What will I learn about: replace the traditional allowance with a commission system to teach your children the direct connection between hard work and earning money?

Learn how to replace the traditional allowance with a commission system to teach your children the direct connection between hard work and earning money.

What will I learn about: how visual tools like clear jars for toddlers and the three-envelope system for older kids can make saving, spending, and giving tangible and exciting?

Discover how visual tools like clear jars for toddlers and the three-envelope system for older kids can make saving, spending, and giving tangible and exciting.

What will I learn about: the importance of teaching opportunity cost and the overnight waiting rule to help your children develop wise spending habits early on?

Understand the importance of teaching opportunity cost and the overnight waiting rule to help your children develop wise spending habits early on.

What will I learn about: how to identify whether your child is a natural spender or saver so you can tailor your guidance and help them thrive debt-free regardless of their inclination?

Find out how to identify whether your child is a natural spender or saver so you can tailor your guidance and help them thrive debt-free regardless of their inclination.

What will I learn about: the art of modeling good financial behavior by practicing a zero-based budget yourself and turning your own money mistakes into valuable teaching moments for your kids?

Master the art of modeling good financial behavior by practicing a zero-based budget yourself and turning your own money mistakes into valuable teaching moments for your kids.

Smart Money Smart Kids

Raising the Next Generation to Win with Money

Dave Ramsey & Rachel Cruze

★ 4.2 / 5(225 ratings)

Start ListeningDownload QR code that opens AudiobookHub on the App Store

Try free on iPhoneScan to start in 5 seconds

Categories:

Money & Investments Parenting

If You're Curious About These Questions...

You should listen to this audiobook

💡Did you know that replacing your child’s 'allowance' with a 'commission' system could be the single most important step in building their lifelong work ethic?
💡Have you ever wondered why using clear jars instead of a traditional piggy bank is a psychological game-changer for how kids learn to save, spend, and give?
💡What if you could equip your teenager with the confidence to navigate major financial milestones without ever falling into the trap of debt?

Listen to Smart Money Smart Kids — Free Audiobook

Loading player...

Key Takeaways from Smart Money Smart Kids

✓Learn how to replace the traditional allowance with a commission system to teach your children the direct connection between hard work and earning money.
✓Discover how visual tools like clear jars for toddlers and the three-envelope system for older kids can make saving, spending, and giving tangible and exciting.
✓Understand the importance of teaching opportunity cost and the overnight waiting rule to help your children develop wise spending habits early on.
✓Find out how to identify whether your child is a natural spender or saver so you can tailor your guidance and help them thrive debt-free regardless of their inclination.
✓Master the art of modeling good financial behavior by practicing a zero-based budget yourself and turning your own money mistakes into valuable teaching moments for your kids.

Learning Tools

Reinforce what you learned from Smart Money Smart Kids

Mind Map

Smart Money Smart Kids

Core Philosophy+

Work & Earning+

Spending & Saving+

Budgeting+

College Planning+

Quiz — Test Your Understanding

Question 1 of 7

According to Ramsey and Cruze, why is a 'commission' format recommended over a traditional 'allowance' for children?

A. A commission allows parents to pay children less money overall.
B. An allowance is too difficult to track in a monthly budget.
C. A commission more directly teaches the connection between hard work and earning money.
D. An allowance encourages children to become natural spenders rather than natural savers.

Question 2 of 7

What method do the authors suggest for paying children ages three to five when they complete chores?

A. Deposit the money directly into a high-yield savings account to teach long-term growth.
B. Pay them immediately using single dollar bills placed in a clear jar to make the reward visible and exciting.
C. Withhold payment until the end of the month so they learn patience and delayed gratification.
D. Give them a prepaid debit card to introduce them to modern digital banking.

Question 3 of 7

How do the authors view the natural tendencies of being a 'saver' versus a 'spender'?

A. Being a saver is vastly superior, and parents must correct a child's spending inclination early.
B. Natural spenders are destined to fall into debt unless they earn a high income.
C. Neither is inherently better, but both require the implementation of wise habits like budgeting.
D. Children typically adopt the exact opposite tendency of their parents, regardless of how they are taught.

Question 4 of 7

When creating a monthly budget, what do Ramsey and Cruze recommend doing first before accounting for expenses?

A. Budget a specific amount for savings and donations.
B. Allocate money for the children's commissions.
C. Set aside a $500 emergency fund for unexpected home repairs.
D. Pay off any existing credit card debt from the previous month.

Question 5 of 7

How should parents react if a teen depletes their emergency fund on a non-essential item (like concert tickets) and then faces a real emergency (like a cracked phone screen)?

A. Bail them out immediately to show that family is a reliable safety net.
B. Allow them to deal with the consequences and wait until they can afford to fix it themselves.
C. Confiscate their checking account and return to paying for all their expenses directly.
D. Pay for the repair but deduct the cost from their future college tuition fund.

Question 6 of 7

What is Ramsey and Cruze's key message to parents regarding paying for their children's college education?

A. Parents should take out loans if necessary, as a degree is essential for future wealth.
B. Parents are morally obligated to cover at least half of the tuition costs.
C. Parents should only pay for college if the child chooses an in-state, public university.
D. Parents are not morally obligated to pay for their children's college, though they can if financially able.

Question 7 of 7

Which of the following is NOT mentioned in the text as a strategy for a teen to get through college debt-free?

A. Taking out a low-interest federal student loan to build credit early.
B. Choosing an in-state, public college over a private one.
C. Applying for multiple scholarships daily during their senior year of high school.
D. Working full-time hours during summer and winter breaks to save money.