Smart Money, Smart Kids Review: Chapters 7 & 8

Dave Ramsey and Rachel Cruze’s new book Smart Money, Smart Kids is releasing on April 22nd. On the Smart Money, Smart Kids website ( you can pre-order the book and get more than $50 in FREE extras to help you raise money-smart kids! The pre-order includes a copy of the hard cover book, the audiobook, a video lesson, and the eBook. There is also an option at the bottom of the website homepage that allows you to enter your email address and get the introduction and first 2 chapters emailed to you now!


In chapter 7 & 8 of Smart Money, Smart Kids, Dave and Rachel discuss debt and college funding. One of the main concepts of the Ramsey plans is living debt free. While most people are generally not pleased with being in debt, our society accepts it as a way of life and continues to live in debt, regardless of how that may affect their own lives and that of their families.

Any of these sayings ring a bell?

“I’ll always have a car payment.”

“Of course you need a mortgage to buy a house.”

“Student loans are ‘good’ debt.”

The great news for you is that you can prepare your child to avoid this living in debt. Remember what Dave always says, “winning with money is only 20 percent head knowledge; it’s 80 percent behavior” and “more is caught than taught”. As parents and the generation shaping our youth, we must be cognizant of the messages we are sending to the next generation. They are watching and soaking in all that we do and say; therefore, having the discussions and utilizing the teachable moments about living debt free are essential. Some of those discussions will surround credit cards, using cash, and saving for a car or college. All of these practical applicabilities will help to set your child up for success when it comes to managing money and finances.


Dave and Rachel share a staggering statistic in their book Smart Money, Smart Kids that “current college graduates are leaving school with an average student loan debt of $27,000”. Yikes! It doesn’t have to be that way,

A lot of debt can be prevented in the next generations to come by careful parent and student planning in regards to school choice, financial aid, working to save and while in school, and your student living a reasonable lifestyle.

In order to assist in saving for your child’s college fund there are a few considerations that Dave and Rachel recommend, which are discussed in more detail in the book.

1)    You’re out of debt personally

2)    You have a full emergency fund of three to six months of expenses

3)    You’re contributing 15 percent of your income into retirement

A discussion of college savings plans is covered, including information on an (ESA)Education Savings Account and 529 Plan.


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