How Do I Tell My Teenager She Is Getting $1,000,000? 

Caller: My Daughter is getting $1,000,000 Dave: Sell your car

Having too much money is a good problem to have. Teaching her to be financially literate and responsible should be a priority.

Honestly, I'd wait until she's 17 just to get her prep up for it, but I'd start to teach her money management right now.

My friend found out that same thing when she was a teenager. Do Not Tell Her.

I would wait. Whats gonna happen is she will tell everyone at school and it will be an issue

“My goal is not to raise good kids. My goal is to raise good adults” -Papa Dave Love this!!

I’m glad the father has the financial literacy & understanding to inquire about the best way to bring up this blessing to his daughter. He definitely seems like a great father!

5 years later: Hey dave remember that call 5 years ago? Well she blew it all.

I have a friend who knows she’s inheriting money and she refuses to work or be independent. Don’t tell them the amount smh 🤦🏾‍♂️

We had our kid do FPU at @17. At 18 we showed him his account. He freaked out and asked us to keep it safe for now. He s in a college free tuition on rice and beans and he s happy not to tiuch his house down payment. His choice.

I inherited enough to retire comfortably at 45 years of age and I'm so glad I didn't come into that money at a young age because it would have been long gone before I turned 30.

I know a girl who was left a million dollars and she immediately moved to a apartment in Manhattan and traveled most of Western Europe. She pisses it away on nonsense. LoL

Tell her about it when she's 15. Not the amount, just "there's money there for you to start your life properly" In the meantime, teach her about managing finances properly, and planning for long periods of time.

I hope dad tells daughter that having money makes her a target and she should keep her mouth shut about it and not financially draw attention to herself.

"What's it invested in?" *guy realizing its sitting in a savings account* "uh uh a conservative mutual fund"

I'd tell her when she's in high school and starts talking about what she wants to do with her life. She'll need to know she won't qualify for financial aid but will be able to afford to go where she wants and do what she wants. I had a college friend who received much more than this and it motivated him to be very successful because he felt a weight on his shoulders to use it responsibly.

To lose your mom in life, it's like losing 50% of your life.

As an agnostic, I like how Dave let's his Christianity be know but doesn't impose it on others.

Oh, and make sure she gets a job. Just because she’ll be a millionaire at 18 doesn’t mean she shouldn’t learn how to work hard.

While nothing can replace the loss of her mother, the $1 million(if managed correctly) will mean the girl can basically be financially free for the rest of her life.

If she gets access to that money all at once it’s pretty much gone. She needs a financial education and that typically doesn’t happen by 18.

Dad needs to teach his daughter about keeping QUIET about the money she has. Extremely hush hush friends and Boyfriends! Of course Boys will want her she has so much money!!!! I wouldn't tell ANY boyfriend or Fiancé until engagement or after marriage. She wont find "The One" telling him she has 1 million. HUSH IT!!!

Tell her now so she doesn't have to worry about pursuing a tuba degree

Take her when you shop. Help her learn to make good choices spending money. Show her how bills are paid. Have her open her own checking account which you can help manage until she's 18.

You don't want to feel like you've won the lottery. You want the feel the weight of the responsibility.... I am in a very similar situation right now....and this is exactly how I feel.

The Father has the foresight to have a plan for his Daughter's future.

Tell her it’s 1 million bucks to get her excited then say “it’s just a prank bro” that way she gets some excitement out.

this girl will end up with a lot of fake friends if she's told how much she's getting if she's the type to tell others about this sort of thing. questionable what it will do for her work ethics through the rest of school and getting a job. this requires proper careful preparation.

Having not listened to Dave's response yet, my first thought would be to wait until she's about 17 and a half to tell her. And have her take financial peace around that time.

It depends on the kid. I would tell mine today so that it would have years to sink in and we would discuss investment opportunities. And we would watch the lotto winners that went broke and how that's not what you want to do with life.

I think 13 is a little young for talking about the actual account. When I was 13 I was playing video games with my friends till 3 AM. Teach her money management skills on a lower level. See how she does with a 100$, then maybe 500$, etc.

He's teaching her how to manage money, which is the greater skill. What she does with it at 18 isn't something he can directly control, but the hope is she uses it responsibly.

I would take her to an estate attorney and more important a good brokerage. I would explain that the avg American makes around 50k annually. If she invests in dividend earning stocks and a good mix of mutual funds she should be able to bring home $50k a year for the rest of her life without working. If she squanders the money. $1 mill is only 50k a year for 20 years and she’ll be broke at 38 like many Americans. $1mill isn’t really much. If she lets it double 2 more times by the time she’s 35 she could have $4 million and make $200k annually in dividends. While her friends are squandering money on Tuba and gender studies degrees, she can work a normal job and her money will grow.

I’m still waiting for my parents to tell me this whole full time work life is just a joke and they have millions upon millions of dollars for me to live off of for the rest of my life

I inherited a decent amount of money when I was 11. I didn't have access to it until i was 16, but unfortunately for me, my paretns weren't the most money-wise and didn't teach me how to handle my finances properly. It wasn't nearly as much as this girl is going to get, but looking back now, I could have invested or used it so much more wisely than I did, because at 27 having that amount of money would change my life. I think if she has a good head on her shoulders she should be told, closer to the time. But it's going to take a lot of work from dad to teach her all the skills she needs to be able to handle this responsibly when she turns 18. Pretending it doesn't exist isn't going to make things easier in 5 years.

I would explain to her that if she just keeps that money in those mutual funds, she can already live off the interest for the rest of her life, provided that she manages it sensibly. She could also reinvest it in real estate, if she prefers. Spending a huge chunk on college seems like a big waste.

Invest it in mutual fund that pays 4% dividend and she'll get 40k a year. It's Gona be a good life

My grandson is in this same position, lost his Momma at age 6. He is now 9 and I speak with him about money management NOW,and he is learning about tithing, saving and spending. Building his character and sense of responsibility using Ramsay’s kids money management has helped us tremendously, to instill strong values. Praying to God that this approach pays off toward establishing a solid financial future for him.❤️

By the time she's ready for college, tuition will be a million dollars

"APPROACH IT THROUGH FAITH. WE ARE A FAMILY OF FAITH." I LOVE THIS MAN. PRAISE GOD IN THE GOOD AND THE BAD

I'd never trade a parent for $1,000,000, but this girl is set for life if she can be disciplined. She could work her whole life at McDonald's and be living in a mansion.

Wait until she’s had her first job and she can learn to recognize and appreciate the value of money

I put my son in the first FPU class at age 11 again at 13 and Again it 15.. he is all set .!!

If he tells her now she will spend the next 5 years planning on how to spend it.

Teenage me with $1,000,000 would have been a complete disaster.

At 13 I would only tell her that there is money for college. That’s it. When she’s done with college I would tell her there is more. IMO

I wouldn’t tell her the exact amount. When she is 18 though there is nothing he can do about it. She will be of age. It’s her money. Hopefully he wont take any of it from her. Parents sometimes think they DESERVE what is their children’s.

Great advice. Need to communicate, prep and give her a vision of what her life could be like in the future...

Such awesome advice. Love it. Help her learn about the power of investing.

He did the right thing. Only tell her that college is taken care of as long as she gets the grades to get in. In the meantime, focus on teaching good ethics, self discipline, self care, discernment of people, and wealth management and make her learn the value of hard and smart work while you can. And of course do ut all with great love so that she knows that when all the fake friends come her father has her back and best interest at heart.

I’d start training her how to manage it when she’s 15 while you still have the authority to take control back from her. I’d also make her get a summer job in high school.

I am very grateful for having a mom who always thought In money terms. It spilled onto me, and I as well will spill it onto my future child.

It's her money, prepare her for the day she gets access to it. He won't be the conservator forever

I would put it in trust until she was 25. When we had our wills drawn up the lawyer recommended making the age of inheritance if something happened to us as 25, as by that age they will have worked and have a better idea of how to deal with an inheritance and make the most of it.

😂 when they tell me i got the privilage of handling the money for others... wait until i turn 18 and lets see whos money it is lol

Teach her financial responsibility now and how to manage and live off of it.

Plot twist: daughter watches Dave Ramsey

I'd give her a trial run of money and teach her how to properly spend/invest. That is a lot of money for an 18 year old to have.

Never tell your friends or anyone in school that you have 1 million “paper” in your bank account once you reach 18. 😅

I hope to god that girl decides to let dad hang onto it and keep it invested as long as possible and that she keeps it invested for as long as possible, that’s some serious cash that’s going to add up to a very sizable retirement, and give her the ability to seriously bless her future family.

I agree with Dave, I think conditioning her to understand the value of money and forming habits will definitely be a hedge against her overspending at 18.

Don’t . My brother got in an accident and got money when he turned 18 and it blew it all and made poor decisions .

Money should really go into some sort of trust or restricted account - she gets x amount per year (enough to pay for college or whatever) until she's like 25 when she gets access to the remaining full amount.

She needs to know not to tell other people. And keep it invested!!

Put it in an investment account, and have it set to start paying her dividend the moment she gets her first real paycheck. That way she can't spend it all, and learns to stand on her own feet. Have the account transfer to her name fully after she holds her first real job for five years.

The mind is of a 13 year old is still developing. There’s point in life where they won’t be able to identify what’s right and wrong at that age. There isn’t emotion and mental development fully.

Imagine the girl is listening to this live, doesn't realize it's her dad and she comes home from school to her dad who sits her down and tells her she has some money for the future.🤣

Same thing is gonna happen to me at 18, I’m 17 and have a job and pay bills.Thank god for my mother raising me right.

She's going to find out sooner if she listens to this show...

It would probably be best to first ask her throughout her teenage years what she would do with a million dollars? You can get her mindset about money and start to groom her to be responsible until the day the money is released to her

Wow....I have a good friend who was a personal injury lawyer. He always arranged a structured settlement for minors who got awards--an initial award at the time (enough to cover the legal expenses), then a reasonable amount that was intended to cover college expenses from ages 18-25, with the balance at age 25. The obvious goal was to get them educated and a little mature before allowing them to blow a huge amount of money. I started an educational trust for my daughter on the day her adoption was finalized. Those terms were that the trust could pay all educational expenses. She would get any balance left at the completion of her masters degree or age 35, whichever came first. Again, my logic was that after completion of a masters, she'd be ready to settle down, think about a house or whatever....and if she wasn't decently mature by 35, she was never going to get there. This money, properly invested, could basically support her for the rest of her life. She needs to understand this, as well as how it can be used. Bottom line, she could take out enough for college each year and leave the rest invested....and that's where you want her to be in terms of financial literacy. We used to joke about the million dollar babysitter--a young woman who was severely injured in a car accident...and after about a year of multiple surgeries, etc. she went right back to her life just as if this settlement didn't exist.

I thank my dad over and over again what a great role model he was and how he taught me about money management from childhood. He grew up poor and was smart enough to figure out how to work and invest his way out of poverty and was really smart enough to involve my brothers and me from the youngest of ages. We too had an envelope system and he would talk with us about what money meant for both securing our futures and for enjoying the allotment we were meant to spend, and to give to charity. I did not have a million dollars waiting for me at age 18, but those kinds of lessons would have taken me very far if I had - my dad imparted a sense of what has value and what was waste. I am 64, he is 91 and those lessons have served me throughout my life.

Sad she lost her mom. But this is a fantastic financial opportunity for this young girl to learn to take money seriously at a young age. She should definitely keep to herself the amount of money she has from friends, or use it as a test to see who the real friends are(the ones that don't ask for money).

Approach it from... "Live on the interest, don't touch the principal. Add to the principal and you'll get more interest. You'll never want for anything for the rest of your life."

I'd be a humbled sir with this settlement! I work it well and be comfortable for a life time

First of all she is a kid she doesnt need to know anything till she is almost 18 years old, no reason to tell a kid at that age she would be telling all her friends shes a rich girl & thats bad mistake which will give her friends possible crazy ideas God forbid...

Today I finally finished my debt which was a personal loan of 10k, next year I will finish the student loan debt of 5k, situation improving!

She shouldn’t touch it she should put it in a low risk high dividend stock

I think when you tell her should depend on her maturity. Some 16 year old are more mature than others.

Imagine coming home after a bad day at school. The guy you like is into someone else. Your best friend is slowly drifting away from you. Your teachers are being buttheads and then outta of no where your dad tells you you’re a millionaire. I would overdose on happiness.

Tell her when she is 25

I inherited about 20 grand from my Dad when I turned 23. We always knew we would get what was left of the trust but didnt know how much. I was young, stupid and in a toxic relationdhip so aside from having to replace the engine in my car it was blown on nothing within a year. I wish I never knew about it and that my uncle just gave it to my mom to hold on to for another few years when I matured and got my stuff together.

If she never touches the principle And live off the interest She would be smartttttttttt

Well put, Dave! I'm teaching your Foundations class to my high school students, and I'll have to share this with them.

Tell her how much wealthier she can be if she leaves it and lets it grow.

this is some of the best money advice for young people that you will ever hear. A million dollars to most people is seen as a ticket to easy street. The answer is, "it can make your life better but it can also wreck you if you decide to use it poorly." Dave is right, money is a tool. Tools are extremely helpful but they can also be dangerous.

Make it like a yearly payment. All at once would drive anyone insane.

Without watching the video yet, you don't tell her. Tell her when she is 18, but set it up for her to receive from it at 25.

My wife and I plan on investing money every month into an account that is meant for our children. We are not going to tell them about it or give it to them until they are financially independent and understand money (we hope to make it a wedding gift). Maturity and experience earning money are huge factors in a decision like this.

I inherited money at 18 I wanted someone to guide me but unfortunately I didn't have any guidance.

*don't*

I'm still hoping that someday my parents tell me we are secret millionares, and that they've been keeping me from the money so i wouldn't get spoilt.

So sad about her mom :(. Her mom would be far more valuable than money, and people are speaking of how rich she is going to be etc. without considering what the cost of that money was!

Why not go through Financial Peace University for Teens with her? It would give her a great financial foundation for her future and it would be a experience that you shared together.

Im in the same place. Not as much but enough to buy a nice home. My child is 5 though.

My daughter got a settlement when she was 12yrs old. She’s 19 now. Freshmen in college. Although she’s 19 now, I haven’t given her the money yet. I told her when she finishes college I will give her the money. I see she still doesn’t know how to manage her money so I’m still holding on to it. I’m hoping by 22 she will be a little more responsible.

Tell her she inherited enough to pay for nearly any college

so many people in the comments are contradicting dave and saying that he shouldn’t tell her until she’s an adult, after college, etc. do you guys not understand that that’s not legally possible? the money belongs to her in its entirety the moment she turns 18.

Make her work for it. Give it like a paycheck, $500 a week, teach her financial literacy

Give a budget to her and show her how money works. When she runs out the first time... and she will.. tell her the budget only allows this much. Not being able to buy something that you really want will show you how money works.