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Original poster

Using DC's earned money for ourselves?

238 replies

EatonEntry · 27/05/2018 14:33

To pay off our outstanding debts?

In a nutshell, myself and DH have quite a few things on finance that we are dying to pay off so we can be much better off eacgh month. We have both vowed never to have anything on finance again (we did it in a made rush when we needed things to move with).

Our DC is a baby and a very successful model.

Would we be unreasonable to use his money that earns to pay off some stuff?

I feel sick at the thought. It feels so wrong. It's in DC's own account, and I'd be withdrawing it from there. I feel like it should be his to have put away for his first car, perhaps to help him at university if he wishes to go, perhaps to help put down the deposit on a mortgage for himself.

DH's argument is we have extortionate rent to pay, and that money could make life from month to month a lot easier if we pay off our finance plans.

I think and feel that the whole thing is wrong, but I'm open to be told DH has more sense.

Who is right?

Sad
OP posts:
KM99 · 27/05/2018 15:17

How hard is your life right now? Can you still afford the roof over your head and the food on the table? I would think long and hard about touching the money as I think as others have said it could be a slippery slope once you cross the line.

I don't mean to sound harsh at all,but maybe having to live a few more years paying off finance will really hammer home to you about making good decisions with money. That's an important life skill to pass onto your little one when they understand about any savings they have.

sprinklesandsauce · 27/05/2018 15:17

I agree that you could take money for expenses if they are high, for transport to jobs , photos, etc. Just keep a clear record. The baby would pay tax if it earned over £11850 in the current year.

Martin Lewis website says he has had mixed advice from lawyers on taking your child’s money, some say fine, some say fraud.

I would take it but ONLY if you set up a clear sustainable repayment plan. You also have to stop all unnessary spending and destroy your credit cards so you don’t build up more debt.

If you don’t replace the money then it would be theft.

A parents first duty to their child is to look after it. It would be better to spend the money than to struggle, but you need to not get into debt again.

Also, you say your rent is extortionate, can you move to reduce it?

Weezol · 27/05/2018 15:17

It's playing a dodgy game as far as tax liability is concerned.

Leave your child's earnings alone - can one of you pick up some part time work to get you over this bump? Even 8 hours a week would help. Bar work, cleaning, dog walking, Uber?

Tomorrowillbeachicken · 27/05/2018 15:18

That’s the other point.... if you were given money to chaperone, where did that go?

ThumbWitchesAbroad · 27/05/2018 15:19

Love how few posters read the updates. The OP has said she would pay it back. She has said they want to use the money to pay off finance plans, which charge a lot of interest.
If she paid those off, then they wouldn't be paying out so much in interest and would be able to pay back the money into their son's account (with calculated interest included, one would assume) so the child would never lose out, wouldn't even know about it as all the money would be returned.

But the legality of it should be checked first in case there are laws against doing it.

Mxyzptlk · 27/05/2018 15:21

Imagine that your DC has no successful career.
What would you be trying then, to reduce your debts? Have you tried all that already?

Loonoon · 27/05/2018 15:21

I think it would be fine if you paid it back at a slightly higher interest rate than his BS account is paying - that would benefit you and him. Assuming of course it is legal.

1forAll74 · 27/05/2018 15:21

I don't think that I could do this, even though your child is still a baby, and unknowing about all things money wise. But I have never had anything on finance,or been in debt, but it must be a constant worry all the time, and can see it would be tempting to borrow money in this way.

I don't know anything about the legality issues at all, although one of my grandsons has done a bit of modelling here and there, but nothing big, just a now and then shoot at times. Hopefully as you say, the money can be paid back at some point in time, and you can get a clear mind about this issue then.

Mxyzptlk · 27/05/2018 15:22

ThunmWitches, all of that is fine if the OP and DH are good with money but it sounds as if they aren't.

Shambu · 27/05/2018 15:22

Who organised the baby to join an agency? Who takes it to jobs?

Without OP there would be no 'career'. It's as much OP's work as as the baby's at this point.

As long as there aren't any specific rules against it, and as long as OP pays it back, it's fine.

Onlyoldontheoutside · 27/05/2018 15:22

I would use it if you are struggling to service the interest then pay pay of debts and set up a standing order.It makes no sense to be struggling and maybe restricting the life you give your child for the next 18 just so they have money then.

BritInUS1 · 27/05/2018 15:22

If he is very successful, make sure you are paying any tax that would be due on his money

kabanner · 27/05/2018 15:24

When I got my savings account book at 18 my mum explained that there were a number of withdrawals through out the 80s and 90s when they needed the money.

Dad's business went bankrupt, interest only mortgage and rates were heading towards 20%.
I remember those times lots of stress, we didn't have holidays or a car. It was used for essentials.

If you are paying high interest on a debt then makes sense to reduce it. Plan to pay the money back.
As long as you think it is the best for the family and can explain when they turn 18 the reasons.

Original poster
EatonEntry · 27/05/2018 15:25

How much would you need to borrow off him?
How much would that free up a mouth? How much could you afford to pay back a month?

I think that would be the main issue

We would need to borrow about £800 for everything to be cleared. That would then free up over £250 a month for us as a family

We could afford to pay £20/£30 a month back into a secure, untouchable savings account for him. Plus all the next lot of money he will be earning from more jobs he has lined up

OP posts:
MinorRSole · 27/05/2018 15:29

£800 frees up £250 a month? So you are a little over 3 months from being clear of it anyway? What's the point?

CatherineCawood · 27/05/2018 15:31

The legal aspect of it is that any earnings have to be paid into the child's account or the cheque has to be made out to the child.

What you do with it when it is in their account is entirely up to you.

I know people that have saved it all for the dc and people that have used it to live off or pay for family holidays etc.

ScrubTheDecks · 27/05/2018 15:31

I must be truly evil as I would view baby modelling money as being tne parents’.

You made him, you do all the work in booking gigs and your time chaperoning him, he just does what he would normally do in his life: look cute!

Later if they are child actors, it is what they do that earns the ££ so I would definitely see it as theirs.

But... your baby, your money!

Oh dear, I will have to name change and leave the country now Blush

BlueTrousers · 27/05/2018 15:33

This thread has just reminded me that I haven’t paid back DDs birthday money that I borrowed last month when I had no cash in for a takeaway - thanks Grin

LaurieMarlow · 27/05/2018 15:34

I wouldn't. It's almost too easy an answer for you.

You're spending beyond your means and you need to rethink your finances. You need to get a handle on that rather than a quick fix solution. Even if you paid everything back with interest, I'd be afraid you'd do the same thing again in the future.

If I were you, I'd make dipping into DC's money a red line and never go there.

Slartybartfast · 27/05/2018 15:34

It's wrong, if you had been saving for them and borrowed it, that would not be so bad

Original poster
EatonEntry · 27/05/2018 15:36

I don't get any chaperoning fees, and generally, transport costs aren't paid for by anyone who books him unless it's television work. Modelling in the sense of still shoots (for online websites, catalogues, billboards etc), is just paid at his basic rate.

Sorry, I did get the figures wrong there.

The money we would need to pay off the debt would be around £800 and would leave us far better of a month (interest rates and arrears are worth mentioning here but I won't go into them).

So essentially, if we did borrow the £800, we would pay £20/30 a month back but not into the account he has now. An account that can't be touched until he reaches 18 or preferably older when I can be more comfortable that he would spend it wisely

OP posts:
Tomorrowillbeachicken · 27/05/2018 15:37

The problem is that the clients are the paying the child to use the child’s image to make them money.

MaybeBabey · 27/05/2018 15:38

Idk anything about the legal situation in the UK. And I've only skim read the thread.

But morally?

I think it depends on your situation.

You say that it would free up 250.- a month. Is this money you'd spend on food, amenities, child care, things that would directly benefit him?

It's fine imo.

Is this about being.. comfortable? A new hobby? TV?

Not so fine imo. But probably still preferable to paying unnecessary intrest (that would be the scenario where you're not genuinely struggling to make ends meet, btw).

But you need to be 100% sure that you are going to pay it back.

Taking a part of the money he earned for things like travel expenses caused by this modeling is fine imo, btw.

Please be aware that you can never count on this money / that you can't regard it as regular income.

This is more like... His grandparents giving him Christmas / birthday money (for a trustfund / to invest in his future) imo.

CoolCarrie · 27/05/2018 15:39

I know someone who lives off her children’s earning s from modelling. Their father acts as chaperone to his children, and gets paid accordingly and all 9 in the family live of the earnings.

sweeneytoddsrazor · 27/05/2018 15:41

You need £800 to clear everything, which frees up £250 a month but you can then only afford £20/£30 a month to pay dc back?

Personally I wouldn't be doing it, but I would expect you to be paying at least £100 - £150 a month back out of that £250 you are freeing up.

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