‘I’ve never even heard of someone doing that’: This Houston student paid his college tuition with 30% interest rate credit cards — and manages to flummox Caleb Hammer

“I didn’t know better back then,” he told Caleb Hammer on a recent episode of his YouTube show, Financial Audit. “I've never seen that,” Hammer responds, flabbergasted. “Never even heard of someone doing that.”

As it turns out, Isaac’s lack of financial literacy runs much deeper — but Hammer sees a way out for him.

Complicated family dynamics

As a full-time student, Isaac doesn’t have the cash to pay for his basic essentials. He claims to occasionally deliver food via delivery apps, but hasn’t generated any income from these side gigs over the past month.

Instead, his basic expenses are supported by his father. Hammer calculates that Issac’s dad transferred a total of $600 over the past month. The car he drives for food deliveries is also a hand-me-down from his father. In fact, Issac claims his dad is the reason for his most bizarre financial decision: “The main reason that I put my tuition on my credit card was I thought my dad would help me pay it off,” he told Hammer.

“Sounds like you’re spending money you don’t need to be spending and then he [dad] is bailing you out,” Hammer responds.

On the surface, Issac’s situation seems typical. Nearly half (47%) of Americans claim to financially support their adult children in some way, paying an average of $1,384 for their basic necessities, according to a survey by Savings.com. (Which researchers note is more than twice what they reported putting in their own retirement accounts.) The rising cost of living has compelled many young adults to lean on family for economic support.

However, Issac’s situation isn’t typical. Later in the interview, he reveals to Hammer that he expects his dad to support him financially because he gave him $15,000 of his savings for a down payment on the family home when he was just 18 years old. Issac originally expected some of this money back to help pay for college, but has now given up on recovering it.

Gifted down payments are fairly common, with 23% of first-time home buyers in 2023 claiming to use a gift from friends or family to finance their purchase, according to the National Association of Realtors (NAR). However, it’s much more common for these gifts to be handed down from parents to children — not the other way around.