Afraid Child Will Work Just to Get Money
Dear Dave,
My husband and I are expecting our first child in a few months. We really like your idea of putting kids on commission instead of giving them an allowance, but I’m afraid this may turn our child into the kind of person who only does things to get money. What’s your advice?
Jennifer
Dear Jennifer,
You can definitely overdo the commission thing. There are some jobs that kids should do simply because they’re members of a family or community, and out of respect for their parents. The key is to find a balance between the chores they get paid for and the tasks they should do because they’re living, breathing human beings with a conscience.
More than anything you’re striving for teachable moments here, Jennifer. You want to teach that there’s a connection between work and money, because that’s how the real world operates. You also want to teach saving, giving and wise spending.
- Dave
Should I buy cancer insurance?
Dear Dave,
I’ve heard you say buying cancer insurance isn’t a great idea. Considering how prevalent this disease is today, I was wondering why you feel this way.
Dino
Dear Dino,
It’s really simple. Any good quality health insurance will cover you in the event that you get cancer. People have heart attacks, too, but it would be foolish to spend additional money on heart attack insurance when you’re already covered.
I recommend having a good health insurance plan, disability insurance and a fully-funded emergency fund of three to six months worth of expenses. This gives you medical coverage should you become seriously ill, disability coverage if the illness prevents you from working, and a big pile of cash to help cover incidentals and other bills along the way.
Hopefully, you’ll never have to experience a situation like this, Dino. But if you do, this will help lessen the burden.
- Dave
What is homeowners insurance?
Dear Dave,
My question is about homeowners insurance. I know I have to have it, but I don’t really know what it does. There are also some terms in my policy that I don’t understand. Can you help?
John
Dear John,
Typically, a homeowner’s policy is written to give you coverage for your structure and dwelling, coverage for liability, and coverage for a percentage of the structure and dwelling that will cover personal assets inside the home – like furniture and other items.
Different policies and different companies can use different terminology, so talk to your insurance agent and ask him to explain any terms you don’t understand in language that makes sense to you. If he can’t do this, change agents!
- Dave
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Dave Ramsey is a nationally syndicated radio talk-show host and best-selling author. His life experience gives him an unusually deep perspective and insight into life and money matters. Be sure to get Dave's "Total Money Makeover: A Proven Plan for Financial Fitness." If you'd rather order by phone, call WND's toll-free customer service line at 1-800-4WND-COM (1-800-496-3266).