Borrowing Kids Savings

[Santa70]

Am I being unreasonable to borrow the kids savings to repay my overdraft. About £2300. Not sure how long it will take me to repay - maybe 6 months, maybe more? I feel bad, but clearing the debt would be a weight off my mind?!?

Yanbu

depends where the money came from

if you put it in the account then borrow it back out again

if it's presents from family then leave it where it is

Where did kid's savings come from?

YANBU. I had to do this a few years back. I felt awful but not as awful as if we had been made homeless :(

Its basically Xmas & Birthday gifts from family since they were born. There has never been a withdrawel from the account.

Its basically Xmas & Birthday gifts from family since they were born. There has never been a withdrawel from the account.

YANBU. We had to do it. We will repay it.

Do it, you will be saving £££££££££ on charges. Set up a standing order into each account to repay it - even if it takes years.

I wouldn't if it was gifts to them. Six months isn't that long really.

unless OP isn't good at managing money & will just run up overdraft all over again.

OP isnt great with money.........

You can't, not if it is money from other people.

If it will take you 6 months to repay the savings, then that is how long it will take you to pay off your overdraft.

we have done the same and then will be paying it back gradually, it is money in savings for when they turn 18, we needed it pay of debt and so used it, knowing we can gradually pay it back before they turn 18.

if it is affecting the finances of the whole family i think its reasonble to do this provinding you sort out paying it back :)

How much is the overdraft costing you per month?

I'm a bit odd as I've taken the dcs and put them against our mortgage as an overpayment but it's still their money and I will pay them interest. Mortgage is 2.5% their saving 0.75%... would rather pay them 1-2% myself!

Who could OP get in touch with to help her become wiser & clever with her money?

If you are not good with money, please don't raid their accounts. The chances are you will not manage to pay them back properly, and it is their money, so you would effectively be stealing from them.

Actually CAP do debt management and courses in managing personal finances.

Loads of help on moneysavingexpert.com too.

We did this once. We borrowed £1000 from each of our eldest 3 DC. They were very young and I signed on all 3 accounts We did pay it all back within 18 months and later when they were older I put an extra lump sum in to make up for any interest. I don't think it matters where the money comes from originally. The money was given by GP mainly to spend as we saw fit for the DC. We chose to put it in a savings account but we could have bought clothes/shoes or spent it on days out etc.

If you can pay back £2300 in six months it means you have approximately £400/month 'spare' in your budget. It would probably be cheaper to convert your overdraft into a short-term loan and use your £400/month pay it off that way.

Thanks everyone. I have decided to do it, and repay it by standing order as someone suggested :-)

I think if you do this the account will no longer be considered completely tax free as gifts from people other than their parents, and it becomes a taxable account (which is fair enough as you are treating it effectively as your own money).

Santa70

If you are going to repay the overdraft using your childrens money it might be in your best interests to reduce your overdraft facility with the bank. Then maybe post a Statement of Affairs on the money saving expert website and they will help you with your budget.

Good luck