Dave Ramsey: Teach them while they’re young
My wife and I want to begin teaching our son how make a budget and live on one. He’s 16, and he has a part-time job and a hand-me-down car. Is this a realistic idea?
Your son is at a great point in life to learn how to make money behave. Even in his situation, when he’s still living at home, there are plenty of things he can include in a budget. There’s gas for his car, along with maintenance and insurance. He’ll need to save a little money — maybe even for college — and I’m sure he’ll want some spending cash, too.
It’s still your responsibility to provide him with the basic necessities at this point. But I love your willingness to teach your son how to handle money intelligently. The sooner he learns some basic money management principles, the sooner he’ll be able to handle his finances responsibly in the real world.
Controlling your cash
I work long hours, and I make pretty good money. The problem is the money from my paychecks always seems to disappear before the end of the month. I know part of the problem is grabbing quick meals between extra shifts, and eating out a lot after work, because I’m usually too tired to cook when I get home. How can someone who has very little free time start gaining control of their finances?
When you make a prioritized spending plan, and start telling your money what to do ahead of time, you’ll have the ability to do what’s important with what you’ve earned.