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What is Dave Ramsey's approach to financially educate young adults?

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It is very important for young adults to learn about money. It’s oftentimes a struggle for parents to know how to teach it. Dave Ramsey, a popular financier and financial educator, has created programs addressing what young adults should know before they go off on their own. He developed school programs and a home-school curriculum as well. Parents now have a place to go for help. It is a step by step guide to teach high school age children about the basics of finance. The curriculum guide is not free and it’s a shame that more schools are not doing it. The comprehensive program covers enough information to even teach the parents a thing or two about money.

The first unit addresses saving and budgeting. It is an introduction to money management through examples of America’s history with credit cards. It teaches the importance of saving and the purpose to have a budget and the motivation to follow it.

*Save for large purchases

*Save to build wealth

*Maintain a healthy checking account

Credit and debt are tools to keep credit use in check and the remote possibility of an alternative cash advance off the books. Not only is it important to save for wealth, but to fight through emergency pitfalls and keep the budget on the winning side.

Credit and debt make up the next unit. Ramsey’s plan to educate young adults on the price of debt addresses credit scores, credit bureaus and other reporting agencies along with important consumer credit laws. The second unit also addresses finances through the college years. It is important to come out of college without piles of debt. How to take notice of behaviors that may cause problems and what may influence spending behavior.

Ramsey’s third unit discusses financial planning and insurances. It ties bargain shopping in with a healthy financial plan. Knowing how to negotiate for the best price is important. Investing and retirement plans are addressed here too. The sooner you start these plans, the more you will have later. Financial risk management is identified and explained. Calculated risks are explored in risk management strategies.

The last unit focuses on making money, paying taxes and giving.

*Money values

*Communication strategies

*Career strategies

*Setting effective goals

*Strategies for success

*Income and taxes

*Giving back through time, talent and money

In all of Ramsey’s educational promotions he focuses on controlling debt, preparing for the future and giving/tithing as 3 key factors in personal financial management. It’s good to hear a different person’s point of view. Take what you can get out of it and apply what you learned for not only your young adult but your personal finances too.

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