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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Borrowing child’s savings...

470 replies

Quckname · 12/09/2021 12:02

Do you think the following is acceptable?

Parent has some expensive debt on credit cards. The interest free period is expiring and the parent is not able to get a loan or balance transfer to a lower rate.

Child has an instant access savings account with some money in.

Is it ok for the parent to borrow funds from the child to repay the expensive debt, as long as they ensure that the savings are repaid (with interest) before the child would have used the account?

So as not to drip feed:

  • money in the savings account was paid in by the same parent (not friends & family)
  • money would be repaid along with the compound interest that it would have accrued in savings
  • repaying to the child’s savings would take approx 3 - 4 years, compared to it taking 20 years plus to repay on the credit cards with high interest
  • child is still young so not due to receive the savings for a long time
  • the child has not been asked for their opinion because they are too young (and too generous) to make an informed decision
  • parent has explored and exhausted all other options to reduce the cost of borrowing
  • if paid off, the credit accounts will be shut down so that it is not possible to accrue large debt again

What do you think?

YABU - borrowing the money is the same as stealing, the parent shouldn’t touch the child’s savings and should repay their debt over the longer period of time at the high interest rate.

YANBU - the money will be repaid to the child’s savings, and the child will benefit from having a parent that is not stuck in long term expensive debt

OP posts:
BunnytheFriendlyDragon · 14/09/2021 21:51

If the parents financial situation is that bad, I’m not sure that it’s possible to say it’ll definitely be paid back. I appreciate parent is intending to pay it back, but that doesn’t match any of the financial information given in the post…

This but I also think since you paid it in then you can withdraw it. I don't believe itwill be paid back.

OnTheBoardwalk · 14/09/2021 21:59

Do it. As others have said it’s not money that has been sent from family and friends

Pay the debt, cut the cards up and set a SO for the card payments to start the savings again

Paying any interest, let alone credit card interest, Is just ridiculous

OddSockBandit · 15/09/2021 02:33

Wow. This thread is awful.

PrincessNutella · 15/09/2021 04:36

This is a crappy reason to steal from a child.

PileOfBooks · 15/09/2021 08:04

PrincessNutella have you read the thread? Its the parent's money!

RazorSharp · 15/09/2021 08:33

@PrincessNutella

This is a crappy reason to steal from a child.
Good job they're not then! 🙄
Lime37 · 15/09/2021 08:43

How did the young child earn the money?? Are they a child model / actor or chimney sweep??? Surely it was your money first. By paying him off debt it means you will have more money to do nice things with your children in the future.

Medievalist · 15/09/2021 10:20

@PrincessNutella

Let me simplify it for you -

OP put some of her own money into a savings account for her young child.

OP now needs to borrow some money and can either take out a commercial loan at a high rate of interest or borrow back the money that was originally hers and replace it over a period of time, together with some interest. OP is better off and dc is better off.

moynomore · 15/09/2021 10:21

@OddSockBandit

Wow. This thread is awful.
In what way is it awful?
RonaldMcDonald · 15/09/2021 10:24

Use the money, it makes fiscal sense

Medievalist · 15/09/2021 10:27

In what way is it awful?

@moynomore - for starters because people are accusing the op of stealing and financial ineptitude

moynomore · 15/09/2021 10:30

@Medievalist then I agree. Some on here are being ridiculous.

Lavender24 · 15/09/2021 10:32

It's not ideal but I think if you're really desperate and will definitely pay it back then it's OK. My Mum borrowed from me and my brother very occasionally when we were kids and she always paid us back.

ManifestDestinee · 15/09/2021 10:37

@PrincessNutella

This is a crappy reason to steal from a child.
IT's not stealing from a child though, so no issue.
MurielSpriggs · 15/09/2021 10:58

@Medievalist

In what way is it awful?

@moynomore - for starters because people are accusing the op of stealing and financial ineptitude

At least one of those is clearly true!
MurielSpriggs · 15/09/2021 11:00

[quote Medievalist]@PrincessNutella

Let me simplify it for you -

OP put some of her own money into a savings account for her young child.

OP now needs to borrow some money and can either take out a commercial loan at a high rate of interest or borrow back the money that was originally hers and replace it over a period of time, together with some interest. OP is better off and dc is better off. [/quote]
This would be an absolute "no-brainer" if those were the only two choices!

me109f · 16/09/2021 01:44

Borrow it of course if it saves interest payments. Explain to your child, of course, and be sure to repay it as soon as possible. Write an IOU and put it safe in your own records.
However, this ahould not become a regular thing, and if your child is older, say 18, if they refuse then you should accept that and make other arrangements.

Blondeshavemorefun · 16/09/2021 14:17

It’s your money you’ve saved for your dc

There is no point in paying high interest when can pay debt off

Tho I would say you have to pay £100 or what ever figures back monthly

If debt will be gone in 4yrs makes sense

No point saving money for the future if struggling now in the present

Bowtie292 · 16/09/2021 14:25

My parents emptied mine and my brothers savings accounts when we were aged 10 and 13 in order to clear the mortgage. They then went on to save enough to give us both driving lessons, 1st cars, uni fees (which weren't much back then) and house deposits.

It makes sense to me.

Bowtie292 · 16/09/2021 14:26

And it's obviously not stealing. It's your money!

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