Ramsey Expert Warns Parents on Kids' Savings
A financial expert warns parents about putting money away for kids before getting rid of their own debt.
George Kamel works for Ramsey Solutions. He recently talked about a big mistake parents make. He explained why saving for a child's future too early can cost families more.
Kamel received $1,000 for his son. This money came from Trump Media and Technology Group. Kamel looked at how this money would grow over time. He found that $1,000 could become a large sum. After 65 years, it might turn into over $1 million.
But Kamel then shared a strong warning. Parents should not invest for their children if they still have debt. High-interest debt, like credit card balances, costs families a lot. Paying off debt first saves more money in the long run. This is better than putting small amounts into a child's account.
Parents can make sure their own finances are strong. This financial strength helps their children more than early investments. It stops a cycle of debt. It builds a secure home base for everyone.
Source: Fox Business
