Dave Ramsey is knownby many as a household name. Some of you may recognize phrases like “totalmoney makeover” and “act your wage.” The advice he gives via his radio show,eight books, classes, and social media presence has helped over six millionpeople worldwide get their finances under control. That is no small feat in theculture we live in today, where debt is a given and financial stress wreakshavoc on our relationships and our health. As a father of three, Ramsey makes sureto include the whole family in his financial makeover plans. Plenty of callersto his radio show request help for situations like adult children living athome past a reasonable age and circ*mstance; how to create a will; and how toteach kids to save more wisely.
I relate to thosecallers, in the sense that teaching my son about money makes me nervous. It’s adaunting task when my relationship with money is more akin to codependency thananything resembling health. I have credit card debt, a mortgage and car paymentsto make, and the most toxic part of all is that I find spending therapeutic.I’ve grown enough to be aware of this about myself, and I am doing what I canto change. That’s where the Ramsey family comes in.
Myfirst encounter with Ramsey was through his third book, Smart Money, Smart Kids: Raising the Next Generation to Win WithMoney, co-authored by his daughter Rachel Cruze. Cruze is touted as a“seasoned communicator” on Ramsey’s website, which really means she’s anauthor, speaker, radio and TV personality in her own right[VK1]. I wasn’t sure what to expect from the powerful father-daughter duo,but this skeptic has to admit, I did take away some great tips in the quest toraise my five-year old son to become a financially responsible adult.
Partof what makes Ramsey so successful is his down-to-earth, fatherly approach. Smart Money, Smart Kids is an easy read,that is exactly what fans of Ramsey have come to expect, with a wealth of ideasfor teaching your children to have a healthy relationship with money. The chaptersare dedicated to a different financial topic, such as colleges and budgeting.Each one is discussed with sage advice, tough love, charming Tennessee humor,and Ramsey family anecdotes.
Here are just a few of the tips I amimplementing in my household :
- using debit not credit
- saving up the cash to buy thingswithout a loan (yes, even college tuition)
- giving my child responsibility forseveral chores and paying him on commission
- not rescuing him from every baddecision he makes
- make sure I model healthy spendingand charity
At times it can read a bit harsh, but that’swhy it’s important to know your child and know when a little grace is needed.My favorite quote is the question Cruze poses us: “Is this helping my childbecome the self-supporting, healthy, mature adult I want them to be?” If theanswer is no, then obviously don’t do it. Sometimes a “yes” answer to thisquestion is all it takes for me to lose the guilt and stick to my guns evenwhen it’s a hard lesson for my son to learn in the short-term. It’s soimportant as a parent to keep an eye on the day-to-day messages we are sendingour kids through reflection and self-awareness. This book gives you ways to bemore intentional with the financial messages you may not even realize you’resending.
A strong Christianworldview is the foundation for some of the principles they have to teach, butthey never speak exclusively to those who agree with them on religion. It isclear they want their advice to be helpful to any and all people who need it.Let’s face it, a good majority of us could use a financial wake-up call now andthen! This father-daughter pair makes it their business, literally, to deliverthose calls.
The format of Ramseywriting part of each chapter and his daughter Cruze writing the other is both ablessing and a curse to the work as a whole. On the one hand, it is helpful tosee what a child’s perspective is on the principles outlined in the book. Cruzeis honest in her experience of being raised by a financial guru, which isn’talways rainbows and sunshine, of course. The story of a very young Racheleagerly spending her money too fast at a carnival and being refused extra cashthe entire visit comes to mind in particular. However, the pair of them end upspending so much time praising one another that there were several pages wheremy eyes began to glaze over. At times I almost felt like a third wheel.
Tohelp balance the cheesiness, Dave Ramsey is quick to remind us of his flaws andmoney mistakes, like his bankruptcy in 1988 after becoming a millionaire. Heoften writes that there were times he went too far or not far enough. The lastchapter is even titled, “I Was That Dad,” in which he reassures us that he wasjust like us once upon a time. The implication is, if he can take a dreadfullyunhealthy relationship with money and turn it around to become a millionaire asecond time, then surely we can too. Lucky for us, he learned from thosemistakes and went on to share those hard lessons with millions. I personallywish it was delivered in a more concise package, but I’m glad it was deliveredat all.
Iftime is money, then I found this book a worthy use of both. Not only am Ipromptly starting my son on a “commission,” not allowance, I am looking formoments in our everyday lives to instill a healthy respect for what money isand is not. Money is not our master, and we do not have to live as slaves todebt. We are taking back our financial power, one step at a time, and showingthe next generation how to be financially free.
Sources:
Ramsey, Dave, and Rachel Cruze. Smart Money Smart Kids: Raising the next Generation to Win with Money. Lampo Press, the Lampo Group, Inc., 2014.
DaveRamsey.com
RachelCruze.com
