Smart Money, Smart Kids

Raising the Next Generation to Win with Money

by Dave Ramsey , Rachel Cruze

Number of pages: 256

Publisher: Lampo Press

BBB Library: Parenting

ISBN: 9781937077631

About the Authors

Dave Ramsey : Dave Ramsey is the author of the New York Times bestselling


Rachel Cruze : Rachel, Dave Ramsey's daughter, grew up learning how money works. She


Editorial Review

There are two distinct extremes when it comes to parenting. First, there are the straight-laced, locked-down, rule-setting, control-freak parents who try to force their kids into a tight little box where they have no opportunities to make any decisions on their own. Some of these kids grow up, run off to college, and go completely crazy. That's because they've never been given an ounce of freedom. They simply don't know how to make good decisions because they never had the chance to make any decisions. Then there are the parents who seem to drift through life with no clear plan or boundaries; no rules, no guidelines. They let their children go freely. Those are the kids you see at restaurants screaming and throwing silverware across the table while the parents sit there, seemingly clueless, as they enjoy what they think is a nice, quiet dinner. Those kids cannot make good decisions because they've never been made to behave. Lucky for the next generation, these are not the only two options. There's a middle ground where your kids will be ready to accept responsibility of adulthood someday. It's a balance between enforcing strict rule-following and allowing personal responsibility.  

Book Reviews

"The authors, Dave Ramsey and his daughter, Rachel Cruze have taken everything they know about leading people to financial peace and are now helping parents lead a new generation to become debt-free. The insights and expertise they share arepriceless." Guard the Door

When it comes to children, Ramsey and Cruze write, work should not be a "four-letter word. Let kids earn money for doing household chores. The Ramseys prefer using commission, rather than allowance, because it conveys the difference between earned and entitled

"Children should be given a commission for chores they do, not a free allowance. They need to be taught how to spend wisely, how to save and how to give. And they can learn all these principles starting at an early age."

"in Smart Money Smart Kids, Dave Ramsey’s daughter, Rachel Cruze gives insights and practical advice to raising money-smart kids. Especially as we talk about how we want to instill financial values in our kids." Word Pres

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Wisdom to Share

One of the greatest gifts you'll ever give your children is preparing them to thrive as adults.

You can't defeat materialism in your kids if you are infected byit yourself.

Showing your children how blessed they are no matter how much they do or don't have.

A content person still wants to do better and be better; he's just not pinning all his hopes and dreams on that one thing.

In a nonstop, frenetic world like ours, sometimes we confuse contentment with a lack of ambition.

There's always an upgrade; there will always be a new "next big thing" fighting for your child's money and attention.

The very purpose of marketing is to make you think your life is somehow incomplete without the purchase of a product or service.

Children who can learn to plan are more poised and confident because life is not always happening to them – they are happening to life.

Teaching children to budget is simply teaching them to plan.

Proactive people are forward-thinking people, so they are seldom victims of circumstances.

People who win learn to happen to things rather than to react when things happen.

Whether you’re fourteen or forty, a budget represents intentional living.

They get to learn that “a budget” creates boundaries and limitations.

By teaching your children to work and divide their money among the Spend, Save, and Give envelopes, you’re already teaching them the basic framework of budgeting.

Encourage your kids to find ways they can serve by doing things they already enjoy and are good at.

People often get confused about what giving really is.

That's not to say that every young person on the planet is selfish and greedy, but let's face it: The act of giving isn't always the first thing they think about.

If you want children who are not selfish, and who view wealth as a responsibility, then you must teach them that they don't own money – they are simply managers of it.

The strongest impact on children, though, is when they hear and see a consistent message from their parents.

What your kids see you do is a lot more powerful than what they hear you say.

Slowing down and saving up to buy things teaches them to make wiser, less spontaneous purchasing decisions.

Technology keeps feeding our get-it-now attitudes.

We live in a culture of instant gratification.

You can teach your child to make wise purchases by gathering a ton of information.

Try using the envelope system along with the monthly budget.

The most important thing to do when it comes to teaching your children how to be wise spenders is to be a wise spender yourself.

Be an example. Your kids are watching you.

It’s easy to forget that money has limits.

Money is finite. That’s something a lot of people have trouble remembering these days.

Start teaching your children about what to do with the money they’re making.

An income of only home-based money gives your teens a safety net. That's both good and bad.

Getting paid once a week teaches kids lessons in delayed gratification and patience.

These non-paid chores help teach kids how to be good citizens who willingly volunteer to help others.

You want your kids to understand that money comes from work, but you don't want to go so far that they end up thinking they should get paid for everything they do.

there will always be things kids should do around the house just because they're a member of the family.

As your children grow, the chores, responsibilities, and the money amount should grow to reflect their ability.

Children need that connection between the work they did and the money you're handing them.

You want each job to be enough that it feels like a big accomplishment, but not so much that it seems complicated.

The worst thing you can do is become a human ATM and give your kids money every time they ask.

Once kids understand that money comes from work, they won't be able to spend money on a toy without considering how much work went into actually making that money.

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

They expect their parents to keep paying their bills into adulthood, or they think the government exists to care for them.

The allowance system doesn't teach the child how real life works.

When your kids learn hard work from a young age, the habit will stick with them for life.

Work might be a challenge for your children, especially if they aren't used to it.

You should view teaching your children to work as a necessary skill for life.

Work gives them both dignity in a job well done today and the tools and character to win in the future as adults.

Many parents today are so centered on what their children want that they have lost perspective on what their children really need.