Dave Ramsey on Teaching Your Kids about Money

CBN.com WHY DO YOUR KIDS NEED FINANCIAL ADVICE
The average American child may view as many as 40,000 commercials every year and by age 3 can recognize 100 different brand logos according to focusonyourchild.com. In a 2004 Time magazine article the writer found that corporate America spends an estimated $15 billion to advertise directly to children and that children under the age of 13 influence $600 billion in family spending along with $40 billion that they spend on candy and clothes.

“You have to teach children about money intentionally – create teachable moments,” says national radio host, best- selling author and financial guru, Dave Ramsey. “The advertisers have a plan so you must have one too. Children who reach the age of eighteen with their entire skills set composed on Nintendo and eating Doritos have been neglected. Their parents neglected to give them the character traits necessary to live successfully.”

NEW BOOKS, MORE MESSAGE
A respected author of “get out of debt” books for adults, Dave will release three new kids’ books in late August, 2005. In this new series, Junior, the main character from Dave’s earlier kids’ books, teaches children about managing their money as he navigates through his own financial decisions. In Dave’s three new titles - Adventures in Space, A Special Thank You and Battle of the Chores – Junior learns about contentment, integrity and debt. In Adventures in Space, Junior learns that you don’t have to spend lots of money to get the things you want. This story teaches that you can be just as happy with what you already have around you. In A Special Thank You, Junior learns the importance of doing what’s right even when no one is looking. This story teaches the importance of integrity and the unexpected thanks that it brings. In Battle of the Chores, Junior learns that when borrowing money to get what you want now instead of waiting and saving, there are unexpected consequences. This story teaches children the dangers of debt and how it can affect not only the borrower but the relationship they have with the lender. Throughout the month of September, Chick-fil-A will feature five of Dave’s kids’ books in their kids’ meals nationwide.

SO HOW DID DAVE RAMSEY LEARN ALL THIS?
After college, Dave found a niche in foreclosure bargain real estate. With a formal education in finance, a family background in real estate and a burning desire to succeed, Dave had a head start in life. By the time he was 26, Dave had a net worth of over a million dollars and was making $250,000 a year, that’s more than $20,000 a month in net taxable income. His real estate portfolio was worth more than $4 million and everything seemed to be moving perfectly. Then, banks decided to trim back on real estate lending due to the 1986 real estate tax act. Most of Dave’s borrowing was in short-term notes (because most of the property he resold was for profit) so the banks invoked their right to call the notes. Dave had 90 days to find $1.2 million. He paid virtually all of it, but doing so destroyed his business and he ended up losing everything but his house and literally the clothes on his back.

“I remember the strain on my marriage,” says Dave. “It took three and a half years for paradise to completely unravel and for me to end up broke.” From the nightmare of losing everything and the emotional pain it caused, Dave got the idea to counsel the average consumer through debt problems. In ten years, Dave says he has seen more than 10,000 foreclosures come across his desk. “I believe it is time for the typical American family to get out of financial bondage,” says Dave. “I believe that through knowledge and discipline, financial peace is possible for all of us.”

DAVE’S METHODS REALLY WORK
More than 150,000 families have completed Financial Peace University with the typical family saving $2,700 and paying off $5,300 of debt. More than 350,000 people have attended a Dave Ramsey LIVE event. Ramsey created Financial Peace Jr. to help parents teach sound financial principles to their children. Active in more than 450 schools in 29 states, “Financial Peace for the Next Generation” educates High School students on the importance of financial planning and the dangers of debt. The Dave Ramsey Show is syndicated to more than 250 radio stations nationwide with more than 2 million weekly listeners

Books are available at www.daveramsey.com, by calling 888-227-3223 or through local bookstores.