Many families in America have bank accounts for their children. This is where they deposit birthday money, Christmas money, and any other funds the children might have like monthly deposits for their education. This money should be considered untouchable in all situations unless there is an emergency. However, if a situation arises where the family is about to lose their home, have their power turned off, or has no food to eat, then taking out a loan from your kids is actually a pretty good idea. You will need to create a plan to repay the money and be faithful about doing so, but in the short term if the money your children have will help you survive then it’s worth the damage to your pride.

Sure, this is never an easy decision and it shouldn’t be one that you make lightly. Any money you borrow from your children should be done in an open way that requires repayment in a certain period of time. In fact, once you get a new job you can have automatic deductions set up to go straight to their account. I’m not advocating that you borrow money from your kids’ accounts to buy gifts, take a vacation, or do anything of that nature. However, in emergency situations like a healthcare crisis or other family crisis that requires immediate funds then this is a viable option for many.

With the economy in the dump and the future looking bleak, many families are finding it hard to put food on the table. In many situations one parent is out of a job and in quite a few the other parent has had their hours cut back. When you remove a family’s income like that it is very difficult to pay the bills and survive. If your children have some money in their accounts that would help your family survive these hard times then don’t feel guilty about using it. Sure, you worked hard to save that money for your children’s future, but you should also focus on the here and now. You can always pay the money back in a few months when you are back on your feet. Just make a pact with yourself that you will not take the money unless you are positive you will pay it back.

Posted in Home Budget

Related Articles: