Loans to children
After loaning money to one of my children is there a way to track the repayment? Is there a way to carry the negative balance forward so that you know at a glance what their balance is?
I just set up a budget account called Owed by Kids. And when I transfer money to them I don't need to add a category. When they pay it back, I record it in the account I deposit it (or cash envelope) and use the transfer:Owed by Kids payee. This will show as a positive balance since it is an asset for you (receivable) but you will be able to see the amount. You can also then filter the account if you need to discuss with them. Easy peasy.Reply
Hi, Blue Memory
I chose to set up this kind of loan (in my case to a sister) with a tracking account, which is similar to the way I deal with reimbursable office expenses or eligible health insurance claims.
Money I loaned was entered as a transfer to a tracking account (named sister’s loan), categorized to an emergency category, with a note in the memo field.
As/when she makes a payment, I record that as a transfer from tracking to chequing, categorized as an inflow of income, and then I can budget the returning funds.
This enables me to see how much is outstanding.Reply
I set up a credit card account, but called it called "Family loans"
I then put the transaction as a credit card purchase (With the Money budgeted) and when the money gets paid back I then put that money back onto the family loans and record as a payment recording the payee's name and mark with category colourReply