Smart Money Smart Kids: Raising the Next Generation to Win With Money
Page 22
A good friend of mine is a Jewish Rabbi, and he explained to me that, in the Jewish mind, money equals life. Therefore, no money equals death. I’m not saying that Jewish people are all about money. Instead, they realize that money gives them the ability to make a life. So for this son to “bury his father” meant his father was no longer in control of his money once he turned it over to his son.
Think about the implications of this cultural tradition. What if you knew from the time your oldest son was born that he would be tasked with taking care of you and your spouse in your golden years? What if the quality of your retirement years was based not on your 401(k) or your real estate holdings but instead on how competent your oldest son was with money? If you knew you were going to have to turn over your very existence and quality of life to that child someday, you would be very intentional about making sure that child knew how to handle money. You would teach him to work, give, save, and spend wisely. You would teach him about investments, taxes, and budgeting. You would teach him about contentment, debt, and generational estate planning. If you knew your quality of life and maybe even your very life depended upon your oldest son being competent with money, you would definitely make sure he was a money-smart kid. So why not be that intense and intentional about raising money-smart kids regardless of your faith or cultural traditions?
You Can Do This
I was that dad who made big money mistakes and failed. But I was also that dad who decided to change my family tree. I was that dad who realized that to financially change my family tree, I had to intentionally raise money-smart kids. Regardless of the stupid financial decisions you have made, you can turn your financial life around. Regardless of how late you begin teaching your kids to be money-smart, there is still hope. You get to decide that starting today, from this day forward, you are going to be intentional about not only your money but also in teaching the next generation.
Speaking as a very proud dad, I will tell you that the payoff is worth the trouble. Sharon and I feel great satisfaction and richness of soul as we stand back and watch how confident and competent our grown money-smart kids are. They are not perfect, but they are really doing well. They stand on their own and appear to have wisdom beyond their years. They are generous, frugal, and intentional in their money decisions. They don’t have a dime of debt. But the most satisfying thing of all is that they are prepared and capable to take on the responsibility and legacy of managing wealth generationally. Rachel and I want that for you. So when your money-smart kids are grown, you can lean back in your chair with pride, knowing they are not only winning, but they are also capable of managing your legacy for generations to come.
This is your legacy. Now go make it happen.
NOTES
Notes
Chapter 3
1. Karen J. Pine, “Report on a survey into female economic behaviour and the emotion regulatory role of spending,” Sheconomics, 2009, accessed June 14, 2013, http://www.sheconomics.com/downloads/womens_emotions.pdf.
Chapter 4
1. “Majority of Americans Do Not Have Money Available to Meet an Unplanned Expense,” National Foundation for Credit Counseling, accessed May 10, 2013, http://www.nfcc.org/newsroom/newsreleases/floi_july2011results_final.cfm.
2. Blake Ellis, “28% of Americans have no emergency savings,” CNN Money, June 25, 2012, http://money.cnn.com/2012/06/25/pf/emergency-savings/index.htm.
3. Stephen Gandel, “Everything You Know About Kids and Money Is Wrong,” CNN Money, July 18, 2006, http://money.cnn.com/magazines/moneymag/moneymag_archive/2006/08/01/8382223/.
Chapter 5
1. W. Keith Campbell, Elise C. Freeman, and Jean M. Twenge, “Generational Differences in Young Adults’ Life Goals, Concern for Others, and Civic Orientation, 1966-2009,” American Psychological Association, 2012, http://www.apa.org/pubs/journals/releases/psp-102-5-1045.pdf.
Chapter 6
1. “2012 U.S. Banking Sector Outlook: Happy Days Are Gone Again,” Trepp, December 22, 2011, http://www.trepp.com/2011/12/22/11707/.
2. Melanie Hicken, “Average wedding bill in 2012: $28,400,” CNN Money, March 10, 2013, http://money.cnn.com/2013/03/10/pf/wedding-cost/.
Chapter 7
1. Blake Ellis, “Class of 2013 grads average $35,200 in total debt,” CNN Money, May 17, 2013, http://money.cnn.com/2013/05/17/pf/college/student-debt/index.html.
Chapter 8
1. Blake Ellis, “Average student loan debt nears $27,000,” CNN Money, October 18, 2012, http://money.cnn.com/2012/10/18/pf/college/student-loan-debt/index.html.
2. Rohit Chopra, “Student Debt Swells, Federal Loans Now Top a Trillion,” Consumer Financial Protection Bureau, July 17, 2013, http://www.consumerfinance.gov/speeches/student-debt-swells-federal-loans-now-top-a-trillion/.
3. “Borrower in Distress: A Survey on the Impact of Private Student Loan Debt,” Young Invincibles, May 2013, http://younginvincibles.org/wp-content/uploads/2013/05/Borrower-in-Distress-5.8.13.pdf.
4. “Trends in College Pricing 2012,” College Board Advocacy & Policy Center, 2012, http://advocacy.collegeboard.org/sites/default/files/college-pricing-2012-full-report_0.pdf.
5. Carol Hymowitz, “Any College Will Do,” The Wall Street Journal, September 18, 2006, http://online.wsj.com/article/SB115853818747665842.html.
6. Zac Bissonnette, Debt-Free U (New York: Portfolio Penguin, 2010), 217.
7. Blaire Briody, “When parents pay for college, could kids’ grades suffer?” The Week, January 23, 2013, http://theweek.com/article/index/239074/when-parents-pay-for-college-could-kids-grades-suffer.
Chapter 9
1. Janine Eccleston, “Why The Halloween Industry Is Worth $8 Billion,” Investopedia, October 16, 2012, http://www.investopedia.com/financial-edge/1012/why-the-halloween-industry-is-worth-8b.aspx.
Chapter 10
1. “More Young Adults Are Living in Their Parents’ Home, Census Bureau Reports,” United States Census Bureau, November 3, 2011, http://www.census.gov/newsroom/releases/archives/families_households/cb11-183.html.
Endorsements
When it comes to great parenting, Ramsey and Cruze have hit the nail on the head with Smart Money Smart Kids. Every good parent should teach his child how to manage money and live responsibly, but until now, there was no manual. This is a top priority read for every parent.
— MEG MEEKER, M.D., author of the national bestseller, Strong Fathers Strong Daughters
This valuable guide, from two different perspectives—that of the parent and that of the child—is a great resource for families. It’s chock-full of easy, practical, and smart ideas on how to raise productive, happy, and money-savvy kids. We’ll definitely take it to heart!
— BRAD PAISLEY AND KIMBERLY WILLIAMS-PAISLEY, Grammy Award-winning artist / actress, director, and producer
One of the bedrock foundations of the Robertson family is passing on values to your children and teaching them how to expand a great legacy. There is not a better family than the Ramseys to teach the importance of passing on the value of handling money and the wisdom of building the right financial legacy. Dave and Rachel show how powerful a family can be when they work together, teach responsibility, and share with others what works and what doesn’t. This book is Miss Kay approved!
— MISS KAY ROBERTSON, matriarch of the Robertson family from A&E’s Duck Dynasty
Thank you, Dave and Rachel, for this rock-solid game plan to teach our kids the value of working, spending, saving, and giving as they grow into adults with financial confidence and integrity.
— ELISABETH HASSELBECK, co-host of Fox & Friends and best-selling author
Finally someone’s written the perfect book to help me prepare my children for a strong financial future. In their book, Smart Money Smart Kids, Dave Ramey and his daughter Rachel Cruze masterfully equip parents to train their children. As a father to six kids, I strongly urge every parent to read this book, apply these principles, and change their family’s legacy.
— CRAIG GROESCHE
L, pastor of LifeChurch and author of the New York Times best-selling book, Fight.
Contained in the pages of this book is the information you and I have been waiting for all our lives. In Smart Money Smart Kids, the father-daughter team of Dave Ramsey and Rachel Cruze moves miles beyond financial theory or interesting ideas. Instead, they provide proof of principles about money that, when harnessed, produce the power to change our families for generations to come. Drop everything. Read this one now.
— ANDY ANDREWS, New York Times best-selling author of The Traveler’s Gift and The Noticer
I can’t imagine a more practical book on a more needed topic. Nor can I imagine a better team to write it. Thanks, Dave and Rachel. We will put your work to good use!
— MAX LUCADO, best-selling author of You’ll Get Through This
Practical, relevant, and encouraging. My only wish is that I had this twenty years ago when we were raising our three sons!
— STASI AND JOHN ELDREDGE, New York Times best-selling authors of Captivating and Wild at Heart
For years, our friend Dave Ramsey has taught us, inspired us, and at times threatened us to get our financial house in order. As if that wasn’t enough, now he wants to brainwash our kids as well! And I’m so glad he does. In Smart Money Smart Kids, Dave and his extraordinary daughter Rachel Cruze team up to help us begin creating healthy financial family traditions. You’re going to laugh, cry, and then come up with a plan to raise money-smart kids—a plan that will allow the generation coming along behind you to be ahead of you in one of the most critical arenas of life.
— ANDY STANLEY, senior pastor, North Point Ministries
Dave Ramsey has created a financial system and tools that, if followed, will SAVE our economy. His daughter Rachel has been tutored in that gospel since birth. This book should be required reading for every parent that doesn’t want to spend their retirement asking their 20-something-year-old child when they are going to move out and get a job!
— SHAY CARL, YouTube personality and co-founder of Maker Studios
Dave Ramsey has more practical insight into money management than anybody on the planet.
— PASTOR RICK WARREN, founding pastor, Saddleback Church, P.E.A.C.E. Plan
It’s no surprise that Dave Ramsey and his daughter, Rachel, have put together a powerful book with practical ideas. With seven children in the Miller home, we’re implementing Smart Money Smart Kids tactics and strategies and getting outstanding results!
— JOHN G. MILLER, author of QBQ! The Question Behind the Question, Outstanding!, and Parenting the QBQ Way
We have had the pleasure of knowing Dave Ramsey and his daughter Rachel Cruze since we moved to Nashville. You should know that after hearing Dave on the radio all these years that they actually live their lives the way he inspires us to live ours. Now Rachel joins her dad in the family business and writes this book that will help our children better understand money and how to build their lives with a richer understanding of financial responsibility. They talk the talk and walk the walk. Let’s share this book with our kids and inspire them to run for Congress.
— TRACIE AND SCOTT HAMILTON
If you want to impart skills to your children in spending, saving, and giving, look no further than Smart Money Smart Kids! Dave and Rachel brilliantly present their plan with stories and hard-earned wisdom that will keep you flipping the pages for more. This book is a must-read for every parent wanting to extend grace while instilling the unchanging axioms of money management.
— EMERSON EGGERICHS, PH.D., author of Love and Respect in the Family
Table of Contents
Dedication
Acknowledgments
Contents
Introduction
I Was That Little Girl . . .
Work
Spend
Save
Give
Budgeting
Debt
College
Contentment
Family
Generational Handoff
I Was That Dad . . .
Notes
Endorsements
Table of Contents
Dedication
Acknowledgments
Contents
Introduction
I Was That Little Girl . . .
Work
Spend
Save
Give
Budgeting
Debt
College
Contentment
Family
Generational Handoff
I Was That Dad . . .
Notes
Endorsements