Podcast Summary: The Ramsey Show Highlights

Episode: "Use My Kid's College Fund To Pay Off My Debt?"

Date: December 5, 2025
Host: Ramsey Network (featuring George Kamel & Jade Warshaw)
Duration: ~10 minutes

Main Theme

This episode tackles a listener’s dilemma: Should he use his children’s 529 college savings funds to pay down his debt, or should he keep the accounts intact and look elsewhere for solutions? The hosts, George Kamel and Jade Warshaw, provide tough love and practical advice, focusing on long-term benefits and responsible money management.

Key Discussion Points & Insights

The Listener’s Debt Situation

• Debt Progress:
  • Listener started with $90,000 in debt (10 credit cards, 2 vehicle payments).
  • Over 10 months, reduced debt to $65,500.
  • Cut up 7 credit cards; 3 remain open with balances.
  • Vehicles make up the majority of the debt.
  • ([00:02]–[00:35])
• Debt Snowball Success:
  • “Anytime I’ve got extra income, I’ve put it towards the debt snowball. I’m trying to get out of baby step two as fast as possible.” (Caller, [00:35])

The 529 College Savings Dilemma

• Background:
  • Two 529 accounts—originally $4,000 for each child, now totaling $11,500 due to growth and transfers after older child opted out of college.
  • Eight to nine years before youngest might use the funds.
  • Question: Should he withdraw the 529 savings (with penalties) to pay off debt, or leave them to grow for college?
  • ([00:45]–[02:04])

Car Purchases and Financial Decisions

• Car #1:
  • 2022 Hyundai for wife: $15,000 left to pay. Value unknown but likely not upside down.
  • Motivation: Desire for family reliability after “driving hoopties.”
  • ([02:13]–[03:14])
• Car #2:
  • 2024 Toyota truck: Bought new after receiving a large bonus; $54,000 purchase, $30,000 still owed.
  • Motivation: Emotional spending, feeling justified after years of frugality.
  • “I’m gonna spoil myself with a new vehicle…” (Caller, [04:31])

Income and Family Dynamics

• Listener earns ~$72,000/yr; wife works part-time but recently started increasing hours. Combined pre-tax income reportedly near $120,000/yr (~$7,000–$7,500/mo net).
• Wife not interested in managing finances; listener handles budgeting and debt payments.
  • ([03:14]–[06:18])

Expert Advice & Notable Quotes

On Raiding the College Fund

• George Kamel:

  “I would not crack open my child's piggy bank to essentially make my truck payment.” ([06:34])

  • Emphasizes avoiding penalties and lost future growth by leaving 529s untouched.
  • “That $11,000 quickly turns into $7,000 [after penalties], and you’re unplugging the growth… that’s going to, you know, double, triple by the time your kid’s in college.” ([06:41])
  • Advises listener to seek sacrifices in present consumption, not the child’s future.
  • “I would sacrifice for my own life before hurting the kid’s future. Sell the truck, work extra— I would not touch the 529.” ([07:13])

On Vehicle Debt

• Jade Warshaw:

  "It's just too much of your world to have this much tied up in vehicles that are going down in value.” ([07:13])

  • Points out risk and poor value of holding onto depreciating assets instead of building wealth.
  • Recommends reassessing car ownership and selling expensive vehicles to free up cash.

On Emotional Spending

• George Kamel:

  "All your caveats, all of the things that you were trying to qualify. It’s emotional, and I get that... You wanted to feel like your income was being spent on the things that you enjoy. Right? Am I wrong?" ([04:53]–[05:15])

  • Validates the emotional triggers behind big purchases but urges practical action to regain financial control.

Memorable Moments & Tone

• Lighthearted banter about justifying purchases:

  “I don’t want to hear about the ex-girlfriend this car...” (Jade Warshaw, [03:43])

• Hosts show empathy while giving tough love:

  “You’re a man. You want your wife to feel like she’s, you know, that you love her and you want to spoil her a little bit. I see it, I hear it, I have felt it. And you called in, trying to figure out how to get out of debt faster. True.” (Jade Warshaw, [05:17])

• Direct call to action:

  “Sell the truck, work extra— I would not touch the 529.” (George Kamel, [07:13])

Timestamps – Important Segments

• [00:02]–[01:45] – Caller describes debt, student loan, and 529 situation
• [02:13]–[04:44] – Explanation of car purchases and financial motivations
• [05:15]–[05:34] – Hosts unpack emotional motivations and provide validation
• [06:34]–[07:21] – Final answers: Do not use 529 funds, sell vehicles instead

Final Takeaways

• Don’t raid kids’ college funds for personal debt: The penalties, taxes, and lost compounding outweigh any short-term relief.
• Address the source of debt—especially vehicles: Expensive, depreciating cars are a major drag on household wealth.
• Sacrifice now to build for the future: Success comes from enduring current discomfort, not mortgaging your children’s opportunities.
• An honest look at emotional spending is key to making better choices moving forward.

Summary:
If you’re tempted to use your kids’ college savings to plug debt holes, the Ramsey team has one word: don’t. Take a hard look at your assets, cut lifestyle costs, and remember—short-term pain paves the way for long-term gain.