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Ask Dave

Use Trust Fund For Kids College or Debt?

Rebecca wants to use the trust fund to pay off their debt, but her husband doesn't. Who's right?

QUESTION: Rebecca wants to pay off debt using her husband’s $300,000 trust fund, but he doesn’t want to touch the money.  He wants to use it for their kids’ college education.  What should they do with the trust fund money?

ANSWER: You’ve got more than enough to pay off your debt and fund your kids’ college education and that’s what you should do.

The only problem is that you have a bad set of money habits.  If you use the trust money and keep your old habits, you’ll be right back where you were before you got the trust fund.  You need to go through Financial Peace University and apply new money habits that will change your family tree for good.