How do we raise the next generation to win with money? New York Times best selling author Dave Ramsey and his daughter Rachel Cruze say you can start teaching money matters to children as young as three.
Like her father Rachel Cruze writes, speaks and broadcasts messages about winning with money.
Now Cruze and Dad Dave Ramsey have written a book together, Smart Money Smart Kids reads more like a how to money manual for moms and dads.
Cruze sat down with us backstage. She says too many parents are making the mistake of not teaching their children about money because they don’t feel confident in doing so.
She explains moms and dad can impart basic lessons on saving and spending as early as three.
For three to five year olds she suggests minor chores like helping to put the laundry in the basket or picking up toys in their room. She encourages parents to make the link between work and money by immediately placing some change or a dollar in a clear plastic jug in the child’s room so they get a visual on what they are earning.
For kids ages 6 to 14 Cruze advises creating a chore chart and once the chores are checked off parents pay once a week. Chores are over and above the normal family help like cleaning off the table or making the bed.
Follow up by setting up a simple envelop system so the money is divided up into categories for saving spending and giving.
In their book, dad and daughter suggest parents have older children pay for at least a portion of their first car. Having them save for something is big. It teaches delayed gratification and patience.
In the Ramsey household Dave offered to match each of his kids's savings at 16 to help them buy a vehicle.
When it comes to the college years and paying for college Cruze admits her advice is counter culture. With 1.3 trillion dollars currently owed in the United States on student loans Cruze suggests ways to get around graduating with debt.
Among them, have your kids stay in state for school, go after scholarship and grant money with a vengeance and have the student work part time to help cover expenses.