Garrett Reviews “Smart Money Smart Kids: Raising the Next Generation to Win with Money” by Dave Ramsey and Rachel Cruze
Rachel, Dave’s daughter, and Dave give us two different perspectives of raising a financially fit child. Dave’s no nonsense approach as a parent asserts that teaching your children how to manage money should be common sense. However, for most Americans, finances are not discussed, considered taboo, or the parents don’t have the knowledge to pass on to their children. Rachel, who began learning these lessons at the age of 3, has firsthand experience on what works and what doesn’t. She learned the idea of work, the value of a dollar, and the concept of opportunity cost early in life, and became a more mature decision maker at a younger age then her peers. Parents have to practice what they preach. A child watches everything their parents do and adapt to their behaviors, even if they are negative behaviors.
Personal finance is 80% behavior and 20% knowledge. There is a single trait that successful financially literate adults have in common, that is they were taught these behaviors at a young age by their parents. They derive from experience, not knowledge.
This book is great read for parents with children from preschool to high school.
– Garrett Carter, CFP®