How to record gifts without impacting budget reports

Allison's Avatar

Allison

06 Dec, 2017 07:20 PM

My daughter received a cash gift from family for her college savings account. I also transfer $100 monthly from checking to that college savings account. However, when I look at the budget for this year, instead of showing $1,200 spent on her college savings, it shows we are over budget by the amount of the cash gift she received. Evidently the budget report is counting the gift received along with our transfers from checking. I've tried recording the gift as income, as not categorized, even as dividend income and the budget report still includes the money and shows we are over budget.

What am I doing wrong here? The account is set up as a bank account. I'm using version 2017.4 (1624) on a Mac.

  1. 1 Posted by ikcelaks on 31 Jan, 2018 04:26 PM

    ikcelaks's Avatar

    I believe the correct solution is to increase the budget for the college savings for the time-period that the gift occured in.

    Since you chose to make your usual $100 dollar transfer in addition to the $100 gift that month, you DID exceed your planned budget for college savings. Since the $100 dollar gift was also extra unbudgeted income, adding $100 dollars to the college savings budget both reflects reality and makes the rest of the budget balance as before.

    Altering a budget for one budget period and returning to the default afterwards is really common when receiving earmarked gifts.

  2. System closed this discussion on 02 May, 2018 04:30 PM.

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