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7 Things Every Money-Smart Kid Needs to Know

It hits you as soon as the doctor places that new little bundle of joy into your arms. You’re now a parent. Suddenly, you’re responsible for a helpless human being.

And you have absolutely no idea what you’re doing! They don’t give you an owner’s manual for this kind of thing.

Well, here’s something to get you started. Author Andy Andrews says that our goal as parents shouldn’t be to raise good kids, but to raise great adults.

Whether your children are still pretty young or closer to college than you’d like to admit, you can teach them some valuable lessons about money. To point you in the right direction, here are seven things that every money-smart kid needs to know.

1. God Owns It All.

The psalmist wrote, “The earth is the Lord’s and the fulness thereof” (Ps. 24:1 KJV). He owns it, and we manage His resources for His glory. That’s what true stewardship is all about.

2. Money Comes From Hard Work, Not Your Parents’ Wallets.

Money-smart kids don’t buy into the whole entitlement mentality. They find their purpose—and their paycheck—in a job well done. For them, work isn’t a four-letter word.

3. Successful People Create a Budget on Paper, on Purpose Every Month.

If you don’t tell your money where to go, you’ll always wonder where it went. Money-smart kids give every dollar a name and make the month-to-month adjustments to stay ahead of the money game.

Video lessons

Your child can win in life and money. Check out our online courses!

Related: How to Make a Zero-Based Budget

4. It’s Okay to Save Up for the Stuff You Want.

Patience is a virtue, but it doesn’t come naturally. Kids who know how to win with money aren’t afraid of delaying gratification instead of wandering into debt to get something right now.

5. Compound Interest Is Your Friend.

Paying interest on debt is a drag, but putting interest to work for you is like magic. What could possibly be better than having money that makes money? It’s a mathematical explosion!

6. Giving Is The Most Fun You Can Have With Money.

Money-smart people are incredibly generous people. In fact, they don’t just give their cash. They also share their time and talents.

7. Money-Smart Kids Know That They’ll Never be Slaves to Debt.

They take the Bible seriously when it says, “the borrower is slave to the lender” (Prov. 22:7 NIV). And they know life is too short to live in that kind of bondage.

Related: 7 Characteristics of Debt-Free People

As a parent, you’ll leave a financial legacy to your kids after you’re gone, but whether that legacy will be positive or negative depends on what you do right now. So, wherever you are in the Baby Steps—and however old your kids are—make sure they get the message early and often.

That’s the only way to guarantee your money-smart kids can grow into great adults.

You can learn more about raising money-smart kids by checking out our Smart Money Smart Kids class. In this six-lesson series based on the #1 New York Times best-selling book, Rachel Cruze talks with her dad, Dave Ramsey, about what it was like growing up in the Ramsey home and how other families can learn from their victories and their mistakes.

Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.