4 things you should teach your kid about money and follow it yourself, too: Dave Ramsey’s golden advice for parents

Dave Ramsey recommends teaching children four balanced money habits. He is the author of the international bestseller, The Total Money Makeover.

Teaching children about money starts with habits, according to author Dave Ramsey. The writer of the international bestseller The Total Money Makeover recommends four lessons for families. Children should learn to work, save, give and enjoy spending wisely.

Parents should practise these habits while guiding children through each area. Ramsey stresses balance rather than encouraging children to save, spend or give everything away.

Work: Connect effort with earnings

Ramsey recommends paying children for completed tasks instead of giving them money without conditions. This helps them understand that income comes from effort.

Tasks should suit the child’s age and abilities. Simple activities, such as sweeping the kitchen or carrying plates, can introduce this connection.

During a The Ramsey Show episode on YouTube, Rachel Cruze spoke about her 5-year-old daughter, Amelia, earning money through household chores. Amelia then used her earnings to buy a Polly Pocket toy.

Rachel Cruze, Ramsey’s daughter, co-hosts the show with her father.

Ramsey said earning through work brings dignity alongside money. Parents can encourage that satisfaction by recognising effort and explaining how earnings are received.

Save: Learn to wait for goals

Children should learn to set aside money for something they want. Saving for a toy introduces patience and the idea of working towards a goal.