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View Full Version : Kids Money Books? (Dave Ramsey-type)


blackforest
09-04-2008, 06:00 PM
The reason I ask is because of something that our DNiece has recently accomplished. At 20 she has bought her first home, on her own. We are SO pround of her! She has a great job as a dental assistant, and the job is paying for her continuing education. She has paid for her own cars, yes I said cars. Paid off the first one, sold it for more that what she paid and got a better, more fuel efficiant one. Contrast this to her older sister (same parents), who lets money roll through her fingers like water. Wanted a $300 rocker for her first child. Her mom (my DSil) found the EXACT same one, almost new, at a garage sale for $50. DNiece refused, because the new one was new!

I will be the first to admit, I am horrible with money. I was never taught how to budget or save. All my money went to my expenses when I was at home (16-18 y.o.), then with college I had no money but lots of CC debt! My Dh is great with money and is so on top of things with our finances and savings etc. that over the 20+ years of marriage I have become a better and smarter money-manager.

So, with all the talk of saving money and budgeting, I would really like to get my kids started off right. We have 2 DDs, 13 and 6. DD6 doesn't really have a concept of "money", but she does know the word no and most of the time doesn't get something just because she wants it.

However, DD13 is to the age when this needs to kick in. She gets her weekly allowance (now that school has started again) of $20. Of that $20; $10 is for her school lunch for the week (she gets to keep the extra if SHE packs her lunch-the food is there), $5 goes into her savings account, and at least $2 (her tithe) goes to church. She has chores which is part of being in the family and she can earn extra money for going above and beyond her chores or babysitting DD6 (however the abysitting is not always paid).

But, whenever she has a bit of money it is spent. Of course I control where she shops and she has been known to save for a bigger purchase (such as, name brand clothes that I find too expensive).

Both girls have college accounts that we pay into and cars will become an issue down the road.

So, my question is, are we on the right course for our kids to learn the value of money? Learning that they should handle their money and not let the money handle them?

I want this to become a no-brainer for them when it comes to finances and their futures. TIA!

blackforest
09-05-2008, 04:29 PM
bump!

RN01
09-05-2008, 05:32 PM
We have the kid Dave Ramsey books and they are really nice. We have 3 girls ages 3, 11, and 14. The 14 year old is past the age to try to change her thinking on money. She doesn't want anyone telling her what to do with her money although I do make suggestions. I'm hoping I can teach the 11 and 3 year old more about it. I don't know how many times I wished I had started the Dave Ramsey way of thinking when I was in high school. I'm 37 and I would have my house paid off and tons of money in the bank. We've been doing Dave Ramsey for about 5 years so things are getting much better but you can't help but think what could have been...
By the way, if you ever get a chance to see Dave in person, he puts on an awsome show.

RitaE
09-05-2008, 07:01 PM
Well, my teen is a huge fan of the Automatic Millionaire book. It most likely wouldn't be over the head of your 13 year old. The main theme of the book is, whenever you get money - save a part of it.

There is a new campaign being put out by the AICPA - feedthepig.org
It is supposed to be geared toward 25 to 30 year olds but I bet if you went to that website you might find some good material.

The Motley Fool staff wrote a book a couple of years ago that is pretty solid
http://www.amazon.com/Motley-Fool-Investment-Guide-Teens/dp/0743229967

I think the big thing with kids is to actually give them some money to manage, and let them learn how to do it hands on. I love those divided banks that have two sides - Spend and Save. Kids can start by saving with their banks and grow that to $50 or so, then they can get a bank account and grow that to $500, then they are ready to move into mutual funds and more sophisticated instruments.

tinkerjess
09-05-2008, 08:37 PM
:scared1: wow im a dental assit. and i make $11.00 hr. i have been w/ the same dentist for 4 1/2 yrs now started off at $7.50 what is she making? things are tight here even w/ husband making $$$$!! i don't see how she is making that much money:confused:

kellia
09-05-2008, 10:28 PM
We have the kid Dave Ramsey books and they are really nice. We have 3 girls ages 3, 11, and 14. The 14 year old is past the age to try to change her thinking on money. She doesn't want anyone telling her what to do with her money although I do make suggestions. I'm hoping I can teach the 11 and 3 year old more about it. I don't know how many times I wished I had started the Dave Ramsey way of thinking when I was in high school. I'm 37 and I would have my house paid off and tons of money in the bank. We've been doing Dave Ramsey for about 5 years so things are getting much better but you can't help but think what could have been...
By the way, if you ever get a chance to see Dave in person, he puts on an awsome show.

Where did you get the books? We took FPU this year and they were talking about having a teen one in the fall, but doesn't look like it's going to happen. Can I get them somewhere else? I totally agree about wanting to get my 13yo to pay attention to that. She just blows her allowance on junk. :eek: I did show her the investment comparisons in our book between a kid who starts out at 18 and invests something like $1000/year for 10 years and then stops and another one starts later and invests more and still don't match the first person. That did get her attention!

rluey29
09-05-2008, 10:40 PM
To the people who say that they can't change the minds of their older kids and teens about money, why not make it a rule that they MUST save a certain percentage of any money that they get whether it be allowance, gift money, or anything else? That is absolutely what I will do when mine are at the age to handle money. I only wish my parents had done that to me!

delmar411
09-06-2008, 09:38 AM
I've read that Motley Fool book for teens. I actually picked it up for DD at the library book sale and read it first to see when it would be good to give it to her. I really wish it had been available when I was a teen. So much great information and advice.

I'd suggest checking out a few different books from the library and reading them yourself before deciding on one or two that would be good keepers.

~I also want to suggest that you rethink how you are looking at her allowance. I dont' want to debate your family's choices but I do want to point out that double tithing on the same money isn't exact what the church had in mind. ;)

ceecee
09-06-2008, 09:50 AM
:scared1: wow im a dental assit. and i make $11.00 hr. i have been w/ the same dentist for 4 1/2 yrs now started off at $7.50 what is she making? things are tight here even w/ husband making $$$$!! i don't see how she is making that much money:confused:

I was thinking the same thing....she must be making a lot more than the dental asst. in my area!

blackforest
09-06-2008, 01:58 PM
:scared1: wow im a dental assit. and i make $11.00 hr. i have been w/ the same dentist for 4 1/2 yrs now started off at $7.50 what is she making? things are tight here even w/ husband making $$$$!! i don't see how she is making that much money:confused:

DNiece went to our local tech school (Jr. and Sr. year of HS) and went to work right from there. She is making, I think, $15-$18/hr. (we're in OH). This particular dentist also shuts down his office for 4-5 days, once year, and treats all his employees to a trip. Last year was Vegas, this year is San Antonio (these maybe tied in to conventions?). The family is so encouraging her to stay put and hang on to this wonderful job!

Also, her home was from a sherrif's auction, but she still qualified for over what she got the house for.

blackforest
09-06-2008, 02:00 PM
To the people who say that they can't change the minds of their older kids and teens about money, why not make it a rule that they MUST save a certain percentage of any money that they get whether it be allowance, gift money, or anything else? That is absolutely what I will do when mine are at the age to handle money. I only wish my parents had done that to me!

That is something we do. At first DD13 wasn't to happy about saving her b'day money ("that's My money")!

blackforest
09-06-2008, 02:06 PM
~I also want to suggest that you rethink how you are looking at her allowance. I dont' want to debate your family's choices but I do want to point out that double tithing on the same money isn't exact what the church had in mind. ;)

No debate:goodvibes !

How would this be double tithing? Because we tithe and then she is tithing from that money? Since this is her only source of "income", so to speak, it is really meant to help her understand the concept, as well, help her get into the habit. DD13 is a Type 1 diabetic, so babysitting isn't something alot of people are confortable with. She also volunteers with some Sr. citizens (including her 91 y.o. great-uncle), but they don't "pay"!