Would You Use Kids' Money to Pay Debt?

[cicy33]

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

.

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.

Make a mark on the side of the bottle before you take the money out. Then when you are ready to take the money out again. measure the mark you made and then measure that distance from the top of the current moneys and make another mark. Eventually they will "fill" the bottle. You are smart to get it out of the house and into a bank or something that draws interest plus the away from the danger of theft.

[cicy33]

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

We get a government credit of a little over $100 per child monthly. I have been putting that money directly into an ING account for each child. I plan to eventually buy each of them a Mutual Fund or other long term investment with it. However, if I "borrow" some of the kids' money I can pay off the Visa bill by the end of December. It makes sense, but I feel guilty. I'm not sure why since most folks just assimilate the child tax credit into their regular income and spend it. WWYD?

Actually I agree with another poster. This money you are talking about is yours. You are a good person to give it to your children but this money is a tax break to help offset the cost of having children when your income is low. It is actually not the childrens. But I do think that is awesome that you are doing this for them. You should feel no guilt. The reason a lot of people wait until the end of the year (myself anyway) it is sorta like a savings account. I would spend it if it was in my paycheck. Also it helps to lower taxable income.

[shelbylovesmelby]

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

now that min pmts are douibling in january i'd work on the credit card also. or you could maybe put a portion of the $ away for the kids & the rest tward the card?

[Firefly]

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

I agree with borrowing it and putting it towards the Visa. I think it is great that you are doing that for your kids!!

[Bluezy]

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

If the debt incurred on the Visa was for child expenses or a mandatory survival means, I would borrow the amount of money from your tax credit, pay off the debt, then replace the money with interest to each child's account. If the Visa debt is from frivolous spending, you need to leave the children's money alone and tough it out.

It's very expensive to raise children. However, your children need to be paid back in good faith.

[TBH]

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

The money is technically yours, because it's a tax credit from your earnings. But I do this all the time too: divide my money into little pots (usualy separate accounts) and make rules for myself about what each pot can be used for.

Example: My emergency fund can be used for money-saving improvements to house, major repairs, vacations that have been planned at beginning of year, and large money gifts to friends in need (amount available for money gifts also decided at beginning of year). Cannot be used for general living expenses or frivolous cosmetic house repairs.

So I think this is your money and you should use it, but stick to the rule that you set for yourself (that it's for the kids' futures) by paying it back.

You sound like you're doing great! I like how you've got your goals in your signature. Keep it up.