5 Money Moves Dave Ramsey Thinks All Parents Need To Make

Core Insights - The article emphasizes the importance of making informed financial decisions for families, particularly through the advice of personal finance expert Dave Ramsey Group 1: Debt Management - Ramsey advocates for the debt snowball method to eliminate debt, with the exception of mortgage debt, and suggests pausing investments during this process to focus on debt repayment [3] - He stresses that raising children is costly, and many parents may find themselves in debt [3] Group 2: Home Buying - Ramsey advises against rushing into purchasing a home, suggesting that renting can be a strategic choice until families are financially ready [4] - He highlights the hidden costs of homeownership that can lead to being "house poor" and recommends waiting for the right time to buy [4] Group 3: Life Insurance - The recommendation is to obtain term life insurance if someone depends on the parent's income, with coverage suggested to be 10- to 12-times the annual income [5] - For stay-at-home parents, a policy worth at least $250,000 to $400,000 for 15- to 20-year terms is advised [5] - Ramsey specifically recommends term life insurance over whole life insurance due to its affordability and the potential for better financial management with the savings [6] Group 4: Retirement Savings - Parents are encouraged to prioritize their retirement savings, even over saving for their children's education [7] - Ramsey suggests investing 15% of household income into retirement accounts to avoid financial dependency on children in retirement [8]