How to record “money laundering”

My kids occasionally get cash for gifts, small jobs, etc. They give me the cash and I transfer the same amount from my checking account into their checking account. I thought about recording this as a simple transfer from my checking account to my cash wallet account. But really I transferred to my kids account and ended up with cash. What is the best way to record this?

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  • Just use a "money laundering" category for both the inflows and outflows. If you have multiple kids you might want category per kid for easier tracking.

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  • If the outflow from checking happens at the same time as the cash receipt, I record this as you originally did it (as a transfer) for the simplicity of a single transaction. From the standpoint of your budget the kid is effectively an ATM machine. (I do the same thing for joint lunches with friends when I pick up their cash and put the entire bill on a rewards credit card.)

    Otherwise, I run it through their Reimbursement category. Whether I make a transfer or not depends on who is "behind".

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  • Thank you very much! Two great ideas; I will just do a transfer in immediate cases, but I’m setting up categories too for the longer term reimbursements. Thanks again!

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  • Money Laundering 😂😂😂 I have a category for this a la Nolesrule's suggestion above. I call mine Bank of Mom, but now I might change it. 

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 mths ago
      • Reported - view

      Vibrant we actually use a lot of categories because the destinations may be different. Each kid has a Spending (BOMAD) which can sit with us or go to their main transaction account, Savings (for transfers to Savings), and Investments (for transfers to their brokerage accounts. And of course Allowance.

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  • I know what I'm doing. I'm calling the FBI! I'm watching and taking names! 🤣Be careful, I've watched all three seasons of Ozark.

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  • 2 mths agoLast active
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