Sometimes a situation arises when you must make a decision on whether to use money that you had earmarked for a specific event for something other than its intended purpose. These financial decisions can be some of the hardest to make and is one that I recently received from a reader who wanted to get a more objective opinion on the situation.
When my mother and father died, they left a gift of $10,000 to my son for his college education with me as the guardian for the money. Due to some unexpected medical expenses, I now find myself with about $10,000 in credit card debt without any way to pay it off. Do you think it’s reasonable for me to use the $10,000 that was meant for my son’s education to pay off these debts? I would start a new fund for him and I am sure that by the time he becomes college age I will have $10,000 in the account again. Part of me feels like I am stealing money from him while another part of me feels that this is the right use for the money at this time. I need to get some outside objective opinion to help me decide which would be best since I feel I’m not able to look at the situation objectively. If you were in a similar situation to, what would you do?
Here’s your chance to chime in and give your objective opinion as an outsider to the situation as she requested. What would be your advice to this person?