Dave Ramsey Shares Four Money Lessons Every Child Should Learn: 'Money Comes From Work, Not From Other People'

Dave Ramsey has helped people improve their finances for decades. He has written numerous bestselling books and hosts "The Ramsey Show" on SiriusXM. It's good to master your finances, but Ramsey also believes children should learn more about money.

That's why he recently posted an X thread that shares four money lessons every child should learn. He started strong and continued to provide valuable insights for parents who want to teach their kids about personal finance.

"Money comes from work, not from other people," Ramsey presented as the first lesson. 

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Ramsey paid his kids commissions instead of allowances so they understood that they had to work for money. Relying on other people, the government, or dumb luck to get the money you need is a winning formula. 

Understanding that you have to work hard for money was one of Ramsey's key lessons for children. These are the other three money lessons.

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Save Up For Purchases

Ramsey advocates for letting kids save up for purchases instead of giving them easy access to every item. This approach can nullify instant gratification and teach your children valuable lessons about saving and investing money.

"If they learn how, and why, to save up for a Barbie today, they'll know how (and why) to save up for a car or house tomorrow with no debt," Ramsey explained. 

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You can also teach your kids to put the money into a high-yield savings account while they save up for a purchase. The balance may not accrue much interest leading up to the purchase, but it's better than nothing. It's also good to introduce your children to stocks and ETFs through a custodial account that you manage. 

Let Your Kids Spend Money

Ramsey is all about saving money and living with zero debt, so it may shock you that he wants parents to encourage children to spend. Granted, they should spend responsibly, but it's important to give them "the awesome feeling of buying something they wanted with money they saved."

While saving money in the bank and investing in assets can lead to long-term wealth, children need to experience the rewards of working hard. Ramsey believes that if you never let kids enjoy their money, they will penny-pinch for the rest of their lives or rebel and spend crazily once they get into college.

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Have Kids Give Their Own Money

Ramsey wraps up his list of money lessons with giving. He believes that children should give their own money to causes, such as an offering plate in a Sunday Mass or a tip to a waiter. 

Your kids don't have to give much money. Ramsey explained that a quarter is sufficient. However, it's important for the children to give their own money instead of donating money that their parents gave them.

Ramsey believes that children who learn how to work, save, spend, and give will develop a depth of confidence and character that they wouldn't have otherwise. Ramsey emphasized giving as a critical money habit to teach your children.

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