It’s my pleasure to host Rachel Cruze today at MegMeekerMD.com. Rachel is the daughter of bestselling author and financial expert Dave Ramsey. She brings a unique perspective to talking to kids and teens about money. We hope to bring you more financially-oriented posts from Rachel in the future. —Meg

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Guest Post by Rachel Cruze

Let’s be honest. Sometimes, we just make money way too complicated.

Growing up, my parents did a great job of teaching me that managing money is based on one thing: common sense. Despite what you might hear, we all have it!

And the best thing you can do for your kids is to help them start putting their common sense into practice. You’ll do that by teaching them these basic principles of money management:

Work

We talk about it all the time—the most powerful wealth-building tool is your income. That goes for both kids and adults. The 6-year-old you teach to save for a bicycle will eventually turn into a 17-year-old who is eager to save for college.

Pay commissions, not allowances. Your kids get commission for doing chores around the house, like taking out the trash, feeding the dog, and helping with the dishes….