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Step 1
Dave Ramsey, Money and Kids**Pay your child a commission for working**
The first step to teaching your child about money is to actually give them money to save, spend and give away. Even if you do not believe in giving an allowance, you should let your child use money. Show them how to pay the bills, shop at the grocery store and give money to local charities. The more they see you use money the smarter they will become using their own when the time comes. Financial knowledge equals financial independence. -
Step 2
Dave Ramsey understands Money**Teach your child to give**
Open a bank account for your child. Search online to contact a local credit union. Open a joint savings and checking account for your child. Secure a debit card for your teenagers. Deposit all their birthday gift checks from their grandparents into this account. Sign up to receive paper bank statements and watch how interest helps their accounts to grow. Recognize that children want to understand how money works. -
Step 3
**Invest in growth stock mutual funds**
Take your child to the local stock exchange. Educate them to understand how public companies make money and sell stocks. Search online for the stock market exchange in your city. Find out if they give tours to schools and classes. Teach your child the importance of understanding how the stock market works. Remind yourself that many adults do not understand the stock market and you can help your child by doing this at a young age. Teach your children to invest your money.
