Abdur Rahman ibn Yusuf Mangera – Q&A The Correct Way of Spending Child Benefits and Tax Credits

The money we get as child credit do we have to make sure it's only

spent on them Do we have to make a separate account for it? From my

understanding of child credit, child credit is not only to be

spent on the children, child credit is essentially a top up for

families who are not making this particular amount of threshold

that the government has in mind. So the there's obviously tax,

there could be tax that's taken off, or sometimes if you're making

below the threshold, no tax will be taken off. But then you get

topped up money, which is to spend as a family. So it doesn't belong

to the husband, or the wife or the children in particular, it belongs

to the family as a whole to spend on them. So they can decide how to

spend on it. In general, it doesn't have to be restricted only

for the children. Child Benefit is a slightly different, but child

credit. Child credit is definitely for the whole family to spend, you

know, for what could be rent, it could be food, it could be

clothing for anybody, of course, it would be abused for just one

person to spend it on themselves, and not on anybody else, or just

to save it for themselves or send their because sometimes what you

have here a wide, what I've seen as questions coming through is

that a person will say that my husband is taking all the money

and sending it to his family, you know, in another country, or the

wife is keeping it or whatever the case is, it's for that family to

spend and to basically live their life with when it comes to child

benefits. Child Benefit is more specifically for the children. But

again, do you have to save it and only spend it on the children? It

depends. If the only money you spend on your children is from

child benefits, then of course, all that child benefit has to go

to them, because you're not spending anything else on them. So

all of their food, their clothing, the they're part of the bills of

the house, you know, you're so particular that you spent

everything from the child benefit on them, then that is obviously

the case. But if you're spending on them with your own money

anyway, which means that you're spending with your salary or with

the money of the household, your spending on their clothes, or

anything else like that. And generally speaking, it's up to the

amount of what you receive, the cost that you incur, in bringing

up your children is similar to the child benefit that you're getting,

then you can use that child benefit because you've already

spent, you know, 100 pounds, you're getting 100 pounds of child

benefit for so many children or whatever it may be, you've spent

100 pounds on your on your children anyway, then then that's

fine. So that's the way to look at these things. It's not kind of

like money that's given specifically to the children. It's

money given to spend on the children. It's not an investment

for them. It's not money that you should keep aside for investment,

if you can, if you want to. That's entirely up to you, but just you

don't have to investments are a different thing altogether. This

is not what the government from my understanding is giving Child

Benefit for. That was the fun that was the child fund that they had

where, which worked for several years where whenever you had a new

child, then they put a certain amount in a particular fund for

them. That was a different issue of investment. This is not an

investment