Parents, Do Not Make This Investing Mistake
A money expert shares a key warning for parents about investing for their children before paying off their own debts.
George Kamel works for Ramsey Solutions. He is a money expert. He talks about important money choices. Recently, he shared a personal story. He received a check from Donald Trump for his son. The check was for $1,000. Kamel decided to use this gift wisely.
Kamel put the money into an investment for his son. But he had a warning for other parents. He said parents often make a big mistake. They invest for their children too early. This happens before parents become debt-free themselves.
He explained why this is a problem. Money grows over time. If a parent has debt, interest grows on that debt. The debt interest often grows faster than investment money. So, it is better to pay off debt first. Get rid of your own credit card and car loan payments. Then, start saving for your children. Your money goes further when you have no debt.
Source: Fox Business
