Ramsey Expert Warns Parents About a Common Money Trap
A Ramsey Solutions expert shares a story about Donald Trump and warns parents against a big mistake when saving for their children.
George Kamel works for Ramsey Solutions. He once received a $1,000 check from Donald Trump. This money was for Kamel's son, born shortly after Trump's election. It sounds like a great start for a child's future.
But Kamel chose not to put that money into a special account for his son. Instead, he used it to pay down his own debt. This decision highlights a common money mistake many parents make. They want to give their kids a good start.
Kamel warns parents not to save for their children's future before they get out of debt themselves. He says putting money into a child's account, like a 529 plan, while still owing money can cost more in the long run. The interest on debt often grows faster than investment earnings. You lose money paying interest.
His advice is clear. Focus on paying off your own debt first. Then, build up your savings. After that, you can invest for your children's future. This path sets up both you and your kids for success.
Source: Fox Business
