Kids and Money
Most kids think money grows on trees. But Lindsay Moore's parents say she knows better because they started teaching her about it at age three.
Bestselling author and financial advisor Dave Ramsey has helped millions of adults get their money in order. He also has a program tailor made for kids.
"The money series we have on Dave Ramsey's team is called Financial Peace Junior," said Rachel Cruze, Dave Ramsey's daughter. "It's everything from a chore chart where kids learn how to do commission verses allowance working for their money. Everything from savings, spending, giving, goals that happen with money."
Rachel Cruze -- Dave Ramsey's daughter -- teaches money lessons to kids and teens.
"It's so important for parents to teach their kids this message. This stuff becomes a part of your life, it's a habit, you don't have to change your lifestyle. As a 3, 4, 5, 6 year old you are teaching them work equals money and what do you do with that money?," said Cruze, "You give first, you save up for things you want and then you can spend some. The simple principals become ingrained in who you are -- that's your lifestyle with money."
The principles of giving, saving and spending -- something five-yea- old Lindsay has already figured out.
"If I want to save money I put it in my piggy bank," said Lindsay. "I like saving money because after I get a lots of money, I can give it to someone."
Lindsay's mom Meredith says using the program to teach her daughter was pretty basic.
"She doesn't do her item. She doesn't get paid. If there is something she wants at the store she has to wait," said Meredith. "We also wanted her go get the concept of reward. If you work hard you are rewarded for your work and if you don't work hard you are not rewarded for your work."
There are also cartoon books to help illustrate money lessons in a way kids can understand.
"She loves the books, to read about Junior and the adventures of Dollar Bill. She has really related to that," said Meredith.
Nine-year-old Amy Carrillo has been using the program for about a year.
"Just doing it month by month and I haven't stopped. I have never stopped. I just kept on going," said Amy.
Amy's dad -- Richard -- says money management is something he wanted his daughter to understand early.
"I feel it's important to teach your children this because you need to teach your children responsibility. You can't depend on anybody to bail you out," said Richard.
"I used to not get paid for doing my chores but now ever since we started doing Financial Peace," said Amy. "I've been doing a lot more chores and I've started to get a lot more money now."
"The chores are listed accordingly to what she needs to do, all the prices all that," said Richard. "As long as she completes all the chores every day at the end of the week she will receive her payment."
Right away, Richard and his wife Regina noticed a change.
"She is a lot more responsible with money. She doesn't want to blow it on gumball machines every time we pass them at the store," said Richard.
"I've been looking around at stores and I've been feeling so desperate about buying clothes and toys and all this other stuff, but I have not been wanting to buy that lately. I've been wanting to buy more important stuff. I finally got my money for my Nintendo Three DS, so I'm really excited," said Amy.
And, even at nine, Amy says she is ready to get into the work force.
"When I get a job, I'm happy about that. I'll save up my money like I do right now. For bigger things, better things, like the Nintendo DS," said Amy.
The program teaches basic principles to help parents and kids learn valuable life lessons.
"We work really well together," said Richard. "Amy has learned the 'B' word - budget. When everyone wants to go eat after church on Sundays sometimes it's like sorry, it's not in the budget. She completely understands."
"Once you start your kids on this stuff that's a habit for them," said Cruze. "That's their lifestyle, that's all they know. I'm a living testimony of that."
For more information visit www.daveramsey.com.