of it.

The 5 Foundations

  1. Save $500 for an emergency fund
  2. Get out of debt
  3. Pay cash for a car
  4. Pay cash for college
  5. Build wealth and give

You must lovingly guide your “grown” teen in his college choice and field of study. Keep the lines of communication open, and be ready to pull the money away if necessary to save him from himself.

As your child approaches his/her senior year of high school, I want to suggest a new part-time job for her: filling out scholarship applications.

Remind your kids that owning stuff is fine, but whenever your stuff owns you, when you define yourself by a purchase or an amount of money, you are on the road to becoming a disgusting human being.

Communicate to your kids that while they are a treasure and you love them more than life itself, Mom and Dad are first.

  • “Never talk to my wife that way!”