Don't Invest For Kids Before Paying Off Debt
A Ramsey expert warns parents about investing for their children before they get out of debt themselves.
George Kamel, a financial expert at Ramsey Solutions, recently shared important advice. He accepted $1,000 from Donald Trump for his son. But Kamel quickly warned parents not to make a common mistake.
Kamel says parents should focus on their own money first. It makes no sense to invest for a child if the parents still have debt. This includes car loans, credit card balances, or student loans. Paying these off saves a lot of money on interest.
Imagine you put money into a child's account. This money could instead pay down your high-interest debt. The interest you save often outweighs the investment returns. Being debt-free gives you a strong financial base. It also teaches your children good money habits.
Your best move is to secure your own financial future first. This lets you then truly help your children later. It ensures long-term wealth for the whole family.
Source: Fox Business
