How Do I Teach My Kids About Money?

“How do I teach my kids about money?”

It’s a question my dad, Dave Ramsey, and I get asked all the time. And it’s a topic that has mostly been ignored by our culture. But not anymore.

In April, my dad and I will release our book, Smart Money Smart Kids. We’ll show parents why it’s important to teach their kids a healthy view of money—and how to make sure they grow up as money-smart kids.

You’re going to love this book, especially if you’re a parent! You’ll learn a lot about why your kids need to learn the principles of working, spending, saving and giving at an early age.

The best thing you can do for your kids is to help them start putting their common sense into practice. You’ll do that by teaching them these basic principles of money management:


We talk about it all the time—your most powerful wealth-building tool is your income. That goes for both kids and adults. The 6-year-old you teach to save for a bicycle will eventually turn into a 17-year-old who is eager to save for college.

Pay commissions, not allowances. Your kids get commission for doing chores around the house like taking out the trash, feeding the dog, and helping with the dishes. Instead of simply giving your kids money for breathing, give them money for being productive around the house! That’s how they’ll learn discipline and work ethic.


Priorities. Priorities. Priorities. Making money shouldn’t be a license to go spend it all right away. Too many kids and teenagers make $50 and spend it within a day on something they will have forgotten about a month from now.

As a parent, how can you make sure your child understands how fun it is to spend while also remembering that our next subject comes first?


Yep, saving. It can seem so boring. But believe me, it’s one of the most important things you can teach your child. If your child heads off to college without understanding the principle of saving, then he or she will most likely graduate with a lot of debt.

Start early. Use a piggy bank or, even better, a clear jar so they can see their money growing. Once they are old enough, open a basic savings account.


Giving is what it’s all about. The point of building wealth is to change your family tree and give a bunch of money away. The earlier your child gets that, the better they will be in the long run.

Help them pick a charity to support and teach them about tithing. Instead of just giving them a dollar in the church parking lot, let them use their own money to tithe. That’s when they’ll really feel the impact of giving!

These are the basics—simple principles you can teach your kids at an early age.

Remember, keep reinforcing the importance of working, spending, saving and giving throughout your child’s life. Don’t simply sit them down for one discussion and leave it at that. Look for teachable moments.

Talk about money as often as they want to, and be available for questions. Before you know it, you’ll be raising a money expert!

Learning how to teach kids about these important money principles is exactly what you can expect from Smart Money Smart Kids. Get your copy today!