Mississippi dad says he raided his 4-year-old's savings for $8K+ to pay off debt, justifies 'he won't know.' Will he be able to pay his son back?

Some of the vacations Christian took with his wife and son include getaways to Disney World and the Bahamas, and four trips to New York in the last year. Initially, he used credit cards to cover the vacations. But when facing sky-high credit card interest rates, he decided to ‘raid’ his son’s savings account to cover the costs.

In total, he took $8,000 to $10,000 out of his son’s savings account, draining it completely.

“He won’t know,” says Christian.

According to Christian, it’s like a “zero-percent loan” because he plans to pay his son back at some point. But with the family carrying another $90,000 in debt, it seems unlikely he’ll get around to paying his son back anytime soon.

Family First or Financially Reckless?

“I want him to have a good childhood,” said Christian, “I’ll pay him back one day. We’ll get there. Eventually.”

But without any concrete plans to repay his son, the “borrowed” funds may put the four-year-old’s future at risk. And, notably, Christian didn’t save up those “borrowed” funds for his son by himself. Instead, the savings account was mostly funded with gifts from well-meaning relatives and friends intended to set up the child for a brighter financial future.

As if draining your child’s savings account to prevent discretionary purchases from racking up interest on a credit card isn’t bad enough, Christian admitted to doing this without letting his wife know. And his plan of paying off the credit cards didn’t last too long because he’s already carrying a new balance on his cards.

Beyond “borrowing” from his child’s savings, Christian has racked up around $90,000 in debts, not including his mortgage. In addition to endless vacations, constantly eating out seems to be a major reason for this debt.

In part, this slide into debt has forced his wife to make some dramatic career changes. Christian’s wife recently rejoined the military, according to Christian, because “I’ve put us in a financial hole.” And with growing debts, the household is carrying a heavy financial burden.

Unfortunately, Christian’s situation isn’t all that unique. On average, Americans carry $105,056 in debt, according to Experian. (2) And, like Christian, 74% of Americans admit to emotional spending as a coping mechanism that leads to spending too much, according to a survey from LendingTree. (3)

This endless emotional spending, partially to make memories as a family, is actually putting the child’s financial future at risk. As a newly married couple, Christian’s reluctance to share his spending decisions with his wife and her understandable unwillingness to combine their finances highlight the pressure these financially reckless choices are putting on the household.

Building a Bright Financial Future for Kids

Even when making decisions in the name of good memories, those choices can still have long-term financial impacts. If your child is lucky enough to have savings to their name, either through family gifts or your own diligence, it’s critical to protect those funds for their future.

Of course, tapping into all available funds makes sense in some situations. For example, if your child needs expensive medical treatments or must attend a specialized school to suit their needs, leaning on funds earmarked for their future might be understandable if you don’t have any other options. But draining your child’s savings account to cover vacations or other discretionary purchases is never a good idea.