Money management is one of the most critical skills we can teach our kids. I recently asked a group of parents if they gave their kids an allowance. There were some great answers. A handful of parents had a pretty good handle on how to teach their kids to be responsible with money. Unfortunately, many didn’t have a plan at all.
In my opinion being responsible with money is one of the most important things we need to teach our kids. The lack of discipline with money is the root of all sorts of problems in our society. Money management is about discipline and self-control. The average American has neither. Let’s examine the statistics:
- Average credit card debt among indebted households: $15,263
- Average credit card interest rate: 14.95% APR
- Average mortgage debt: $147,591
- Average outstanding student loan balance: $31,646
- Average auto loan debt: $30,738
- Only 59 percent of Americans have at least $500 in a savings account saved
I was just like everyone else, no financial discipline. I was spoiled as a kid, who got most of the things I wanted without having to earn them. Fortunately, my dad instilled in me a good work ethic. Coupled with my drive to do my own thing I set off to be my own boss. I struggled. I lived on Ramen noodles, white box mac n’ cheese for two years. At one point I was living in my school. Then I heard this guy named Dave Ramsey.
I’m not going to give you all the bloody details, but what he said changed my life. I devoured his books, listened to his radio program everyday. Went to his live seminars. I was a fanatic. I went through Financial Peace University and became a high priest in the cult of Dave Ramsey.
I went through the baby steps. I started an emergency fund. I got rid of my car payment and bought a $500 junker, when that died, I upgraded to a $1200 junker (with no ac…with no ac in Oklahoma!). I saved more money like a mad man!
Fast forward. I now own one of the top martial arts academies in the country. My academy is seventeen thousand square feet. The average school is three thousand square feet. All my equipment was paid for in cash. I am profitable, I pay my team well. I sleep at night. But, most importantly I am living my dream.
Learning to get a handle on my finances has allowed me to pursue what I am called to do. I don’t have to compromise my values because of money. I can focus on my mission without worry or distraction of financial constraints.
I wish I would have learned this as a child. I think of how many years wasted. How many opportunities lost, because of my inability to mange my money. Do yourself a favor and get to know the man who inspired me to change my thinking about $$$. www.daveramsey.com
Posted on Tue, May 6, 2014
by Jason Epps filed under