Kiddiwinkles Savings should i use them??

moggylover

sarahs999 wrote: »

this thread's got quite heated, but i just wanted to address something the op said in her first post about using money at the beginning of the month to pay debts, and then being short at the end. There's a very simple solution - you pay your debts off at the end of the month, the day before payday, when you can see how much excess you have. That way you won't need to use the kids' savings.

It's very obvious but it took me a while to work it out, and i'm so glad i did. I used to have the same problem you're having.

If you're worried that you don't have enough willpower, and will just spend all the money you have, take out the amount that you would like to pay off your debts at the beginning of the month (i'm assuming that you are tlking about overpayments, rather than minimum payments). Put them in a separate holding account (any savings account will do). Then if you run into trouble in the month - unexpected repairs etc - you have the money to dip in to. At the end pay off the whole lot that is left from your debt. Then start again with the next paypacket.

The thing is, even if you use the kids' savings, what's going to be there for you next time you hit a problem? If you tackle the way you are approaching your debt your problem is solved.

Excellent post!

richardvc

For what it's worth my opinion is - use their money and get the debt paid off as soon as BUT you MUST address the reason you got into debt in the first place and set a rigorous time scale for paying it back.

If you fail to pay it back in that time then shame on you BUT be realistic and honest with yourselves.

If you deal with your debt, make sure you understand your debts and become financially aware and pay the kids back then I don't think there is a problem.

WendysWorld

Wow OP, you've really hit a nerve here! A lot of hyperbole and overblown statements here, embezzlement? For God's Sake....
We have 2 boys, 6&3, we use the Child Trust fund for birthday/christmas present money and we've set up a savings accounts each to put in a monthly amount for them.. In addition, we have stockholder pensions for them. Now I consider the CTF money and pension as theirs, and anyhow I can't legally touch it. BUT I consider the savings account My savings for Their Future. So I'm retaining control of it frankly. If my sons go to University, I'll use it to pay for college fees or maybe as a deposit for a house if not. There's no way I'm handing thousands of pounds over to an 18 year old. I know what I was like when I went off to University and I would have p**d away a couple of grand easily enough! But I didn't get into any debt and learned to pay my way by taking jobs etc. I was lucky to have a council grant that paid fees, (I went to university in Ireland) but everything else I paid for myself.

We stopped the monthly amount temporarily last year when OH lost his job. He was out of work for 5 months so it was a bit of a struggle and all our savings disappeared. Luckily we didn't need to spend our boys savings but I would have had no hesitation in doing so - I still consider it our money, I'm just putting it aside for their benefit! I would suggest doing a rough calculation of all the gifted money and put that into their Child Trust fund. Then use the remainder to pay off debts, and stop saving for them until you can actually afford it.
All the bleeding heart stuff is ridiculous, looking into their teary eyes because they want an XBox??? Are you mad?
We, and our children today are very lucky we're even arguing about this, my own father had to go out and work when he was 12 and so couldn't finish school. Every penny was handed over to his mother and with her having a large family, that was the way it was then. Can't imagine what my granny would have said about this argument....

Tixy

vgstar - I probably wouldn't use the savings the kids have currently. But I would definitely suggest you stop the £10 standing order for the time being. Every little helps when you are budgeting.
But I think that perhaps you are not budgeting. I would sit down with OH and write out a joint family budget (or statement of affairs) to see how you can best cope with the repayment of your debt. It may be that you can reduce costs on some of the household expenses so that OH can help contribute towards your debts.

If you are getting to the point of your house being repossesed/having nowhere to live then I guess at that point you could consider using their savings. But if its only a case of not being able to meet your unsecured debt repayments then I would look at other options first.

andys15

BabyMother wrote: »

Wow OP, you've really hit a nerve here! A lot of hyperbole and overblown statements here, embezzlement? For God's Sake....
We have 2 boys, 6&3, we use the Child Trust fund for birthday/christmas present money and we've set up a savings accounts each to put in a monthly amount for them.. In addition, we have stockholder pensions for them. Now I consider the CTF money and pension as theirs, and anyhow I can't legally touch it. BUT I consider the savings account My savings for Their Future. So I'm retaining control of it frankly. If my sons go to University, I'll use it to pay for college fees or maybe as a deposit for a house if not. There's no way I'm handing thousands of pounds over to an 18 year old. I know what I was like when I went off to University and I would have p**d away a couple of grand easily enough! But I didn't get into any debt and learned to pay my way by taking jobs etc. I was lucky to have a council grant that paid fees, (I went to university in Ireland) but everything else I paid for myself.

We stopped the monthly amount temporarily last year when OH lost his job. He was out of work for 5 months so it was a bit of a struggle and all our savings disappeared. Luckily we didn't need to spend our boys savings but I would have had no hesitation in doing so - I still consider it our money, I'm just putting it aside for their benefit! I would suggest doing a rough calculation of all the gifted money and put that into their Child Trust fund. Then use the remainder to pay off debts, and stop saving for them until you can actually afford it.
All the bleeding heart stuff is ridiculous, looking into their teary eyes because they want an XBox??? Are you mad?
We, and our children today are very lucky we're even arguing about this, my own father had to go out and work when he was 12 and so couldn't finish school. Every penny was handed over to his mother and with her having a large family, that was the way it was then. Can't imagine what my granny would have said about this argument....

You have hit the nail on the head. Expressed in a way that I couldn't.

paybacktime2008

I've just 'robbed' my son of 2k. He's savvy though I will be paying it back at 5% interest. He wins (better rate than the building society) I win (less interest than the overdraft) and a valuable lesson learnt for all of us.

zarazara

As I see it it is your money which you have set aside for things for the children,either soon eg a birthday gift,or later eg an 18th present. It is still your money,therefore I would definatey use it to pay down the debt.

wuckfit

zarazara wrote: »

As I see it it is your money which you have set aside for things for the children,either soon eg a birthday gift,or later eg an 18th present. It is still your money,therefore I would definatey use it to pay down the debt.

That depends. If it's in an account in the child's name, it is the child's money; and therefore taking it without consent is no different to taking money from any other account that does not belong to you, ergo, theft.

foxymum1977_2

i know if if it was us in your situation we would probably not have the money to pay back that sort of money to our children so wouldnt borrow it in the first place, but you do what you think you should, good luck x

kate_pixie

Maybe to avoid this kind of moral grey area in future, the OP should have two accounts. One in the child's name for gifts of money and saving pocket money which they cannot touch, and a second account in his/her name in which they pay money they want to set aside for their children's future, which at all times remains theirs to do with as they wish.

Simples! xx