Teaching your kids to save is key
May 20, 2014, 11:11 PM | Updated: 11:51 pm
For many parents, it’s hard to know when money should go from a “mommy and daddy issue” to a family issue. A local family, the Richards, have found that sooner is far better than later.
Rick and Melissa Richards taught their children, 11-year-old Anna and 8-year-old Josh, when they were each 7 years old.
Their financial lessons began in 2007 after Melissa gave Rick a book on tape by Dave Ramsey, “The Total Money Makeover” and then “Financial Peace Junior.” Rick and Melissa applied the Ramsey principles of commissions versus allowances; if they work they get paid.
“Whatever age they are it’s a good rule of thumb to allow them to make about as much money as their age is per week,” Rick said.
The Ramsey model is to save some, spend some and give some. Rick believes this puts the kids in the right financial mindset, “pull it out of my spend because my save I’m not going to touch.”
The Richards family believes is best not to shield kids from financial concepts.
“It’s better for them to see it, live, experience it themselves,” Melissa said.