It is so important that we teach our kids how to manage money. This is an area that many parents feel incompetent in, and are therefore hesitant to approach with their kids. Unfortunately, no matter whether you have your kids in private, public, or home school, this is a topic that is probably not being covered in school. Therefore, it’s up to you to teach this vital life skill to your kids. Dave Ramsey and Rachel Cruze have written an excellent resource, Smart Money, Smart Kids: Raising the Next Generation to Win with Money, to help us know how give our kids the financial training that will prepare them for real life.
This book walks you through teaching your kids the correlation between work and making money, what to do with money (spend, save, and give), and how to budget money. Rachel and Dave give tips to teach kids how to do these things in ways that are age appropriate, for preschoolers to high schoolers.
Smart Money, Smart Kids devotes a whole chapter to the problem of how to save money to pay for college (and cars and weddings!) or what to do if you have not saved for college and you have a seventeen year old with college aspirations. Full of practical tips, this chapter is empowering to parents and students as it encourages us that debt is not a necessary evil if one is going to go to college – there are other ways!
Because of the ages of my kids, the most applicable part of the book for me was about teaching my kids to work for their money. While my kids have been doing chores and getting “commission” at the end of the week, this book has encouraged me to make an even clearer connection between work and money. Dave and Rachel suggest coming up with a chore chart with each chore earning a certain amount of money. Kids check off the chores that they complete each day, and at the end of the week they get paid only for the chores they have done. Not only does this help to cement the concept of money being a direct result of work, it also helps to cut down the need for nagging. Freedom! I also appreciated the chapter on teaching contentment within the family setting.
Overall, this is a great book full of practical tips, encouragement, and inspiring examples. When it comes to something as important as teaching our kids about finances, it is essential that we have a do-able game plan. That game-plan is exactly what Smart Money, Smart Kids offers.
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