BH~ need financial advice

amother

Puce

Tue, Jan 30 2018, 11:36 am

I feel awful for feeling this way! Here's my situation! Money has been tight the last few years. We receive financial aid for our children's school and my parents have been monetarily helping. BUT we still live pretty much paycheck to paycheck. Our tax returns give us some wiggle room but by this time of year we usually spend that savings. I have been davening to not feel the stress of living on such a tight budget. (we don't go on vacations (just day trips)and hardly buy any extras. My parents buy a lot of our kids clothes..and even sometimes clothes for me too! I hate shopping and spending money) Well, Hashem heard my prayers! We sold our condo a few years ago to buy a house and somehow there was a deposit of $12,000 that was never returned to us. We already know where we are going to donate $2,000 but $10,000 would give us some really wanted breathing room! I have no plans on spending it on anything! Just want to keep some savings so we don't need to stress month to month..this is where I feel awful! My first reaction is that the school is going to take it right away! They'll see we got this money and not give us any financial aid and I will be in the same place- living paycheck to paycheck. Any way I can invest it so I can make a small monthly return to give us some financial relief? Or is that not even ethical since we do receive financial aid and help from my parents..I am so lost as to what I should do with this!? Any advice? Thank you!!!

amother

Emerald

Tue, Jan 30 2018, 11:44 am

you can talk to your parents. personally I would want my kids to have some savings unless I'm living without savings in order to to help them but that's a pretty bad situation that I would not be ok going on for very long. I would like to think that I personally though have never been in the position would say something to the school as well even though that might be a little "riskier". I would tell them the situation. I would hope that they would let you keep most of the money. I really think having some savings is important and would hope the school would agree.

amother

Sapphire

Tue, Jan 30 2018, 11:57 am

First of all - this is not 'income', if I understand you correctly. This is money that you used to have in your bank - then you gave it to someone and now you are getting it back. Its lovely that you want to donate some of it - but I don't think it falls under anything obligated for Maaser.

Does your school ask you about your bank account balances when they figure out subsidy?

amother

Puce

Tue, Jan 30 2018, 11:58 am

amother wrote:

Yea I think my parents will just be happy that we got this kind of relief. I guess I am more nervous about the school.

amother

Puce

Tue, Jan 30 2018, 12:02 pm

amother wrote:

For the donation, it is something we really wanted to do in memory of my mother in law and BH we can now do it!

Yes the school asks about EVERYTHING related to money. Also, I'm assuming we need to report this on our taxes? And we submit our tax returns to the school

amother

Sapphire

Tue, Jan 30 2018, 12:08 pm

amother wrote:

Its not income - should not go on your tax return. (assuming I understood what you wrote).

You are home owners. 10K in savings isn't unreasonable (but unfortunately, often neither are tuition committees).

33055

Tue, Jan 30 2018, 12:10 pm

amother wrote:

This money may not be income and it may not appear on your taxes. It is unclear what it is.

Can you pay back your parents for all their help?

amother

Puce

Tue, Jan 30 2018, 3:47 pm

Thank you all! This is all very helpful advice! I really need to see if this is considered income...all my husband said that it was some type of deposit that was never returned to us. I don't really know what that means...I don't know if it was taken from the profits from selling our condo or what?! ...I do think the school asks how much money you have in your bank accounts...the financial aid form is intense! I sweat over filling it out every year from the 10pages of financial questions!

amother

Sapphire

Tue, Jan 30 2018, 4:11 pm

amother wrote:

right. you need more detail. Deposit seems to indicate it was your money - that you are getting back.

If its additional proceeds from the sale (like money held in escrow) - that's different. (but probably a non-issue from a tax perspective).

amother

Puce

Thu, Feb 01 2018, 1:53 pm

Ok we decided to use the money to pay down most of our car loan! When we had our 3rd child we needed to buy a car and of course mini vans are $$$- so now we can pay off for most of the car! BH! and the car loan interest is at 3.5% which is way more than any savings account or short term investments.