Teaching kids to be financially responsible is a crucial lesson that can begin at any age, and according to personal finance expert Dave Ramsey, the earlier, the better. He recently shared insights on how he instilled financial responsibility in his children and the lessons Gen Z can take from that approach.

“We taught them to work, it’s an old-fashioned thing. I think it’s called child abuse now,” he joked. Ramsey emphasized that having his children work was key in helping them develop a strong work ethic, which he sees as the foundation of their success today.

For Ramsey, building a strong work ethic is essential because it builds character, something he believes is critical for managing wealth responsibly. Without character, he warns, wealth can lead to entitlement and irresponsibility. Once someone has developed a strong work ethic, “you’ve got someone of character that can carry the weight of wealth,” Ramsey explained. “Wealth is heavy, and you don’t want to put it on someone who’s weak, because it’ll destroy their life and turn them into a trust fund baby, and they’ll have their own reality show.”

In speaking about younger generations, Ramsey expressed admiration for Gen Z, calling them amazing and powerful while also acknowledging the challenges they face today. He pointed out how difficult it can be for them to enter the housing market, given stagnant wages and skyrocketing home prices. This frustration, he said, mirrors the challenges he himself faced at 23 when high interest rates created similar barriers.

Ramsey offered encouragement, urging Gen Z not to see their current struggles as permanent. Drawing from his own experiences, he reassured them that “your life is not a snapshot, it’s a filmstrip.” Life, he emphasized, is made up of a series of moments, and while things may be difficult now, opportunities will come in the future.

His approach to teaching financial responsibility highlights timeless values like work ethic and character as essential for managing wealth wisely. Ramsey’s reflections offer not only practical advice but also encouragement for those navigating today’s economic challenges.