Would You Use Kids' Money to Pay Debt?

[TBH]

The money is technically yours, because it's a tax credit from your earnings. But I do this all the time too: divide my money into little pots (usualy separate accounts) and make rules for myself about what each pot can be used for.

Example: My emergency fund can be used for money-saving improvements to house, major repairs, vacations that have been planned at beginning of year, and large money gifts to friends in need (amount available for money gifts also decided at beginning of year). Cannot be used for general living expenses or frivolous cosmetic house repairs.

So I think this is your money and you should use it, but stick to the rule that you set for yourself (that it's for the kids' futures) by paying it back.

You sound like you're doing great! I like how you've got your goals in your signature. Keep it up.