How would spend this money?

[Gray's Mommy]

We have a little bit of money tucked away (about $800) & I'm trying to decide the best way to spend the money...

option one: pay my middle son's nursery school tuition for almost the entire school year & don't pay bills with it

option two: pay off several smaller bills with it & then make monthly payments on the tuition.

Tuition is $125 per month with a $20 twice a year supply fee. It is based off of 9 months.

I keep thinking I want to pay of the tuition & not worry about that expense monthly, but then I want the bills to be gone too

How would you spend it?

[abiyhayil]

how much do the payments for the smaller bills add up to a month? Whichever was smaller I would probably keep

[cristina47454]

Do you get a discount for paying the tuition upfront? Our preschool offered a 10% discount. WOrth asking about! Do your smaller bills have interest attached to them?

Honestly, if there is no incentive to pay the tuition up front (except peace of mind) you are better off putting it in an interest bearing acct and paying tuition monthly (although I realize interest rates are pretty lame right now...)

[Gray's Mommy]

No discount on paying up front & the bills far outweigh the tuition...medical bills from my homebirth turned cesarean birth. I'm tired of owing everyone & getting put in collections because we haven't paid in full.

[zinemama]

Pay the bills.

[swd12422]

Bills, definitely, especially since you mentioned collections. The school doesn't expect you to pay up front, but the creditors do.

[velochic]

Do the bills have interest accruing? I'd pay and get rid of whatever is going to cost you the most in the long run. That $100 you owe to XYZ Labs might be tacking on a monthly surcharge/interest and the $100 bill may end up costing you $130 if you don't pay it off immediately. However, if daycare is charging you to pay monthly, say $50/year, you'd be better off paying that. Always look at the bottom line.

A bill doesn't ever cost $X... it's always $X + $interest. If there is no interest and no fees, get rid of whatever gives you most peace at night.

[OkiMom]

Id pay the bills and get them off your mind. Specially since you mentioned collections.

[zebra15]

BILLS!....if nothing else then you have less folks to pay every month and less folks means less margin for error

[lookatreestar]

i would say pay the school IF the bills were just regular monthly bills or one cc or something. buut since it is medical and you mentioned collections... yeah throw the money at that sucker!!

[cristina47454]

Just so you know...I am still paying on the bills from my 2yo's birth. But I called their billing dept and they put me on a 0% interest payment plan. You might be better off looking into that and keeping your $800 as an emergency fund cushion.

[busymama77]

Originally Posted by OkiMom

Id pay the bills and get them off your mind. Specially since you mentioned collections.

Absolutely. Most bills do accrue interest. I'd be done with them.