The issue brought up was how it will be repaid and whether or not it would be repaid with interest. It was said that it is okay to do so as long as their are guidelines and deadlines for repaying it. "That said, there is nothing unethical per se about borrowing from the trust in order to provide your family with the basic necessities of life."
In my opinion I don't see a problem with doing so as long as the reason for borrowing from the trust was for a good reason like providing for your family. Also as long as it is repaid in a reasonable time period.
What do you think? If you were short on money would you borrow from your child's trust fund?
http://www.forbes.com/2010/10/11/child-trust-fund-personal-finance-parents-loan.html
First of all, great title.
ReplyDeleteSecond of all, when I first read the topic I thought, "No way I would do that! It's just wrong!" Then, I thought about it and it actually makes sense. As long as you are borrowing it because you need the money (like for food or to pay bills) for the family, I think it's acceptable; going to a concert is NOT a need.
That's a really interesting ethical question, though. I hadn't thought about it before now.
Interesting article. I would only see borrowing from a kid's trust fund as acceptable if the family cannot provide the basic necessities. It's more important to make sure the child isn't starving or homeless. But I also think parents have to be careful to not become dependent on taking money from the trust fund. Guidelines are necessary in these cases.
ReplyDeleteAs a parent of two children, I have been in this type of situation. We have had some hard times and had to use some money from the children's saving as a LAST RESORT. We did repay as soon as the additional fund were available. The needs of the family come first. In talking about ethical and unethical, it would be unethical to let a child go hungry if there were funds available in that fashion.
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