A Parent's Big Money Mistake
A money expert shares a key warning for parents about investing for their kids before getting out of debt.
George Kamel works with Ramsey Solutions. He is a money expert. He recently talked about a financial choice he made for his son. Former President Trump sent out checks for $1,000 to some people. Kamel took this money for his child.
But Kamel gave a big warning to other parents. He said many make a costly mistake. They try to save money for their children's future. This happens before the parents pay off their own debts.
Kamel explained the math behind this. He calls it an "opportunity cost." If you owe money, you pay interest. This means you lose money. If you invest for your child while still in debt, your debt grows. The interest you pay might be higher than what your child's investment makes.
Parents should pay off their own debts first. Get rid of car loans, credit card debt, and student loans. This frees up money. Then you can invest for your kids. This way, your family's money grows stronger. It builds a better financial future for everyone.
Source: Fox Business
