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Liability for money given to me to xfer to kids accounts

jocey_g

How would I account in Quicken when relatives give me checks that I deposit in my own account, but need to xfer the money into the kids account? I set up a liability "money due to kids". When I deposited the money in my account, I assigned it to this liability acct as a positive number, but when I pull a report of debts, it's not showing up under the liability.
I want to make sure I don't have money sitting in my account that isn't mine, so want to go back and re-account for these gift transactions.

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jocey_g

Actually, I think I need to know how to reduce the liability. Here's an example.

I deposit $500 (due to my kid) in my checking. I accounted for that by attributing it as a xfer to liability account "due to kid". I can see that in the liability section.

Let's say a month later, I transfer that money from my checking to my child's savings. If I do a transfer from my checking to my child's savings and then put another line item to reduce the liability "due to kid", what would the offset be to balance the transaction??

q_lurker

I view the deposit as a transfer from the [due to kid] liability account. No change to your net worth. Your assets went up and so did your debts.

When you pay the kid, it is a transfer to the liability account. Your assets reduced but your debt is also.

Same syntax on the category field for both transactions.

q_lurker

Is your kid’s savings account in your Quicken file? That could be more confusing. If so, it should at least be a ‘separate’ account. In that case, I would perhaps still do as I just offered, and then make a separate transaction deposit in that kid’s account as ‘Gift received’, memo ‘from Uncle Fester’.

jocey_g

OK, I agree. So from my checking, I create a $500 liability when I put the money into my account.

Then, the money moves physically from my account to the kids savings. So in my checking register, I have to transfer the money to Kids savings account (which is also have set up in Quicken). But then the liability doesn't reduce. I must have to create a split transaction which reduces the liability, but what can I use to offset THAT transaction? I'm probably making this harder than it needs to be.

jocey_g

ahhh!! OK, yes, you read my mind as we were typing together! I bet that will do it!! Thank you. I'll play around with it that way

Frankx

Hi @jocey_g

You said:

jocey_g said:

I have to transfer the money to Kids savings account (which is also have set up in Quicken).

To be clear - is the "Kids saving account" in YOUR Quicken datafile, or in a separate datafile(s) (e.g. perhaps one for each child)?

If they are just bank accounts in your datafile, they are being reflected in your new worth, which is not technically correct. If their savings account(s) are in your datafile, and you don't want to setup a new datafile for each child, then you should consider using the "separate account" feature. These accounts are not part of your net worth and are shown separately from your accounts.

Let me know if you have nay followups.

Frankx

jocey_g

Yes, unfortunately when my oldest was born in 2008 I linked her bank accounts to my data file (and did the same with my second child). I do see the option to keep it separate. I’m thinking the transactions will continue to download, but will no longer be reflected in my net worth?

With so many transactions, I don’t see a way to go back and have it in its own data file (at least not easily).

And thank you both by the way!

Frankx

Hi again @jocey_g

Yes - the downloading of transactions into those accounts will not be affected by the change, and both bank accounts will be removed from your net worth immediately.

Let me know if you have any followups.

Frankx