Social Security for Minors-

[PiCO]

My daughters both get a substantial amount of social security, because I'm a widow. I am supposed to keep track of how much money I spend on them, and how much I save on their behalf. I was saving most of the money in a college savings account for them, because that's the right thing to do... right?

 

Turns out not. Any money I save has to be in an account that will never lose value, such as a savings account at a bank.

 

I've been declaring a lot of savings but not much living expense because I just pay the living expense myself. The lady at the ss office told me to turn that around- put my money into their college accounts, and spend the social security.

 

My problem (?) is that I own a business that covers our rent and utilities. The business also pays my vehicle expense. So- can you help me think of expenses for my kids that I can use their ss money for?

 

I appreciate any help you can give me!

[gardening momma]

Groceries, clothing, medicine, toilet paper, school supplies, school fees, extracurricular activities, dental & medical expenses

Edited January 12, 2010 by gardening momma

[Paula in MS]

I've never had to itemize any expenses. They told me at SS that they just wanted to make sure the money was spent on her. In reality, it just goes into one big pot in our household.

 

You could theoretically allocate a portion of all household expenses as "their" expense. House payment, utilities, medical, food, extracurricular activities, school books, gifts are all expenses that you can use. The social security money is to help you care for them and would include living expenses. (That's what they told me, anyway.)

 

At first, I stressed out about trying to make sure every cent was accounted for, but not anymore. We have an ESA set up for her college, but I never report it. I just say that we spent the entire amount every year, which we do and then some.

 

Paula

[Caribbean Queen]

Food?

[Stacie]

Don't forget memberships, such as zoo, museum, gym, and clubs like 4H. Also any private tutors, reading books, summer bridge books, drivers' ed classes, movies and other entertainment, groceries, and restaurant dining.

[Rosy]

I am supposed to keep track of how much money I spend on them, and how much I save on their behalf.

 

Are you sure about this? My mom was in this situation and she was never required to track how she used her money. Sometimes gov't workers ask for more information than they are entitled to know.

[Paula in MS]

Are you sure about this? My mom was in this situation and she was never required to track how she used her money. Sometimes gov't workers ask for more information than they are entitled to know.

 

 

You only have to lump the total into a saved category and a spent category. You don't have to itemize anything. If you saved the money, they want to know what account the money is in.

[MyThreeSons]

Are you sure about this? My mom was in this situation and she was never required to track how she used her money. Sometimes gov't workers ask for more information than they are entitled to know.

 

Once a year, we get a form to fill out. They tell us how much SocSec money we received for each minor, and we have to say how much of that was spent on their behalf, and how much was saved. As a previous poster said, it all gets spent for our day-to-day living expenses. We've never been asked for any details.

[Red]

Food

Clothes

Medical Insurance

Medical expenses

Extracurricular fees

Gas/Transportation cost to take child places

Dental expenses

School materials

Cell phone use/service

Internet use/service

Memberships to clubs, museums, zoo and gym

[PiCO]

You only have to lump the total into a saved category and a spent category. You don't have to itemize anything. If you saved the money, they want to know what account the money is in.

 

This is true. However, they can audit you if they don't really think you are spending all the money on the children.

 

Unfortunately (as far as ss is concerned), I have very low normal living expenses- so I am having to think outside the box.

 

Thanks for your help, everyone- I got some great ideas!

[tdeveson]

Computers, Netflix, Internet service -- they can't study without that.

[ConnieB]

Well, your signature line contains quite a few I think:

 

Afterschooling 2 dds

11 yr old gymnast

16 yr old diver/gymnast/trackster

 

 

Afterschooling requires books, supplies, and if it's done by someone other than you then teacher/tutor costs.

 

Gymnastics, track, diving.....those are expensive

[Karen A]

Question for the OP--Did the person from SS explain WHY you don't want to be saving it all? I've been doing the same thing, but heard on another board (a young widow board) that we should be spending SS. Like you, our living expenses are low, and I have been using other money for that, and saving the SS--but I don't want to get it trouble with SS either...

 

Thanks, and I'm sorry for the loss of your husband :(.

[gardening momma]

Computers, Netflix, Internet service -- they can't study without that.

Sure they can. We all did when we were kids/teens!

[PiCO]

Question for the OP--Did the person from SS explain WHY you don't want to be saving it all? I've been doing the same thing, but heard on another board (a young widow board) that we should be spending SS. Like you, our living expenses are low, and I have been using other money for that, and saving the SS--but I don't want to get it trouble with SS either...

 

Thanks, and I'm sorry for the loss of your husband :(.

 

You are allowed to save the money, but it has to be in an account that is guaranteed to not lose value. I have the money in a college savings account through the brokerage, so it's no good for social security.

 

Evidently SS is cracking down on this now (slamming the barn door after the horse has escaped?) I have a friend who is a young widow, and she received the same phone call.

 

BTW- the woman I talked to said instead of saving the social security money and spending my money to raise the kids, I just need to reverse that and spend the social security and save my money.

 

It was difficult for me to figure out that I do spend *that* much money on the kids every year, but I was able to figure it out.

[PiCO]

Computers, Netflix, Internet service -- they can't study without that.

 

Computers and Internet are covered by the business, but Netflix is a great idea!

[KristenS]

Wow, I wonder what my mom did? I don't recall her having to itemize so much. Nor did we get any savings. :) Now I'm curious ... I'll have to ask her. (FWIW, I expect it was for living expenses and extracurricular stuff ... my sister's expenses at her private school, likely.... free tuition but there were still a lot of costs.)

[PiCO]

Wow, I wonder what my mom did? I don't recall her having to itemize so much. Nor did we get any savings. :) Now I'm curious ... I'll have to ask her. (FWIW, I expect it was for living expenses and extracurricular stuff ... my sister's expenses at her private school, likely.... free tuition but there were still a lot of costs.)

 

You don't have to itemize. But I have an unusual situation in that my living expenses are extremely low. I wanted to be able to justify spending all the social security if I get audited. I also want my kids to have the savings... I figure they are growing up without a dad, they might as well get something.