Preparing Kids for Financial Responsibility with Ron Blue

Sep 6, 2024

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A recent survey shows that most parents think they should teach their kids financial literacy; the good news is that many are actually doing it.

Still, other parents may not know how to teach their kids financial responsibility. Ron Blue joins us today to discuss how he and his wife, Judy, did it.

Ron Blue is the co-founder of Kingdom Advisors and the author of many books on biblical finance, including “Your Kids Can Master Their Money: Fun Ways to Help Them Learn How.”

The Importance of Financial Education at Home

A recent survey by the Bank of Oklahoma Financial reveals that 85% of parents believe they should teach their kids about financial responsibility, with many acknowledging that this should also be a part of school curricula. However, a significant portion of parents, about one-third, feel that schools aren't sufficiently addressing this topic. Encouragingly, 65% of parents are actively teaching their children about money management.

Children learn best by observing their parents’ financial habits. The old adage "more is caught than taught" rings true—kids learn to manage money by seeing how their parents handle it. However, teaching financial responsibility has become more challenging with the rise of credit cards and digital transactions.

Age-Appropriate Lessons For Children

For younger children, Ron Blue and his wife Judy used a simple yet effective method: the envelope system. Starting at age eight, their children received envelopes designated for different purposes: giving, saving, spending, gifts for the family, and clothing. This hands-on approach taught the kids about budgeting, prioritizing, and the importance of giving.

As their children entered high school, they introduced them to more advanced financial tools, such as credit cards, while educating them about responsible usage. This early exposure helped their children understand the implications of credit and the importance of managing money in a digital society.

Today, parents have even more resources at their disposal. Ron Blue suggests using debit cards and budgeting apps, such as the FaithFi app, to help children manage their finances. By teaching children about money early on, parents can equip them with the skills and wisdom needed to navigate the financial challenges of life.

On Today’s Program, Rob Answers Listener Questions:

I had a stroke and had to retire early, and now the only thing I have is my home. I received a letter about a reverse mortgage, and I was wondering if that could help me.
I was just curious about your thoughts on Fisher Investments and whether 1.25% is too much to pay for the management of my funds.
I'm on disability, and I'm eligible for Social Security, but I can't draw both at the same time. My Social Security is substantially higher than what my wife would be. Can she draw mine?
I have a mortgage on a new home and want to refinance due to the high interest rate, but I'm unsure if I should wait, recast the loan, or put money towards the principal. What are the advantages of those options?

Resources Mentioned:

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