Would You Use Kids' Money to Pay Debt?

**terry1156** · 11-21-2004, 06:33 PM

Re: Would You Use Kids' Money to Pay Debt?

First, you are doing great thinking ahead for your kids. They will appreciate you thinking ahead for them.

Why don't you make a compromise with the money. Use it to pay off the credit cards and then pay the amount you were paying toeard the credit card into their accounts. The result would be that you are paying the credit card interest to your kids instead of the credit card company.

Join Date: Apr 2025 · 11-22-2004, 07:59 AM

Re: Would You Use Kids' Money to Pay Debt?

I would definitely pay off my credit card bills first if I were in your situation.

**crosses** · 11-22-2004, 07:32 PM

Re: Would You Use Kids' Money to Pay Debt?

I like terry's idea. It is a win-win situation for everyone. You pay off the credit card debt and your kids end up getting more money in their savings accounts. I guess you just have to make sure you have the willpower to pay the money back and not forget about their savings accounts.

**Tree0164** · 11-23-2004, 12:12 AM

Re: Would You Use Kids' Money to Pay Debt?

Cindy,
I would put it towards the visa card as well.

**2moretrees** · 11-24-2004, 02:24 AM

Re: Would You Use Kids' Money to Pay Debt?

I think it's wonderful what you're doing. I don't think there is anything wrong with "borrowing" from them if you pay it back. Why do you feel guilty doing it?

**terry1156** · 11-24-2004, 05:02 AM

Re: Would You Use Kids' Money to Pay Debt?

Did you make a decision on what to do? I don't think you can really go wrong with whatever you choose.

**vendigirl** · 11-24-2004, 10:13 AM

Re: Would You Use Kids' Money to Pay Debt?

Seriously, I feel like I'm stealing from my kids. Wierd, I know. If they were old enough to understand and say, "Sure Mom, I'll lend you $500" that would be another thing. But they're not.
It's crazy. Like I said, most people I know just absorb that tax credit and spend it on whatever without a thought. I mean, it's my tax money being credited back, but I always wanted to just put it aside for my kids and hope that with time and compound interest it would grow to be something significant that could help them achieve their goals when they're adults. My Mom used to give me the money every month as a sort of allowance. Of course, back then I only got $18 and change. LOL.
I have decided to go ahead and use that money and put it back in January plus the interest. It will take a load off my mind to not have that Visa bill, so it will really benefit all of us in the long run.

**terry1156** · 11-25-2004, 07:42 PM

Re: Would You Use Kids' Money to Pay Debt?

I think you made a good choice. And you are right. It will benefit both you and your kids.

Isn't it strange how we get those feelings. But it is good that you have them. If you didn't, then you probably would use the money without even considering paying it back into the accounts. Your kids will be much better off because you do have that feeling.

**PrincessPerky** · 11-27-2004, 06:40 AM

Re: Would You Use Kids' Money to Pay Debt?

This thread makes me giggle (at myself), My kids don't have an enourmous amount of money but they do each get cash for every holiday from the grandparents on my husbands side, and we have no idea what to spend it on!! We are struggling ot pay for groceries while our kids have more than enough for a week of groceries in their banks! But if I opened the door to take it for milk this week it might be more next week and so on and so on. Besides we can do it, just have to stop buying pringles and chicken nuggets. Now I am making myself hungry!

**Luv2shop** · 12-13-2005, 11:08 AM

Re: Would You Use Kids' Money to Pay Debt?

Originally posted by 2moretrees

I think it's wonderful what you're doing. I don't think there is anything wrong with "borrowing" from them if you pay it back. Why do you feel guilty doing it?

I agree

**robex** · 12-13-2005, 02:28 PM

Re: Would You Use Kids' Money to Pay Debt?

I agree with paying off the Visa, and then paying back the kids. We get money every month for our three and I use it for what we need as a family. As for birthday money that they receive, that goes straight into their bank accounts and I don't touch it. My Dad puts money into a special education account for their birthday gifts, and then takes them each for a 'Birthday Sleepover'. The one on one time with him is great for them and him!

**mjrube94** · 12-13-2005, 04:48 PM

Re: Would You Use Kids' Money to Pay Debt?

What is the purpose of the money? Is it a "rebate" from the government for taxes you've paid, and you're eligible for it because you have kids? If so, I think it ultimately is your money and not theirs and you should spend it on whatever you want without a second thought.

But if this money is really THEIR money (e.g., birthday gifts), then you have a fiduciary responsibility to keep it for them and only spend it on items for them (not clothing, food, and basic necessities that you're responsible for anyway), and it should be turned over to them when they reach 18 or 21.

**cercis** · 12-13-2005, 08:06 PM

Re: Would You Use Kids' Money to Pay Debt?

We borrowed from our kids for our closing costs for our house. I didn't like doing it, but when we sold our first house, we made a large deposit into their accounts, so basically we just took back that money. Also, some of the money in their accounts came from FIL who flat out told us we were to use it for whatever we needed, even if it was to pay the utility bill or buy diapers.

Their bday money goes into their bottle and we don't touch that. We've decided, though, to open a special account with that money because we're getting close to $500 (or more, maybe) and getting a little afraid of having it stolen. The kids are okay with the idea because I explained about interest. We're still trying to figure out how we will decide they have earned their disney trip (what they were saving for) since the original goal was to fill the bottle.

**mjrube94** · 12-14-2005, 05:56 AM

Re: Would You Use Kids' Money to Pay Debt?

Cercis, if you're looking for a place to put the kids' $500, check out AffinityBank.com. It's FDIC insured, and if you open a kids account, they pay 10% interest on the first $500. They're based in California, and I'm in NJ, but I had no problem opening the account, and the few interactions I've had with them have been favorable...

Would You Use Kids' Money to Pay Debt?