Children's savings

mrsspendalot

If your kids had savings in their accounts would you use it to pay off a debt and then pay it back to them when you are debt free?

My kids have between them about £250 in their savings accounts which is enough to clear one of my debts outright. The interest I am paying on the debt is about 29% and I probably only get about 4% interest on their savings. If it was my own savings I wouldn't even hesitate to use it to pay debt, but as it is my kids savings I am not sure whether it feels morally right or not

ancasta_2

If it was me ... It depends how old my children are, if they are very young and arent likely to need it for a few year, then probably... BUT it would also depend on how big my debt was. If it was a very small debt i would use it and repay it... but if it was just a drop in the ocean... then no, i wouldnt take from peter to pay paul.

HTH

livinginhope

There was a thread like this a while ago,certainly got a few feathers ruffled :rolleyes: I have already used all of my children's savings,they had about £2k,none of which was saved by us,but by other family members,all of whom told us to use them.
While I know that a lot of people feel it morally wrong,if your home is at risk and you can't put food on the table,I don't think there should be a problem with it,I think you have to do what you feel is right for you and your family.
LIH

deb_buffy

My parents did this with mine and my sisters savings and then set up a standing order for £50 a month untill it was paid off. We were only 6 at the time so it wasnt money we were going to use any time soon. I would personally use the savings and then pay it back when you can.

Beth86

I have got to be honest I am guilty of this.:o

While I feel guilty about every single penny, I have used bubs savings to scrape by when the budgets been really tight.

And now I know it's not much but I've set up a temporary standing order to his account for 50p a week. It's affordable for the moment and helps me pay back the money I have borrowed.

I have decided that when I am debt free I am donating £100 per month for a year to charity.
And another £100 a month for a year into Garreth's account.

I pay more than that off on my debt each month.

mrsspendalot

My credit card debts are all little bits ... I have £68 on one, £201 on another, £278 on another, £110 on another, etc so £250 would clear one completely. So it would get rid of one complete debt (or 2 if I used it to pay the £110 and £68 debts) and then I could close the accounts down and forget all about them.

My kids are 7, 3 and 1 (next week) so there is plenty of time to make the money back up and the 2 youngest have the child trust fund as well. I just can't decide. It isn't money that we have saved for them, it is money that has been given to them by relatives, which is why I just aren't sure what to do

Uniscots97

Like the others have said I remember a similar thread a while ago. I think the OP did eventually do it and has now paid her children back. They are young, so its not as if they are relying on the money to be there shortly. By using the money you could pay off the debt with the highest interest, removing some of the burden from your shoulders. Then snowball the money you do have into paying off the rest. I would say you're likely to be a lot happier with less debt and they will pick up on your mood. As for paying it back, do as someone else suggested. Small amounts put aside and before you know it the money will be paid back.

ancasta_2

I would clear the 2 accounts and throw the rest of the money at the higher one TBH.

Dont be too hard on yourself.... think of it this way.. in a harsh way

Would you rather spend their money now, but manage to keep them in clean clothes and nappies with food in their bellies... or save the money, fail to make ends meet and have your children suffer?

I know its an extreme example but as long as you pay it back, i cant see the harm.

Bambywamby

Personally I wouldn't. But thats because my son is now 15 and will be getting his savings shortly.

If you can be 100% sure you that you can pay the money back into their accounts in the near future, I don't see a problem (loaning it).

X X

maralum

Personally, I don't think I'm good enough with money to do it. I couldn't be certain that something else wouldn't come along and scupper my plans of repaying the money.

I know I can't be trusted with finances and I wouldn't want to let my babies down. If you can be certain, absolutely certain of repaying it, with interest, I don't see the problem. Especially if it improves the present situation for your children. Let's be honest, they may not be old enough to know what debts are, but they know when mummy and daddy are stressed and unhappy.

If you think it will improve their quality of life and can be sure that you'll repay it, then do it.;)

Sus1e

I think that as long as you pay it back as soon as you are able (with a bit extra for interest) I don't think that there is anything wrong with that