'My Parents Are Financially Abusing Me'—A College Kid Used His $3,999 School Refund To Pay Off Debt, But His Parents Say It Belongs To Them
A 22-year-old college student called into 'The Ramsey Show' and said he was being financially 'abused' by his parents. The student, identified only as Tyler, said he had been following Dave Ramsey's baby steps and recently used a school refund to pay off debt. His parents were not happy about it.
'I got my refund from school in May and it was close to about $4,000—exactly $3,999,' Tyler told hosts Jade Warshaw and Ken Coleman. 'I used that money to pay off my debt, my car payment, and a little bit of my credit card payment.'
Don't Miss:
Maximize saving for your retirement and cut down on taxes: .
Invest where it hurts — and help millions heal:.
Tyler said his parents were furious, claiming the money was theirs. 'They were just absolutely furious about me, saying that that was their money and about the hard work they did to put me out here,' he explained.
He summed up the situation in one sentence: 'My parents are financially abusing me.'
Coleman asked for clarification: was the refund from money Tyler had earned through work, or was it part of a student loan? Tyler said it was a mix of both—federal work-study and student loan overage.
When asked whose name was on the loan, Tyler replied, 'I believe it's mom and then me. I believe I'm the co-signer on it.'
That raised a red flag for the hosts. 'You should have communicated with the parents because they're involved in this financially,' Coleman told him..
Warshaw agreed, saying that while paying off debt was a smart instinct, Tyler should have talked to his mom first. 'If your mom was like, 'Wait a minute, you took this loan money that we're both on the hook for to do this thing without consulting both of us,' I can see that,' she said.
Trending:
Tyler accused his parents of financially abusing him, but both hosts pushed back on the use of that word.
'I see no evidence of that,' Warshaw said bluntly. 'You're 22 now. Your parents can make suggestions, they can even try to strong-arm you to do things their way, but you don't have to.'
Coleman was more direct: 'You need to stop saying they're financially abusing you because this is not anywhere close to it. It's dramatic, and by the way, words matter.'
Tyler claimed the tension comes from his parents' spending habits. 'They're both spenders... My mom just bought a brand new Mercedes. My dad spends money constantly on his new truck,' he said. 'They've always been haggling me for money.'
He also said they pressured him to help pay for a down payment on a truck—something he didn't want to do. Warshaw responded, 'Then you don't have to do it.'The conversation shifted toward Tyler's financial future. He currently has $40,000 in student loans and expects it to reach around $80,000 after finishing his degree in sports management at the University of Tennessee.
'You're following in [your parents'] footsteps right now because you are taking on debt and you're going to an out-of-state school,' Warshaw said. She advised Tyler to consider in-state options or work his way through school without borrowing more money, especially since his mother is on the loans.
'Mama's going to be breathing down your neck every month, talking about, 'Where's the payment? You're messing up my credit,'' she warned. 'And that is going to jack you and her.'
Coleman added, 'Nobody cares where you get your degree from. There's a better way, Tyler.'
Read Next:Many are using retirement income calculators to check if they're on pace —UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
APPLE (AAPL): Free Stock Analysis Report
TESLA (TSLA): Free Stock Analysis Report
This article 'My Parents Are Financially Abusing Me'—A College Kid Used His $3,999 School Refund To Pay Off Debt, But His Parents Say It Belongs To Them originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
19 hours ago
- Business Wire
Nakamoto Holdings Appoints Tyler Evans as Chief Investment Officer to Lead Bitcoin-Native Capital Deployment
NASHVILLE, Tenn.--(BUSINESS WIRE)--Nakamoto Holdings Inc. ('Nakamoto'), a Bitcoin-native holding company, which previously announced its anticipated merger with Kindly MD, Inc. (NASDAQ: NAKA) ('KindlyMD'), today announced the appointment of Tyler Evans as Chief Investment Officer. Building on his six-year track record at UTXO Management, Tyler will lead the strategy and execution of Nakamoto's Bitcoin reserve deployment by originating and structuring deals across capital markets to grow the company's balance sheet and drive long-term shareholder value. Tyler brings over a decade of experience building Bitcoin-native financial infrastructure. He is a Co-Founder and Chief Investment Officer of UTXO Management, a thesis-driven, high-conviction investment firm focused on the Bitcoin ecosystem and ranked as the fifth best-performing single-manager hedge fund in 2024 by HFR. He has led capital deployment across both early-stage venture and hedge fund strategies, building one of the most active investment portfolios in the Bitcoin industry. Tyler is also a Co-Founder of BTC Inc, publisher of Bitcoin Magazine and host of the annual Bitcoin Conference. While Tyler will continue in his leadership role at UTXO Management, his appointment as CIO of Nakamoto Holdings reflects a distinct mandate to advance Nakamoto's capital strategy and long-term vision. His active presence across both organizations brings valuable perspective and network synergies that ultimately serve the interests of shareholders of both firms. 'Tyler has been a cornerstone of Bitcoin's story from the very beginning – from media and venture to asset management and public market strategy,' said David Bailey, Founder and CEO of Nakamoto. 'In addition to being a world-class investor, Tyler is a mission-driven leader with deep conviction in Bitcoin and the global experience to back it up. Bringing him on as CIO sets the tone for the bold, Bitcoin-native, and uncompromising future we are building at Nakamoto.' Tyler added, 'Joining Nakamoto presents an opportunity to redefine how institutional capital interacts with Bitcoin. We are entering an era where Bitcoin is powering corporate growth, treasury management, and global investment strategy. I am thrilled to join David and the Nakamoto team as we help shape that future alongside UTXO Management.' Tyler currently serves on the boards of Metaplanet Inc. (3350:TSE), Smarter Web Company ( and Matador (TSX:MATA.V), and LX Research. In addition to his investing work, Tyler mentors early-stage founders through the Bitcoin Startup Lab and Draper BitcoinFi Accelerator, shaping the next generation of innovation across the Bitcoin ecosystem. About Nakamoto Nakamoto is a Bitcoin treasury company building a global portfolio of Bitcoin-native companies. Nakamoto plans to establish the first publicly traded conglomerate of Bitcoin companies by accumulating Bitcoin in its treasury and by leveraging its treasury to acquire and develop an ecosystem of Bitcoin companies across finance, media, advisory and more. The company aims to provide commercial and financial infrastructure for the next generation of capital markets. For more information, please visit Forward-Looking Statements All statements, other than statements of historical fact, included in this release that address activities, events or developments that Kindly MD or Nakamoto expects, believes or anticipates will or may occur in the future are forward-looking statements. Words such as 'estimate,' 'project,' 'predict,' 'believe,' 'expect,' 'anticipate,' 'potential,' 'create,' 'intend,' 'could,' 'would,' 'may,' 'plan,' 'will,' 'guidance,' 'look,' 'goal,' 'future,' 'build,' 'focus,' 'continue,' 'strive,' 'allow' or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the proposed merger and related transactions, (collectively, the 'Transactions') the expected closing of the proposed Transactions and the timing thereof and as adjusted descriptions of the post-transaction company and its operations, strategies and plans, integration, debt levels and leverage ratio, capital expenditures, cash flows and anticipated uses thereof, synergies, opportunities and anticipated future performance, including the management team and board of directors of the combined company and expected use of proceeds from the Transactions, and any post-closing transactions contemplated between the combined company and BTC Inc (and/or UTXO, LLC through BTC Inc). Information adjusted for the proposed Transactions should not be considered a forecast of future results. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this release. These include the risk that Kindly MD and Nakamoto businesses (which may include the businesses of BTC Inc and/or UTXO in the future, as applicable) will not be integrated successfully and the risk that Kindly MD or the applicable governing bodies of BTC Inc and/or UTXO may not pursue or approve the terms of an acquisition of BTC Inc and/or UTXO; the risk that cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the possibility that shareholders of Kindly MD may not approve the issuance of new shares of Kindly MD common stock in the Transactions or that shareholders of Kindly MD may not approve the Transactions; the risk that a condition to closing of the Transactions may not be satisfied, that either party may terminate the merger agreement, the subscription agreements of the convertible debt purchase agreement or that the closing of the Transactions might be delayed or not occur at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the Transactions; the parties do not receive regulatory approval of the Transactions; the occurrence of any other event, change, or other circumstances that could give rise to the termination of the merger agreement relating to the Transactions; the risk that changes in Kindly MD's capital structure and governance could have adverse effects on the market value of its securities; the ability of Kindly MD and Nakamoto to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on Kindly MD and Nakamoto's operating results and business generally; the risk the Transactions could distract management from ongoing business operations or cause Kindly MD and/or Nakamoto to incur substantial costs; the risk that Kindly MD may be unable to reduce expenses or access financing or liquidity; the impact of any related economic downturn; the risk of changes in governmental regulations or enforcement practices; and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond Kindly MD's and Nakamoto's control, including those detailed in Kindly MD's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and such other documents of Kindly MD filed, or to be filed, with the SEC that are or will be available on Kindly MD's website at and on the website of the SEC at All forward-looking statements are based on assumptions that Kindly MD and Nakamoto believe to be reasonable but that may not prove to be accurate. Any forward-looking statement speaks only as of the date on which such statement is made, and neither Kindly MD or Nakamoto undertakes any obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Yahoo
20 hours ago
- Yahoo
Spokane man surprised by $140K tax bill after he withdrew cash from 401(k) — what Ramsey Show hosts say to do
Marty from Spokane, Washington, thought he was taking a smart step toward debt-free homeownership. But pulling $400,000 from his 401(k) to buy a house left him with a staggering $140,000 tax bill. 'I just recently found out that when I go to file my taxes, I am going to owe roughly $140,000,' he said, calling into The Ramsey Show. 'I really don't want to do a payment plan with the IRS, but I just don't know the best path forward.' Marty thought he had paid all the fees and taxes when he withdrew the money, but said, 'I was misinformed that it had been paid… and I didn't realize it hadn't been done until I went to file my taxes.' Marty has a few ways to come up with the money: He could use a line of credit like a HELOC or credit card, dip into his $60,000 in savings, or take out a personal loan from a bank. But The Ramsey Show co-hosts Jade Warshaw and Rachel Cruze were clear: some of those options could make things worse. They advised against using a home equity line of credit (HELOC) or a credit card. 'I would not do a HELOC,' Cruze said. 'I would not put your home at risk. With HELOCs, the interest rates are sometimes insane.' As for credit cards, the interest rates tend to be even higher and more volatile, and the debt can spiral fast. That's a dangerous mix when dealing with a large IRS bill. Instead, Warshaw and Cruze recommended pulling from Marty's savings and using a personal loan from a bank to cover the remainder. 'Use your savings, then get a personal loan to pay the IRS off as quickly as possible,' Warshaw advised. 'Because I'd rather owe a bank than the IRS at this point,' Cruze added. IRS debt can lead to aggressive penalties, interest and long wait times when trying to resolve issues — which is why they emphasized handling it quickly, cleanly, and without risking other key assets like retirement accounts or home equity. 'You're already in the hole,' Cruze said, adding '...be in the hole with a bank.' Marty's story serves as a reminder to avoid dipping into retirement accounts, especially if you don't fully understand the tax implications. As Warshaw concluded, 'No more leveraging very important things for debt.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) In a financial emergency, your 401(k) might look like a tempting source of fast cash, especially when you see a hefty six-figure balance just sitting there. But taking money out of your 401(k) before age 59½ can come with serious consequences that extend far beyond the immediate tax year. You're typically hit with a 10% early withdrawal penalty and ordinary income tax on the total amount that you've withdrawn. For example, let's say you withdraw $20,000 from your 401(k) before age 59½: $2,000 goes straight to the IRS as a penalty (10%) Assuming a 22% tax bracket, you'll owe another $4,400 in income taxes Total cost in fees and taxes: $6,400, or 32% of your withdrawal The amount you'll actually keep: $13,600 Aside from the fees and taxes, there are long-term implications, too. Lost investment growth: Money withdrawn from your 401(k) isn't just taxed, it's no longer growing. A $20,000 withdrawal today could have grown to $80,000 or more over 25 years with compounding returns (assuming an average of 7% annual growth). Tax time shock: Many people think taxes and penalties are deducted automatically. But if you don't withhold the right amount when you take the distribution, you may owe thousands when you file, with penalties and interest if you can't pay on time. There are some exceptions where tapping into your 401(k) early may be the only option: Avoiding foreclosure or eviction Job loss with no savings or access to credit Disability or death (in which case, penalties may be waived) Hardship withdrawals, like for terminal illness (may be exempt from the 10% penalty, but you'll still owe income taxes) Before dipping into your retirement funds, consider other options: Emergency savings Personal loans or credit union options Home equity loans, if your income supports repayment Selling non-retirement investments, like brokerage accounts Pulling from your 401(k) early can feel like a quick fix, but with taxes, penalties and lost future growth, you could lose 30% to 40% of what you take out, so it should be treated as a last resort rather than an easy solution. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
20 hours ago
- Yahoo
Spokane man surprised by $140K tax bill after he withdrew cash from 401(k) — what Ramsey Show hosts say to do
Marty from Spokane, Washington, thought he was taking a smart step toward debt-free homeownership. But pulling $400,000 from his 401(k) to buy a house left him with a staggering $140,000 tax bill. 'I just recently found out that when I go to file my taxes, I am going to owe roughly $140,000,' he said, calling into The Ramsey Show. 'I really don't want to do a payment plan with the IRS, but I just don't know the best path forward.' Marty thought he had paid all the fees and taxes when he withdrew the money, but said, 'I was misinformed that it had been paid… and I didn't realize it hadn't been done until I went to file my taxes.' Marty has a few ways to come up with the money: He could use a line of credit like a HELOC or credit card, dip into his $60,000 in savings, or take out a personal loan from a bank. But The Ramsey Show co-hosts Jade Warshaw and Rachel Cruze were clear: some of those options could make things worse. They advised against using a home equity line of credit (HELOC) or a credit card. 'I would not do a HELOC,' Cruze said. 'I would not put your home at risk. With HELOCs, the interest rates are sometimes insane.' As for credit cards, the interest rates tend to be even higher and more volatile, and the debt can spiral fast. That's a dangerous mix when dealing with a large IRS bill. Instead, Warshaw and Cruze recommended pulling from Marty's savings and using a personal loan from a bank to cover the remainder. 'Use your savings, then get a personal loan to pay the IRS off as quickly as possible,' Warshaw advised. 'Because I'd rather owe a bank than the IRS at this point,' Cruze added. IRS debt can lead to aggressive penalties, interest and long wait times when trying to resolve issues — which is why they emphasized handling it quickly, cleanly, and without risking other key assets like retirement accounts or home equity. 'You're already in the hole,' Cruze said, adding '...be in the hole with a bank.' Marty's story serves as a reminder to avoid dipping into retirement accounts, especially if you don't fully understand the tax implications. As Warshaw concluded, 'No more leveraging very important things for debt.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) In a financial emergency, your 401(k) might look like a tempting source of fast cash, especially when you see a hefty six-figure balance just sitting there. But taking money out of your 401(k) before age 59½ can come with serious consequences that extend far beyond the immediate tax year. You're typically hit with a 10% early withdrawal penalty and ordinary income tax on the total amount that you've withdrawn. For example, let's say you withdraw $20,000 from your 401(k) before age 59½: $2,000 goes straight to the IRS as a penalty (10%) Assuming a 22% tax bracket, you'll owe another $4,400 in income taxes Total cost in fees and taxes: $6,400, or 32% of your withdrawal The amount you'll actually keep: $13,600 Aside from the fees and taxes, there are long-term implications, too. Lost investment growth: Money withdrawn from your 401(k) isn't just taxed, it's no longer growing. A $20,000 withdrawal today could have grown to $80,000 or more over 25 years with compounding returns (assuming an average of 7% annual growth). Tax time shock: Many people think taxes and penalties are deducted automatically. But if you don't withhold the right amount when you take the distribution, you may owe thousands when you file, with penalties and interest if you can't pay on time. There are some exceptions where tapping into your 401(k) early may be the only option: Avoiding foreclosure or eviction Job loss with no savings or access to credit Disability or death (in which case, penalties may be waived) Hardship withdrawals, like for terminal illness (may be exempt from the 10% penalty, but you'll still owe income taxes) Before dipping into your retirement funds, consider other options: Emergency savings Personal loans or credit union options Home equity loans, if your income supports repayment Selling non-retirement investments, like brokerage accounts Pulling from your 401(k) early can feel like a quick fix, but with taxes, penalties and lost future growth, you could lose 30% to 40% of what you take out, so it should be treated as a last resort rather than an easy solution. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
