Home Financial responsibility DAVE RAMSEY: I wouldn’t go that far | Business

DAVE RAMSEY: I wouldn’t go that far | Business


Dear Dave: Our son is in high school and he has a part-time job. He has good grades and we have always tried to teach him how to save and manage his money according to your advice. He even managed to set aside a few thousand dollars for college. My wife and I were talking the other night, and I broached the idea of ​​charging her a little rent, maybe just $20 or $25 a month, to help her be even better prepared for the world. real. What do you think of that?

Dear Keith: I appreciate the fact that you are looking for teachable moments. But making a high school student pay rent? No, that’s a bit of an exaggeration.

Listen, you and your wife already have a head start on a lot of parents. Teaching him financial responsibility and the importance of education are great things. It sounds like your son is also a bright and motivated young man.

I talk to adults all the time who are decades older, but who still don’t grasp the concepts of maturity and responsibility like this kid already does. With the kind of start you’re giving him, I think he’s going to be a very successful adult. Keep up the good work and let this young man know how proud you both are of him!

Dear Dave: I own a small business. How much should I have in a business emergency fund when my annual sales are around $100,000? Currently, I have two months of expenses aside.

Dear Therese: In general, I like the idea of ​​small businesses having about six months of expenses in hand. This type of cushion usually eliminates the need to borrow money. It also offers peace of mind. And if you’ve been an entrepreneur for a really long time, you know that’s invaluable.

Having a personal emergency fund set aside is a little different from having one for your business. When it comes to personal finances, I recommend setting aside three to six months of expenses. The basic idea is the same, however. A fully funded emergency fund gives you an option, besides debt, when unexpected events happen!

Dave Ramsey is a personal finance expert and host of The Ramsey Show.