Parents, Don't Make This Big Investing Mistake
A Ramsey expert warns parents about a common error when saving money for their children's future.
Many parents want to save money for their children. It is a good goal to help your kids. But one expert says parents often make a big mistake. George Kamel works for Ramsey Solutions. He tells parents to be careful about where they put their money. This is true especially for popular new accounts.
Kamel recently shared his own story. He opened a special account for his son. This account was started by Donald Trump. It offers a way to invest money. Kamel says he took a $1,000 gift for his son. He then put it into one of these new accounts. But he has an important warning for other parents.
Kamel believes parents should pay off their own debts first. This includes credit card bills or car loans. Parents must be debt-free before they invest for their kids. If parents have debt, it costs them money. The interest payments add up. Paying off debt saves more money than investing a small amount for a child.
Think about your own money first. Get rid of your debt. Then, you can truly help your children. This plan builds a strong money future for the whole family.
Source: Fox Business
