Parents, Avoid This Costly Investing Mistake

George Kamel received a $1,000 gift for his young son. This money came from a new “Trump Account” savings program. Kamel, a financial expert from Ramsey Solutions, faced a choice. Should he invest this money for his son right away?

He thought about what this means for other families. Kamel often helps people manage their money. He knows many parents want to give their children a good start. But he warns about a common mistake. Parents should not invest for their kids if they still have personal debt.

Kamel did not put the $1,000 into an investment account for his son. Instead, he used the money to pay down his own debt. This is because high-interest debt makes saving harder. It costs more money over time. Getting rid of debt first saves more money in the long run.

He tells parents to pay off their own debts before saving for their kids. This includes credit card debt and student loans. Once your own finances are strong, you can better help your children. This path sets up both parents and kids for a stronger future.

Source: Fox Business