This is part of the series Catalyst 2013.
Dave Ramsey, of course, is host of the popular Dave Ramsey Show. Rachel Cruze is his daughter, who also speaks on issues of financial stewardship. Dave and Rachel spoke together at Catalyst, and it was a lot of fun to watch. Here are my notes.
Early in their marriage, they were borrowing money to buy houses and flip them. Things were going well, but Dave was borrowing too much money. The bank got sold and called in his debts, and they couldn’t pay them on the time table. They lost everything over two-and-a-half years.
“I remember being so scared I couldn’t breathe. I would stand in the shower and cry. I met God on the way up, and got to know him on the way down. We hit bottom.”
September, 1988, 25 years ago, they filed bankruptcy.
Rachel: “I was born that year. I was born in April; mom and dad filed for bankruptcy in September.”
They changed their whole approach and began managing their finances biblically. Rachel grew up under these new mindsets.
So, how do you raise your kids with sound financial stewardship? 3 principles
Teach your kids clearly that God owns it all, not you. This changes what you do with everything. You are simply managing God’s resources.
Money makes you more of what you already are. If you are a jerk and you get some money, you’re going to become a colossal jerk. But if you are a servant and you get a lot of money, you are able to truly change the world for the kingdom of God.
If you add up the income of your ten closest friends, your income will be within 10-15% of that average over time.