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Financial guru Dave Ramsey says debt is the reason for low financial literacy

Published: Friday, May 11 2012 1:03 p.m. MDT

FILE-This July 29, 2009 file photo shows financial guru Dave Ramsey in his broadcasting studio in Brentwood, Tenn. Ramsey doesn't deny mixing religion and business, and he doesn't apologize for getting rich doing it, either. When GoBankingRates.com asked financial guru Dave Ramsey what contributes to today’s lack of financial literacy, the money mentor simply said, “Debt.”

Josh Anderson, Associated Press

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When GoBankingRates.com asked financial guru Dave Ramsey what contributes to today’s lack of financial literacy, the money mentor simply said, “Debt.”

“It’s become normal,” Ramsey told GoBankingRates.com “It is sold so aggressively that many have come believe it’s a financial tool. It’s not. Debt is dumb. It magnifies your risk in any situation. It prevents you from building wealth.”

To Ramsey, financial literacy means more than simply learning how to deal with money.

“I say finance is 80 percent behavior and only 20 percent head knowledge,” Ramsey told GoBankingRates.com. “You’ve got to make the shift in attitude. You’ve got to get sick and tired of being broke in order to make the necessary behavior changes to win with money.”

He also told the finance site that the recession was “a wake up call for most people” and financial literacy is the “same common sense our grandparents practiced.”

EMAIL: jferguson@desnews.com

TWITTER: @joeyferguson

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