A woman found herself in a complicated situation. The woman was unsure if borrowing money from her children’s savings was okay so she asked other parents. This sparked a lively debate.
Borrowing money is a very common practice among parents, and it’s not a cause for concern. According to an article in Time magazine, frequenting kids for their savings may breed distrust. It’s almost similar to robbing them of their know-how of money management.
Shockingly enough, nearly one in three parents have admitted to “borrowing” money from their children’s savings. Another survey reported that around half of parents occasionally raid their children’s bank account and are never guilty for having done it. Worse, half of these parents never paid their children back.
Borrowing money out of a child’s piggy bank savings. Photo by Amomama. Is it okay to borrow money from your child’s savings?
IS IT OKAY TO TAKE MONEY FROM YOUR KID’S SAVINGS?
A person wrote on Mumsnet asking if it was okay to borrow money from their kid’s instant savings account and even promised a repayment. A user named Ronnie Pickering then replied and reassured them that they don’t agree with the practice, but “if you can guarantee it’s paid back, I suppose needs must.”While another user said:
“The money has been paid in by the parent, so I see no issue with it as long as the parent pays it back. However, I would be concerned as to why there was so much debt built up in the first place and has the issue of spending so much beyond their means been dealt with.”
An argument in favor of borrowing finances from your kids is that it can be considered your money. You’re their legal guardian, and you’re also responsible for everything they own. You can take it or ask permission from your child before you dip into their savings.
When a person holds a wad, a parent was faced with a similar dilemma as he considered using his children’s savings to buy a home.
ALWAYS ASK PERMISSION BEFORE YOU BORROW
One parent faced a similar dilemma when considering using some of his children’s savings towards a new home. His wife disagreed with him and stated that they would never owe their children. On The Guardian, he posted a question asking for advice from other parents in similar situations. One person named Jill le Neve Johnson replied:
“I couldn’t believe this question when I read it! Child benefit is given to help with the expense of bringing up children. I, like millions of others (and my mother with me), spend it on their children,”
Asking permission before you borrow money from your kids is advisable because it portrays you as honest. It’s fine to ask your child questions as long as they are old enough to understand the situation. If your child is not old enough to understand what you are talking about, it would be impossible to discuss it with them.
A person takes coins from a piggybank
IS IT COMMON FOR PARENTS TO TAKE MONEY FROM THEIR KID’S SAVINGS?
If your kid is in primary school or older, you could explain your situation and ask them if they’re willing to help. Some parents feel that being straightforward is better than taking the money without their children’s consent. Sometimes parents are forced to ask for permission and feel nothing wrong.
A parent explained their story on Today’s Parent, emphasizing that they’d never borrow money from their children without their permission. “I borrow money from my kids. And until recently, I never saw anything wrong with that,” she added:
“I have never taken from them without permission, and I’ve never borrowed what I can’t payback. But, over the past six years, I have also never hesitated to ask either of them for money if I’m short.”
Times are unpredictable. People who are struggling with debt and bills often have little financial resources and are forced to use their savings. According to The Independent, one-fifth of parents borrow money from their kids’ savings to pay for living expenses.
The couple counts the amount they took from the bank. The study revealed that parents often raid their children’s savings in order to pay for household living expenses.
The study emphasized parents raided their children’s savings to provide for their household living costs. Researchers polled around 5,000 parents and found that one-fifth of them borrowed finances from their kids’ piggy bank and savings accounts to pay for their living expenses.
Jody Coughlan, a money manager at comparethemarket.com, said that parents need to ensure that they’re able to afford to give their kids pocket money without dipping into it to cover their household bills. People on Quora once emphasized if it was okay for parents to ask for money from their children’s salaries.
A person puts money in a piggybank
Several people from the online community shared their mixed opinions about the matter. While some claimed it’s okay to borrow from children as long as parents can repay them, others were totally against the concept. One person commented against the idea, saying that saving money is a learning factor for kids, and added:
“If you take away their money, you’re taking away a super important life lesson, especially when your child does everything they can to earn the money.”
Other parents believe that since they’re responsible for putting money in their kid’s savings, they don’t need to ask for permission to take it back.
THE IMPORTANCE OF MONEY If you take money from your kids when they’re young, they may be more likely to make money from your wallet when they’re older.
THE IMPORTANCE OF MONEY
If you take money from your kids when they’re young, they may be more likely to make money from your wallet when they’re older. You may think that borrowing money from your family is normal. Your children may not realize that you are setting a bad example.
You can still be a responsible parent if you have a conversation about money with your kids. You can learn to help your kids build a healthy relationship with money and let them know the importance of it in today’s competitive world.
A person counts a wad. Photo by Unsplash. Have you ever borrowed money for your kids’ piggy banks?
Have you ever borrowed money from your kid’s piggy bank? Many parents have. Some parents view this as a delicate situation. Others see it as morally disgraceful and similar to stealing from the poor. “It’s my money, anyway,” Some parents claim they are justified by their situation while others try to justify it.
Recall your childhood and how your parents helped you to equate money and finances to it. Were you frugal? Did you spend on things that weren’t necessary? Is it okay to borrow money from your children even though you have seeded it for them? Let’s start the conversation! We appreciate your reading!