We address the role of correlations between spin and charge degrees of freedom on the dynamical properties of ferromagnetic systems governed by the magnetic exchange interaction between itinerant and localized spins. For this we introduce a general theory that treats quantum fluctuations beyond the random phase approximation based on a correlation expansion of the Green's function equations of motion. We calculate the spin susceptibility, spin-wave excitation spectrum, and magnetization precession damping. We find that correlations strongly affect the magnitude and carrier concentration dependence of the spin stiffness and magnetization Gilbert damping. © 2008 The American Physical Society.