Using DC's earned money for ourselves?

[EatonEntry]

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?

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

If you're going to free up over £250 a month by borrowing £800, you can afford to pay back just over £250 a month for three months to clear it.

your figures make no sense at all so you are either making them up or still do not have a grasp of your finances which makes it even less likely you’ll pay back what you borrow

Indeed - and I also agree totally with your earlier post

My personal opinion is it isn't ideal but it's not inheritance or a gift, so use the minimum you need to cover the finance, and make sure you pay it back. If it will genuinely help day to day living in your household, which he will benefit from. That's with the assumption it would be paid back in full and not touched again now you're straight financially. I would also consider the modelling to be 'over' in the sense it's not a guaranteed income for either you or for his savings.

If you can afford to repay him by monthly standing order, then pay your debts by SO instead. You will just get back into debt otherwise.

Paying it back over 3/4 maths is very different than paying it bk over 40

Months

I agree it’s acceptable to borrow but paying it back should be of equal priority as the loans would have been.

E.g if they cost you £250 a month, you should repay at £250 per month until the debt is repaid.

It would be reasonable to deduct a fee for the time it takes you to look after him etc if this is time in which you could otherwise take paid work.

You really need to make sure you have a decent grasp on your finances though - the numbers you are giving don’t make much sense really.

All the pp saying about using it for emergencies - this isn't an emergency, and there appears to be no desire to pay it back very promptly, and if £800 really clears £250 a month there can't very long left to pay on any finances anyway.

I don't u understand your figures. Paying the finance off (£800?) Will free up over £250 per month . So your payments are around £250 per month. Which, in my mind, means your £800 finance will be paid off in just over 3 months?

If £800 is a typo and should read £8000 then yes I might think about it but I would set up a SO for at least £100 per month. £20 to £30 is pitiful given that you'll be over 250 a month better off.

OP to clarify

You pay 250

Given interest you have 4 payments left but would be less and easier to pay it now?

You can afford it but its tight
If so, why pay only 20 back a month? I'd set the goal of paying it all back within a year so £70. You're still a lot better off.

If you can afford the 70, after the money is repaid save that 70 a month for contingencies

Can you not get a 0% interest free credit card OP?

There are loads of offers around at the moment which have no transfer fee and 0% for about 2 years.

But if not, of course it's not wrong to borrow from your baby's account and then pay it back later. As if he'll give a shit, or it will harm him in any way. Whereas financially stressed parents are not in his interests.

The figures aren't making sense to me either. Your payback rate is very small...but you'll have paid it back within 2.5 years.

Please don't do it. This happened in my immediate and also extended family and has caused immense issues including NC in some instances- child now adult instigated the NC.

If your child was an adult would you just take the money? The temptation is there because the child is a baby and cant give consent - think about this -you are taking advantage of the baby because of bad decisions you have made. You have to suck it up and be responsible for your own financial decisions.

Can you Earn more of your own money instead of taking from something be who cant give consent?

Given how nonsensical the figures you're quoting are I'd dispute that you're "good with money". And surely using money earned by a minor child yourself is tax evasion?

'I do all the work to get him the work. Sign his documents, organise his license, take him to and from shoots, sit around at castings. Keep him happy etc'
Well he's a baby and you're the one who signs him up to do these things...you can't make out like he's a 20 year old taking you for granted.
It's your own fault for getting into this mess but it's up to you if you want to use his money. However, don't try and justify it by saying you do so much work for him when you're the one who chooses to sign him up for jobs

Borrow the money but pay it back at the same amount it frees up. It would only be for 3.3 months ish and then you'd be in a much better place than the 6mo+ on the finance deals. Without the guilt of owing your child money. I'd also move the rest of their earnings into the protected child account you mention.

You could also then keep each modelling job money in the normal account then move it into the protected account after each new job. Iyswim leaving you with an emergency back up without the temptation of the whole amount.

But if this leaves you 250+ a month better of you'd have the ability to build up your own emergency pot.

Dp and I put £125 a month into ours with the plan to build it up to £4500 over 3years (3 months basic cost of living) incase of job loss, limited work. But also for such things as the car blowing up or big unexpected bill. Then top it back up again at the same rate.without putting your basic finances at risk. Already saved our bacon this year. We started it after I had a motorbike crash last year and was off work for 2 months on half pay. Just after Xmas and moving into a new unfurnished flat. Really hit home how close to the line we actually were.

Just try to keep insight your original view that its your child's money for the future.

There are loads of offers around at the moment which have no transfer fee and 0% for about 2 years

If the op is overstretched then they won't get a 0%deal.

If you’re making £250 a month repayments on a debt of only £800 you’ve virtually paid it off now anyway, surely? Only a few months more of belt-tightening and it’s all done.

And yes, if borrowing your baby’s money will free up £250 a month, clearly it’s a nonsense to say you could only afford to repay it at £20-£30 a month.

I'd definitely borrow it. It's not like he put in the hard work to get spotted, go to castings, has to work hard on shoots etc and like you say he won't miss it until he's much older. Do make sure you pay it back, although I think taking a cut to cover expenses both for you and him would also be reasonable.

if borrowing your baby’s money will free up £250 a month, clearly it’s a nonsense to say you could only afford to repay it at £20-£30 a month.

I assume paying it back at this rate means they can enjoy a slightly better quality of life and not be scrimping and saving and potentially getting into further debt?

Interest rates are pretty low at the moment so I really don't see the harm paying back over a few years myself.

£20 to £30 is pitiful given that you'll be over 250 a month better off

But the money would be paid back in under 3 years. I doubt a 4 year old will be hankering after the money.

Maybe £250 per month is overstretching the op so a lesser amount would help and take the pressure off

As you are chaperoning your child to the point of work, you're not available to earn any money for yourself at this time.. You are also paying for the transport, you might be paying for outfits, clothes, haircuts, etc.

I would go back through the work he has been doing since the start and make a note of the job, how much he earned, how much it cost you in transport, clothing etc, and how long it took you to take him from your home to the location.

You could then allow expenses payable back to you for all the above from his earnings, plus an allowance for your time at, say, whatever your rate of pay per hour was before you gave up work to have him.

This, IMO, would be perfectly reasonable, as during the time you are tied up taking him to shoots etc you cannot earn a penny in your own right, and it is only fair you should be reimbursed for your time and any costs.

However, when the child grows up they have grounds to bring civil action due to your breach of fiduciary responsibility over their account. It's their money, you're meant to be guarding it and not spending it

What if it is spent on the dc for ECA's. I know a lot of people use their childs earnings for dance/singing lessons

.

The people calling the op pathertic are being a bit low. She intends to pay it back. Am sure the money will also go towards raising her baby.
Presumably she took him to modelling jobs at a cost to her -transport, time off etc.

I don’t know if it’s legal. Look into are there tax implications. Children get tax free interest. Presumably if everyone could just take their money as an when they pleased everyone would save in their child’s name.

@Oliversmumsarmy

I don't know. I quoted it from a lawyer. I'm sure the parents could defend themselves for using the money to give the kids new experiences etc. But not if they spent it on themselves.