The Ramsey Show - App - How to Teach Your Kids About Money (Hour 2)

Episode Date: October 3, 2019

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. Open phones at 888-825-5225. That's 888-825-5225. Breanne starts off this hour in Oregon. Hi, Breanne.

How are you? Hi, great. Thank you so much for taking my call. I'm a huge fan. My pleasure. How can I help? So I'll give you a little backstory. My husband and I have two little girls, and we both have great jobs,

although he's a farmer, which means he's extremely frugal, and his profession is kind of a gamble. But we live in a very, very, very small town where housing options are very rare. A house will open up once every, like, four years. And so we've been really good with our finances. I'm a planner and motivated. I was also the spender until I realized that my husband's love language was financial security. And so I kind of cooled it and I decided to be competitive with myself and get on track and be debt-free and everything. We have everything on the list, the steps, the baby steps, except one thing. And I could pay off my car today, which is the easy answer, pay off my car.

But because we live in a community that's so small with housing that rarely opens up, I've been very hesitant to in case a rare opportunity knocks and then we didn't have the down payment as big as I'd like. So I'm kind of in this battle going back and forth, back and forth of just pay it off and have faith that something will open up or knowing I can pay it off, we'll have it paid off in about five months. So if we don't, just pay it off today. So I'm just kind of torn what to do because we don't, it's not like houses.

There's like five houses on the market all the time. I want to be able to invest in a house as soon as the car is paid off, as soon as opportunity knocks. Okay. Well, we tell you not to buy real estate until you're debt-free. So I guess we could be debt-free today, but then our down payment is less. So if you're following our plan, you can't buy a house because you have a car payment. Yeah.

So no matter what, just pay it off and then... I would never buy a house until you were debt-free. Okay. And so it would be necessary to get debt-free in order to buy a house. Right, which I could do tomorrow. I just was scared that if something opened up, then I wouldn't have an opportunity to invest in a house later. I heard you.

But the premise that you're basing that on is you're going to buy a house and still have a car payment. And I'm not going to tell you to do that. I think that's dumb. Okay. Even if that's dumb. Okay. Even if housing opened up. Because here's the thing. The blessings of the Lord have no sorrow added to them.

And when you buy stuff you can't afford because you're still sitting on car payment. You're still sitting over there with nothing. It doesn't turn out to be a blessing. It turns out to be a curse. And so if the house opened up, I would not call that God. Yeah. Because you're not ready to buy it. Right.

Because, I mean, we could afford a house payment right now and the car, but I just do want to. You kind of missed the point in this conversation, didn't you? No, I get what you're saying. I just think the nervous is just the lack of offers. But you just told Dave Ramsey you could still afford a car payment and a house payment together after i just told you i know okay you're right stop it stop it get out of debt kiddo but get out of debt okay and it'll all it'll all work out you're gonna listen and nothing else go buy a piece of ground

build your house well that's the problem there's nothing to build in our area there's nothing there's so small there's no options there's no land yeah even the farmland we bought on the business side you can't there's not enough to break off there's no it's really small it's frustrating there's no land in your area to build a house that's for sale come Come on. Seriously. Okay. If you have to build an impossible, fatalistic model in order to go do something stupid, then, you know, that's what's going to happen. So, no. You're going to get a house just fine. Pay off your car.

Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Wanda is in Virginia. Hey, Wanda, how are you? Fine, thank you. Thank you for taking my call. My pleasure.

What's up? Well, I have a question about your opinion on I retired about a year ago, and I contemplated on what to do with my funds. And so I took a payout, you know, I could take a cash out and roll it over into whatever I choose, chose to do. And, and that rollover was about $600,000. When I finally felt comfortable, um, well, let me back up a minute. before I retired, I did decide after listening to you to pay off all of our debt except for our home. We still owe our home. And my husband is also retired. Good.

So we still owe our home, but I took that $600,000 knowing that we would be okay with his income. And I went in and I'm drawing my social security, um, not to bother that money. Although, although, you know, cause I want it to grow, but, but I felt so torn about who to give my money to. I didn't know who to give it to. I've talked to several people that gave their money to blah, blah, blah. And, you know, I just didn't feel comfortable. So finally I found someone I did feel comfortable with. They put majority of it, they separated some of it and put it in annuities, but then they took about 190,000 of it and put it in a mutual fund. And in a year's time. And the reason they did that is because I said to them,

if I wanted to take some money out of that portion and, let's say, put a roof on my house or go on vacation or whatever, then I wanted something available to me. And that's why I asked him, you know, what could we do in that side of it and leave the annuities alone. But in a year's time, that has not made one dime. I suspect the annuities haven't either. He, well, he, I looked, when I looked and we talked, it has made probably $5,000.

Yeah. Well, that's because in the last 12 months, the stock market's flat. Okay. Nobody's made any money in the last 12 months. Okay. That makes me feel so much better. That's why I wanted to get through to you because I listen to you and you just

make so much sense and you're the one that got me. Here, do a little research and it'll help you. Okay. Because knowledge will give you peace or it'll help you make a decision to move something. Okay. And just pull up the S&P

500. It stands for Standard and Poor, and it's the top 500 stocks on the stock market. And pull it up. Just type in S&P this year into Google. Okay. Pull it up and look at what it was at the beginning of the year, one year ago, and look at what it is now. That's the best representation of the stock market, and you will see the market is basically flat during that time, that nobody's

made any money. But you don't give your money to somebody unless you understand what it's going into, and this is you understanding it a little bit more. This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs?

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It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thank you for joining us, America. This is the Dave Ramsey Show. We're glad you're here. Did you know that Americans have over $1.6 trillion in student loan debt? College kids are graduating and getting married with a huge monthly payment that they're going to have for years

unless they do something radical about it like the stuff we teach. They put off buying houses. they put off having kids some of them put off getting married it's an absolute epic epic plague on america and so we are in attack mode here at ramsey solutions we've decided to attack this head-on anthony o'Neill has a new book coming out Monday called Debt-Free Degree. And if you haven't gotten a copy of it yet, it's the step-by-step guide to getting your kid through college without student loans. Of course, we're going to continue to teach you around here how to pay them off. We're not going to participate in the madness that is called the political system that would suggest that we forgive student loans while we're still making them how bass-ackwards is that

that's ridiculous you're still making loans but you're going to forgive them that's dumb maybe you ought to stop making them first and then we'll talk about it hello congress time to stop this so we've and then we'll talk about it. Hello, Congress. Time to stop this. So we've launched a new podcast that has gone bananas, up to number 11 already on the Apple podcast list. It's in the top 1% of all podcasts in the world right now already, and it launched on Monday. It's called Borrowed Future.

There's eight episodes. One came out Monday. Another one will come out this coming Monday. It's called Borrowed Future. There's eight episodes. One came out Monday. Another one will come out this coming Monday. And it exposes the scam that is the federal student loan program. There are so many bad actors in this movie, it's ridiculous. It's not a movie, but it should be. Maybe it ought to be. Maybe we ought to do like a documentary. That's a good idea. Yeah. Well, as successful as this thing's been, I guess we're going to have to.

So we've got experts, whistleblowers, people from inside the industry, all kinds of people. This is a different format of a podcast for the Ramsey Network. Most of ours are Ramsey personality-driven. This one's got us guys in it, but it's not, you know, it's got people like Mark Cuban and Mike Rowe seth godin and all these other people commenting too because most anybody with half a brain cell to rub together has figured out this ain't working and something needs to change so subscribe and listen to borrowed future tell everyone you know a matter of fact if a whole bunch of you would subscribe listen to it

and rate it today we could drive it up to number one if you drive it up to number one it'll make all the apple podcast promotion stuff free and it'll go bananas even more and we can spread this word uncovering the student loan crisis all podcast platforms but you jump over there for those of you that are apple users the the Apple podcast thing, get that thing going, man. Subscribe, listen, and rate it. Subscribe, listen, and rate it. And rate it five stars. Shut up.

It is five stars. So just get in there and do it. It's a dadgum incredible piece. I'm so proud of our team. We've worked so hard on this for months and months and months, and the launch was last Monday. Borrowed Future. Borrowed Future. Go download it right now. on this for months and months and months and the launch was last monday borrowed future borrowed future go download it right now listen to it and rate it thank you laura is with us laura's in ohio hi laura welcome to the dave ramsey show

hi dave how are you better than i deserve what's up in your world? Well, I am a new listener within the last three to four months. And it took me about a month and a half to get my husband on board. And long story short, we are in a church who runs a 12-month free rehabilitation program that we were asked to do a life skills course on that includes budgeting and we will be meeting with these people once a week to do their budget as we help them find jobs. I'm just wondering if you can tell me and give me a little bit of insight on how to instruct these people to have a budget when we are just starting our budget ourselves and doing the baby steps. And my pastor wants me to go teach SPU.

However, I've never been through it, and I'm only reading other people's notes from what they've taken. Well, you don't have to have been through Financial Peace University to teach it. I teach it. It's taught by me on video. And so all you've got to do is be able to put chairs in a circle and turn on a DVD player and love people. We'll show you how to do the rest. So you don't have to become a financial expert to teach FPU. Now, are you talking about teaching FPU to these other folks, or are you just

trying to take some of the principles and teach these other folks? Well, at first, we want to just do the principles. Now, who's coming into who's coming into that class you called it a a life skills class for what for we have a 12-month program for people that um are being rehabilitated so either drug addicts or people with life um threatening issues we bring them in we call it a discipleship program. Sure. It's free of charge to them.

We teach them about Jesus. We integrate them into our church. Excellent. What's the name of your church? It's called Be Ministries. And it's in what city? Marion, Ohio. Very cool.

How many people are going to go through this in 12 months? Let's see. Right now we have 10 people that this in 12 months? Well, let's see. Right now we have 10 people that are in the program, but our program fluctuates. It's kind of like the Dream Center. We based our program off of that program. I'm friends with the Barnett family, so good. Very good. Yeah.

All right. So here's what I'm going to do. I'm going to send you a case of Total Money Makeover books for your class. Oh, wow. Thank you. Well well they're rebuilding their lives you're helping them rebuild their lives and i can throw in a little bit i'll help too okay okay and then that'll treat that'll give them everything they need to know um and then later on when you're doing financial peace university for folks that are not um you know they're not

entering at the same level they're just more leading more normal lives uh you can help us run that class, and we'll show you how to do that. And it's real easy to do. You can do both, okay? But I'll help the folks in your class that are putting their lives back together. I'll send you a case of them, and that'll give you, I don't remember how many is in a case. It's like 20 or something like that. And that'll give you plenty for the other ones entering that class, okay? Okay.

All right. You hold on, and Madison will pick up, and we'll ones entering that class, okay? Okay. All right, you hold on, and Madison will pick up, and we'll send those out to you. Very cool. I appreciate what you're doing for them and what you're doing for Jesus. Very well done. All right, Lauren is with us. Lauren is in Indiana. Hi, Lauren, how are you?

Hi, Dave. Thank you so much for taking my call. My pleasure. How can I help? My husband and I just finished Baby Step 3, and we've got a chunk of money left over from we sold our house and just recently bought a new house and made some good money off our last house, and we just want to be wise with it and don't know where to put it.

If we should start saving for college for our three kids, or is it okay to upgrade a family car that needs replacing, and we just want to be wise with it. Gotcha. Okay. How much money in this account? $22,000. Okay, and you have your emergency fund in place,

and you have no debt except your home? Yes, sir. Good. Good for you. Okay. Well, anywhere in there that you want to do with it, obviously we're going to have you out of your income, not out of the $22,000, start putting 15% of your income away for retirement.

That's maybe step four. Right. As you know, five is kids' college, so it is time to start talking about that. And six is pay off the house. So we're not going to get to six with this money because we're probably going to use it. How old are your kids? Eight, five, and two.

Okay. And what would you want to spend on a car? Well, it just keeps kind of failing. No, I'm saying if you're going to buy a car, what would you spend on the car you're going to buy? Between $10 and $15, I would think. Okay. That would leave you $7 if you spent $15 to throw towards kids' college, right? Right.

Okay. So like $2,000 a kid or $3,000 a kid is what we're going to put in the kids' college fund. Get those started. And then we're going to buy a car for cash. And what's your household income? I think he said about $75,000. Okay. Then your car is not out of line at $10,000 or $15,000.

So let's do that and let's put the balance in the kids' college fund. Meet with your SmartVestor Pro. Click SmartVestor at DaveRamsey.com. Put in your information. It'll drop down a list of the pros in your area that we recommend, and you choose from among them. Sit down and pick out some mutual funds for your kid's college, and let's get going. This is the Dave Ramsey Solutions on the debt-free stage, Tyler and Kayla are with us. Hey, guys, how are you?

Doing good. Welcome, welcome. Where do you live? Rochester, Minnesota. Cool. Wow, that's a bit of a haul to Nashville. It is. Well, good to have you.

And all the way down here to do a debt-free scream. Correct. How much have you paid off? $181,948. $181,900? Correct. Okay, very cool. And how long did this take?

About seven and a half years. Oh, wow, okay. And your range of income during that time? Started about $80,000 and currently about $126,000. Very cool. So what kind of debt is the $182,000 that you paid off? We had a mortgage of $153,000, auto loan, we had a school loan, and medical bills. You paid off your house?

Paid off the house. I'm looking at weird people. Well done, you guys. Very well done. That's very cool. How old are you two? 36. And a paid-for house in seven and a half years from the time you started. Very well done. That's very cool. How old are you two? 36.

And a paid-for house in seven and a half years from the time you started. Wow. That's what we tell everybody. It takes about seven years. That's the norm. You guys hit the number right on the head. Way to go. Thank you. So what got you started on this seven years ago, eight years ago?

About 2010, we found out we were going to be blessed with our first child. And up to that point, we were just normal. We had a mortgage. We had an RV loan. We had a truck loan and school loans. And of course, once we got the news, reality kicked in. Yeah, it kind of tilts everything, doesn't it? So how are we going to pay for childcare and diapers and food? So I did some simple math, and I thought if we got rid of the RV loan, that would pretty much cover our child care, and we could just move on. So that was our plan. We hit it hard, and we got our RV loan paid off.

And then our child was born in early 2011, and a few months later, we found out we were pregnant with twins. Yeah! Now it got real. Yeah. So after we found out that news, they gave us a heads up that there could be complications with twins, and it just takes longer. So we knew that we wouldn't be able to get the next truck payment paid off right away, but it was probably about a year out. So we started saving, just preparing for that emergency. Something went wrong. Time went by. Babies were finally born. They were born three months early. In the

meantime, my wife was put on bed rest. Of course. We should have used up all of her short-term disability before the babies were even discharged from the hospital. But they were obviously too small to be left alone or taken to daycare at this point. So my wife ended up being off of work for nine months total.

And then in the meantime, we're just dealing with the medical bills and the daily stress of three little ones under the age of one. After that point, a whole year had gone by. Early in 2013, we thought we need to get our finances figured out and get these medical bills under control. So we signed up for the FPU class at our church. There we go. And went through that, and that was the turning point for us. We were both on board at that point. What do you tell people the key to getting out of debt is? It is definitely the budget.

Sticking to it. And the teamwork. We both had to be on the same page. Being on the same page. Were you on the same page most of the time? Most of the time, yeah. Yeah, I think so. Not right at the beginning, but we got there.

What was the biggest budget fight you had during this time? The one that you remember that you're like oh god that's great I think it was when I first started I had read the total money makeover and I came home

and I had already I'm the nerd so I'd already figured out the budget for us and I explained it to my wife as now you'll have an allowance

to spend every month oh that was not in that book, that was not in that book. Yep. That was not in that book. Different words would have been much wiser. Yeah. Yeah, so that shut it down. I'm like, you're going to do what?

You are confused. That's good. I like that. That's real. That's good advice. I should note that we, during all of this last seven and a half years, we've also had about $15,000 worth of home improvements and just life happening around the house. Sure.

And we've spent close to $60,000 in daycare. Sure. So that was all cash flowed. Absolutely. As we're trying to pay down the debt. Absolutely. What's the house worth? Probably about $240,000, $250,000 right now.

Look at you. Way to go, man. You have a paid-for house. Do you the house worth? Probably about $240, $250 right now. Look at you. Way to go, man. You have a paid-for house. Do you ever think that? It's finally sinking in. I mean, did you ever think like when you were, you know, 10 years ago or something, like someday we'll have a paid-for house? No, because I think when we started, everybody gets a 30-year mortgage.

That's what we were told. It's for life. Everybody does it. It's for life. And same thing with the car loans. Everybody has a car loan. You'll always have one. Yep.

Until we met this group at church with the FPU, and not everybody was that way. And that was inspirational. And then you had a new normal. We did. And to keep us motivated, we've been leading FPU now. Oh, wow. Thank you. Or co-leading with a group through our church for about the last six years.

Very cool. Thank you. Thank you. That's rewarding, too. It is. Watching other people go win is that's almost as much fun as doing it yourself yeah yeah well done you guys very very well done who are your biggest cheerleaders your fpu group or what fpu group definitely parents yeah good good well we got a copy of chris hogan's book for you everyday millionaires you're You're going to be one. That's where you're headed next.

That's the next chapter in your story. We'll close the debt chapter, open up the wealth and the generosity chapter. Life is good. Well done. All right. It's Kayla and Tyler, Rochester, Minnesota. $182,000 paid off their house and everything. They're officially weird. Seven and a half years, making $80,000 to $126,000 paid off their house and everything. They're officially weird.

Seven and a half years, making $80,000 to $126,000. What a story. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Woo! Love it!

Man, they're awesome. That is so fun. Congratulations, you guys. Very, very, very well done. Open phones this hour at 888-825-5225. You jump in. We'll talk about your life and your money. Shanna is on my Facebook at facebook.com

slash Dave Ramsey. My mother is 72 years old and works at a church part-time. She was working 30 hours a week, but her hours have been cut to four. She also gets Social Security. When they cut her hours, it gave me

the opportunity to talk to her, and I found out she's got $70,000 of debt. She's afraid they will garnish her Social Security check should she file bankruptcy. You cannot garnish Social Security checks. Social Security checks is protected, and so no matter what happens they can't get that now what they can do is most people with their social security check have it direct deposited into a checking account and they can put a lien on your bank accounts and they can get at it that way so you'll have to be very very careful on how the social security check is handled

if you're not going to pay these bills and eventually are going to get sued. So what a horrible, sad thing that she's facing at 72 years old. So if she is physically, mentally able, I would tell her to look for another job and create some income. And obviously the church is later off effectively. And so I don't know anywhere to get money if somebody doesn't already have it, have money in an asset of some kind except from work. And I'm sorry, I don't want to put a 72-year-old lady to work, believe me, but I'm not putting her to work, or the situation is.

And so if I were in her shoes, if she's able, then I would address that. If she's not able to work, if that's the reason that the church cut her hours back, because she's unable maybe, it's possible that that's the situation, then you don't have to worry about the Social Security check. That's not a problem. But you just have to know that any bank accounts you have or any assets that you own other than Social Security, depending on the state you're in,

she can be sued for not paying these debts, and they can scarf them. But I suspect she doesn't have much. I suspect, based on this story, there's nothing there to get, which makes her what we call judgment proof. They can't get at her because she doesn't have anything. So bankruptcy is probably not necessary.

Hope that helps. This is The Dave Ramsey Show. Thank you for joining us, America. This is the Dave Ramsey Show. Carl is in Wisconsin. Hey, Carl, welcome to the Dave Show. What's up? Hey, Dave. How are you doing today?

Better than I deserve. How can I help? I guess I'm 26 years old. I farm for a living. I mean, I farm for myself and I work full time at a dairy farm. So I'm busy. Me and my girlfriend just recently opened up a business to sell beef, pork and chicken that we raise ourselves. I have a little bit of debt on a vehicle and on a tractor. And then I also have some debt on a crop loan for this year. Just wondering what I should do with the money I make off of, like, crops and, like, cattle sales,

if I should save that money for next year's crop season to buy stuff or if I should use that money to pay off, like, my personal loans, like my vehicle and the tractor. If you pay off the vehicle and the tractor and all that, how are you going to do the crop? Well, I would take out another loan for the year. Okay. You know, because, like, do you know how, like, a crop loan works, I guess? I mean, where it's like. Oh, yeah.

Okay. Yeah. how like a crop loan works i guess i mean where it's like oh yeah okay yeah um i also know that there are uh very few farmers who actually and by the way farmers are probably some of the hardest working humans on the planet um you work yourself to death and and most farmers that run large large amounts of debt don't make a good living even by the time they clear. I don't have a large amount of debt. I know. I know.

I'm just making a statement, okay? I wasn't talking about you. Okay, okay. So my point is that I would love to teach you to run your business debt-free. And the first step to... My business... Okay, sorry to interrupt you. Your business has debt, and you you have debt and you've borrowed and you've been

around people that borrow all the time and so what i want the first step to getting out of debt is not borrowing anymore and so i don't want to set up where you have to where you're planning to borrow another crop loan because you used the money for something else. So if the rhythm of your business requires that you need cash, you've got to set that cash aside for your next crop, in other words. Then any other monies we scrape together, any money we make from anything, we're going to systematically work our way out of debt. First, stop borrowing more ever for anything.

That's your first step. That's a big step in your world. Then you work your debt off with the income that you create from all your hard work, and you are a very hardworking dude. So that's exactly what I would do. All right, Gwen is with us in Missouri. Hey, Gwen, welcome to the Dave Ramsey Show. Howdy, thank you for taking would do. All right. Gwen is with us in Missouri. Hey, Gwen. Welcome to the Dave Ramsey Show.

Howdy. Thank you for taking my call. My pleasure. What's up? Well, I have a few questions all within the realm of teaching kids finances. My husband and I were on Baby Step 2, so our kids have been really precious and sweet and understanding and really getting the understanding of mommy and daddy are trying to get out of debt type of thing. Good. How old are they?

Our oldest is 10, our middle is 7, and our baby is 6. Great. It's a wonderful time for your family to learn these lessons. You're changing your family tree. That's what we're hoping. So we want to keep this going, of course. And I just feel, like, super overwhelmed with knowing when to open up checking accounts, when to, what to say. I mean, I know 10%, of course, we're Christians, so we totally understand that,

giving and stuff but um when do we say okay you need to save up because we have three little boys so we know that they're going to one day want to buy their own rifle to go deer hunting but then also we want them to buy their own vehicle so when do you say you can take this chunk out for a large purchase, but you also need to be saving for your own vehicle? Mm-hmm. Does that make sense? Absolutely makes sense. What you're teaching there is short-term goals versus long-term goals, right?

Mm-hmm. And so what do we all do? We all have to balance our short-term wants or needs with our long-term wants or needs. If you spend everything on the short-term, then, you know, if you spend it all on a deer rifle or all on long-term wants or needs if you spend everything on the short term then you you know if they spend it all on a deer rifle or all on short-term goals then they're going to have no money for a car that's not going to work if they spend everything on a car they have no life right now and that's not going to work and so if you save a hundred percent for the car so we don't teach that so what we've taught people and i'll send you a copy of the book that rachel

and i did together. It was a number one bestseller. It's called Smart Money, Smart Kids. It's how to teach your kids how to handle money. And there's basically four skills that everyone needs to learn, but particularly we want to teach them to kids when it comes to money. Number one is work, and you teach them to work. Now, it's age appropriate.

We don't put a three-year-old in the salt mines, okay? But all kids need to have some chores. They all need to have some things they do, and they work. Our kids were not on allowance. Allowance sounds like welfare. I'll make allowance for you because you're deficit. No, that's not the case. You're not deficit.

You're very capable. You can do anything you want to do i'm going to teach you that so um they were our kids were on commission you work you get paid you don't work you don't get paid so we had a chore chart on the refrigerator and they got a some things they did around the house they did because uh they're part of the family and they don't get paid on those that's just being part of the family you help your mama when you're told to do so you know that kind of thing and some things you do i pay you for because i want you to make an emotional connection between work and money money works where money comes from and i want you to know that i meet 54 year olds that don't know that and so i want you to learn that while you're under my roof then once you've worked and earned some money the other three things come into play you've already mentioned them and uh

that's learning to give learning to spend wisely that'd be the deer rifle wanting to save wisely that'd be for the car and so we're going to set this much towards the deer rifle we're going to set this much towards the giving at the church and we're going to set this much towards uh towards your car and you always do those three things with money for the rest of your life you always give it separate yeah go ahead we use envelopes we just have a little giving envelope a little saving envelope and a little spending envelope and you don't put it in the bank you can put it in the bank on the saving one once it starts to build up a little bit. But we just write that across three things. We've got a product called Financial Peace Junior that has the envelopes in it and it

has the chore board for the refrigerator and all that stuff. I'll send you one of those, okay, and that'll get it going and it shows you exactly how to do what I'm talking about. And your kids are the perfect age for this. It's got a little saving envelope, a little giving envelope, a little spending envelope in it, clear, so they can see their money build up. And there's all kinds of stuff at DaveRamsey.com to help you with your kids. But I'll send you Smart Money, Smart Kids,

and I'll send you the Financial Peace Junior kit for teaching your kids how to handle money and you can take it from there you're going to do great you're a great mom because you're asking about this and you're learning about this and the way you change your family tree is you teach your kids how to handle money right stuff maybe you and i didn't do right you didn't do right you're having to get out of debt right that kind of thing and then you teach them uh how to handle money and then you actually change your family tree because there's wealth in your family so we've got substantial wealth in the ramsey tree now and our kids are substantially wise all three of our grown kids with handling money and how they view money and how they view debt and how they view all of those

things and uh if they're not going to be substantially wise, they will not be in the estate plan because I'm not going to fund insanity. I'm not going to fund stupidity. I'm supposed to be a wise manager of the money. And just because you hit the DNA lottery and you're one of my kids doesn't mean that you get all that. So you still have to behave. That's how it works.'re cold ramsey yeah i know i'm just getting old and grouchy just the way it is sorry about that open phones this hour 888-825-5225 you jump in we will talk to you about your life

and about your money it's an honor to have all of you. We appreciate you being here. Our thanks to James Childs, our producer. Madison is our associate producer and phone screener, filling in for Kelly this week. We'll be back with you before you know it. Hang with us, people. This is The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.