Parents, Don't Make This Big Money Mistake
George Kamel explains a common money mistake parents make when saving for their kids' future.
Many parents want to save money for their children. They dream of helping with college or a first home. But finance expert George Kamel says parents often make a big mistake. He knows this well. Kamel himself accepted a $1,000 gift for his son from former President Trump. This gift could go into a special savings account for children.
Kamel works for Ramsey Solutions. He warns parents to be debt-free first. This means paying off your own car loans, credit cards, and student loans. If parents have debt, they should not open savings accounts for their kids. The money used for a child's account could go to pay off the parents' debt instead. This helps the whole family more.
Parents might think they are helping their kids by saving early. But high-interest debt costs more over time. Kamel says it is like trying to fill a bucket with a hole in it. If you have debt, money leaks away. You pay more in interest than you gain in savings for your child. Pay off your debt first. Then, you can save wisely for your children's future.
Source: Fox Business
