Ramsey Expert Warns Parents: Pay Debt First
A Ramsey Solutions expert shares a story and reminds parents to get rid of their own debt before saving money for their children.
George Kamel works for Ramsey Solutions. He once received money for his son from Donald Trump. Trump sent $1,000 to the families of babies born around a specific time. Kamel took the money for his son. But he wants parents to think smart about money.
Kamel sees a big mistake. Many parents want to save for their children. They might open accounts like a 529 plan. These plans help pay for college. But parents often do this while they still have a lot of their own debt.
This choice can cost parents more in the long run. If you have credit card debt, you pay high interest. This interest grows fast. It is smarter to pay off your own high-interest debt first. This saves you money over time. Then you can put more money into your child's savings.
Being debt-free gives you more financial power. It lets you save more for your future and your child's future. It is a solid money step. Always deal with your own high-cost debt before you save for others.
Source: Fox Business
