Smart money smart kids Raising the next generation to win with money

Radio host and financial expert Ramsey (The Total Money Makeover) teams up with his daughter, Rachel, in this guide to raising financially savvy kids, using "practical, tactical, spiritual and strategic principles." Ramsey explains how he bankrupted his family in his 20s and then went on to become an expert, espousing debt-free living and teaching his three children how to become financially responsible. Though Ramsey weighs in frequently, most of the text is provided by Cruze, who details what it was like growing up Ramsey: for example, at age 16, she had saved $8,000, which her parents matched for her first car. The authors advise using the "envelope system" to teach kids money management (spend, save, and give) and emphasize teaching them that money has limits ("when it's gone it's gone"). But the authors also warn against rigidity; for instance, a parent who won't cover the tax when a child has saved for a $300 purchase takes things too far. The authors' "five foundations" include teaching kids to (1) establish a $500 emergency fund; (2) live without debt; (3) pay cash for a car; (4) pay cash for college; and (5) build wealth and give. Though biblical references are interspersed, parents of all faiths will benefit from this sound guide. (Apr.) (c) Copyright PWxyz, LLC. All rights reserved.