4 things you should teach your kid about money and follow it yourself, too: Dave Ramsey’s golden advice for parents
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.
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.
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.
Ramsey connects this habit with larger purchases later in life. Waiting and saving can prepare children to approach buying cars or homes without borrowing.
Parents should help children save money, even when other choices seem tempting. The lesson is to plan ahead rather than expect every wish to be met immediately.
Saving should also lead to the pleasure of buying something worthwhile. Children need opportunities to enjoy money they have earned and set aside.
Ramsey warns against forcing children to hold on to every rupee. They could become unwilling to spend or later react by spending carelessly and taking on debt.
Amelia struggled to understand how to pay for online shopping. The toy arrived, and her cash disappeared. Parents can explain each step so children understand how money pays for purchases.
Children should give some of their own earnings to help others. Simply handing over a parent’s money does not offer the same personal experience.
Ramsey encourages generosity while keeping money available for saving and spending. Even a child eager to donate everything needs guidance about balance.
Parents can follow the same approach in their own lives. Work provides income while saving, giving and sensible spending give that income different purposes.
Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.
Get Latest real-time updates
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMoneyPersonal Finance4 things you should teach your kid about money and follow it yourself, too: Dave Ramsey’s golden advice for parents
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.