Dave Ramsey shares the common-sense way to give your kids millions “with strings attached”

Dave Ramsey gets a lot of callers on the Dave Ramsey Show. While some of his callers talk about their financial setbacks and ask Dave for advice, the financial guru recently got a call from someone who is in a good place financially. 

The caller is due to receive a $2 million inheritance but wants to take half of it and spread it across his three children. Each of the children has a job and good financial discipline. Dave spent time congratulating the caller while sharing valuable insights for parents. Dave posted the exchange as a YouTube video, but we’ll give you the spark notes downbelow.

Money Makes You More of What You Already Are 

Dave mentioned during the call that money makes you more of what you already are. He brought this up when the caller expressed concern about spoiling his children. However, the children are fully grown adults, and Dave says that you can’t spoil them any longer.

When people become adults, many of their financial habits are set. It’s possible to change, but financially disciplined individuals tend to stay that way. He warned that a loser will remain a loser no matter how much money you give them. Under that scenario, it’s good to have more strings attached. Giving money to someone who is going off the rails isn’t a loving act and can further enable their financial spiral. However, that’s not the case with this caller’s children.

Attach a Condition

Dave shared a story about one of his friends who gave money to his children and helped them pay off their mortgages. However, the benefactor required that his children never get into debt again. If you are giving a large sum to your children, you can impose similar conditions.

When you receive a large lump sum, you’re not supposed to feel like you won the lottery. Dave mentioned that he showed his children how much his estate is worth. He then said that they have a responsibility and duty to maintain the estate and carry the legacy forward. Mentioning the pressure and significance of maintaining the inheritance and family legacy can help the recipients be more careful about how they use their money.

Giving the Children Advantages

The extra money can accelerate the children’s paths to major financial goals, such as becoming debt-free and owning homes. While the children seem like they will be able to achieve these milestones in the future, the inheritance lets them check off these items sooner. That can help the children start their own families sooner and raise their own children.

The caller and his wife are already in a good financial position. They are both debt-free and have plenty of cash. Giving money to their financially disciplined children sounds like a smart move.