Charging kids interest

[ToraMama]

Parent A has leant 11 year old DD a fiver to go to a bake sale at school. Parent A wants a cake in return and the money laid back. They think this is an important life lesson in managing money. Considering that child receives an allowance of £5 a week.

Parent B is against this and thinks it’s just a cost that comes with a part of being a parent and they should just be given the fiver and that’s it.

whos being unreasonable?

What are we voting for?

Parent b is wrong

That’s loan shark level interest though! Insisting it is paid back is life lesson enough for a kid!

You cannot be serious?!

Parent A is insanely unreasonable.

Maybe nobody is being unreasonable. One parent takes an opportunity to teach their child to manage money. Another parent is happy to give their child a fiver for cake , and isn’t thinking about money management.

Normal people would give the fiver and ask for the change, who expects their child to finance a bake sale themselves?

If a cake is a fiver the school is being unreasonable

Parent A is insane.

Fucked up, just give the kid money for cake.

I don't think an 11yo child should be made to pay for a bake sale out of their pocket money!

Fair enough to ask for a cake, but no not the whole fiver back plus a cake! That's a minimum of 20% interest in a day!

The life lesson is that parents a is a knob

They want a cake and £5 paid back?

So kids paying for a cake for the parent?

Well just no. Give dc £1 and tell them crack on

That is absolutely madness "lending" your child a fiver for a school bake sale. It's not teaching them anything aside from their parent is tight

If you are trying to teach the child that you don't help family unless there is something in it for you then Parent A is right.

If you are teaching them to be responsible you would have them pay it back by a certain time and only then if it is not paid pack on time interest is charged.

Occasional gifts of money that you don't pay back is fine but it should be infrequent so that it doesn't become expected.

Parent A is being a knob.

I give DS enough cash for the bake sale so he can buy something for all of us. He gets to choose, and I benefit!

Why was it a loan in the first place? I give my 11 year old £5 a week to spend at the tuck shop at break time/at cake sales etc. She’s a child, it’s my parental duty to provide for her:

Parent A is been ridiculous

I’d think parent A is tight as a ducks arse, should realise not everything in life needs to be turned into a lesson and treat their child like a child and just give them money for some fucking cake.

I disagree with posters above. Cake sale money should come from pocket money. If a child doesn’t want to waste their money on it fair enough. If they spend every penny of their pocket money the moment they get it, it’s an important life lesson that either you put money aside or if you have to borrow money it comes at a cost.

Completely different point, how much is the going rate for cake at a school bake sale going for these days?! Surely there should be no more than £2?

Cake sales are usually for charity. I give mine money for them to support the charity.

So, you wouldn’t buy your 11 year old child a cake? Jesus.

I wouldn’t charge interest.

Whether I’d ask for the fiver back would depend on the pocket money situation. If they get a reasonable amount, spend it all, come to me for more money for a school thing, then it would be an advance on their next pocket money, so I’d effectively get it back that way.

I’m assuming the kid has pocket money exactly for this sort of stuff (ie a treat, the fact it’s bought from a bake sale rather than a shop shouldn’t make a difference). They’ve run out of money, so need a loan. I have no issue with that coming at a cost, I agree that’s a good lesson

However a cake is way too much interest. If you’re teaching a lesson, make it more realistic, with a more reasonable interest.

Your husband Parent A is a real ass.

Having had a quick look, £100 for a week would cost you £1-£5, so in your case, interest would be 5p-25p. Depends how much they’re charging for their cakes!

Why does it need to be a loan of a fiver to the child?

I’d probably say the lesson to be taught is that it’s good to be donating money to charity, not that if your borrow money you will have to pay interest on the loan.