Ramsey Expert Warns Parents on Kids' Investing

George Kamel, an expert from Ramsey Solutions, faced a big question. Former President Donald Trump gave Kamel's young son $1,000. Kamel accepted the money for his child. This gift then led Kamel to speak out about a common mistake parents make.

Kamel warns parents not to invest for their children too soon. He says parents should get rid of their own debt first. This includes credit card debt, car loans, and student loans. Becoming debt-free is the first step to financial health.

He explains the math behind this choice. If parents have debt, they pay interest on that debt. Investing for a child while still in debt can cost more money in the long run. The interest paid on debt often outweighs the gains from small investments.

Kamel's advice is clear. Focus on your own financial freedom first. Then you can build a stronger future for your children. This approach helps the whole family win with money.

Source: Fox Business