I finish all my exams and arrived home for my winter break.  The very next day, I start my holiday job at the big box retail store.  The Other Child (OC), my older sibling, was back at home because the OC quit a training program/job after six months and was about to launch an entrepreneurial effort.  The OC spend all its time at home researching and doing various things for this new business.  You know, the business that was going to be the one that succeeds.

 Bum my parent and I spoke again about the loan.  Bum was not going to cut off the Other Child completely as I desired before the OC’s business took off…which could be a number of years.  But, after having a $0 tuition bill for the last two semesters I would have to pay $9k in tuition for my final semester of law school.  That was going to hurt me financially.  But, I can’t stand by and do nothing while Bum struggled with credit card debt. 

I decided to help Bum out by giving a loan of $15,000 without any of the earlier conditions  for three reasons. 

 (1)    I would regret not helping Bum

I knew I could never forgive myself if I stood by and didn’t help Bum in Bum’s hour of need.  Thirty-years from now when I look back I knew for sure that I would regret not loaning Bum the money. I have to take some responsibility for the debt that Bum is in because I spent Bum’s money without care and did not take the adult decision of letting go of the financial umbilical cord when I was capable of doing so.

 (2)    I wouldn’t have my current savings without Bum

I wouldn’t have the hefty savings that I have now if not for Bum’s help with expenses my first year of law school that included everything except for tuition and rent such as groceries, eating out, cell bill, textbooks and supplements, clothes, gas, car insurance etc…  My second year, Bum helped me with all this plus rent.  Bum had easily spent $15k on me in the last two years while all the money I earned working during the summer went straight to my savings untouched.  September 2009 was the first time in my life when I had paid for 90% of my expenses.  Bum still pays for my cell because I am in the family plan and Bum has paid for my car insurance up to February 11.      

 (3)    I am Bum’s Safety Net. 

The Other Child’s safety net was Bum.  But, Bum’s safety net is me.  And my safety net is my savings.   Bum knew that I was sitting on some significant savings and we both looked at it as an emergency fund  that could be tapped if necessary.  I encouraged this view in some ways and have always told Bum that I would support Bum if some form of emergency came up.  I was thinking it would be in the form of some terrible accident and not credit card debt. 

 I know that Bum’s retirement savings are nowhere near robust as I would like them to be because Bum helped with both of our educational and living expenses instead of maxing out retirement contributions.  Although Bum has never asked me for this nor hinted at it, I expect and will provide no-strings-attached financial support for Bum in the future.  I wasn’t expecting the opportunity to arrive so soon. 

 And as Bum’s financial back-up, safety net, personal bank etc… I wrote the check for $15k and established a schedule for payment. 

Now that Bum doesn’t have a credit card balance due everymonth, do you think Bum will put that money towards paying back the loan or will it go towards the  Other Child?  Let me know.