Interview with Dave Ramsey: Financial Advice for Families

As a father of 3, nationally syndicated radio talk show host and financial expert, Dave Ramsey, has created a number of children’s products focusing on the topic of money. We recently had the chance to review his line of Junior’s Adventures 6 Kids Books – Boxed Set.

The books follow Junior in his life adventures as he learns the best ways to handle money. From working and saving to giving and spending, the book teach children ages 3 – 10 all the realities of money in ways that they can relate. We read these books to Kora & Logan and will be hanging on to them to read over and over again as they get older – hoping the valuable lessons sink in.

Dave Ramsey took a few minutes to answer some questions about the books, how to teach our kids to be smart about money, and as parents how to save for our children’s futures.

Tired Mom Tésa: We have been enjoying your books. What prompted you to write them?

Dave Ramsey: Adults are always saying, “I wish I had learned how to handle money before I made mistakes.” It’s never too early to start teaching kids about money. Some of the stories about Junior came from raising my own children. Careless at the Carnival was born out of a trip to the fair with my daughter. She ended up spending all her money on a silly game and didn’t have any leftover to do other things. I started realizing that’s it’s never too early to start talking to our kids about money. We can find teachable moments everyday.

Tired Mom Tésa: What advice would you offer to parents of preschoolers? What should we be doing know to help them be financially savvy in the future?

Dave Ramsey: Children as young as three years old can understand some of the basics of money like work, giving, spending and saving. Our children’s books are a good start for many families to get the money dialogue going.

Tired Mom Tésa: What is your opinion on giving children an allowance? If you think it’s a good idea at what age should we start?

Kids need to be put on commission. Life won’t make allowances for you so I don’t recommend giving them an allowance. With the commission system, kids learn the connection between work and money. The lesson is simple: Work, get paid. Don’t work, don’t get paid. It forces them to realize the result of their choices. I’m not talking about a boot camp for kids, but age appropriate chores with dollar amounts attached to them create teachable moments.

Tired Mom Tésa: Again as parents of preschoolers, what do you recommend as the best way to save money for their college years?

Educational Savings Accounts and 529 plans are great places to invest money for your child’s education. But make sure you understand the terms of the account!  You need to be able to make decisions about the money as time goes on rather than leaving it up to a plan administrator and a standard formula. You need to be able to control the money.

Tired Mom Tésa: Thank you for taking the time for this interview, Dave! We hope to apply this valuable advice and to raise our children to make wise financial decisions.

Junior’s Adventures – 6 Kid’s Books Boxed Set is available at Dave Ramsey’s Online Store. To learn more about Dave Ramsey, his classes, products, show and more visit www.DaveRamsey.com.

The books were provided for review. No compensation was received.