re: My brother demanded I offer step niece $1000 for all As

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Or more likely, force the kid to buy for herself things that would otherwise be provided.

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Exactly. Mom isn’t going to sit around being broke while daughter spends a thousand in cash on shite she wants that mom can’t afford. Don’t inject a large sum of cash into a situation where money is tight unless you are prepared to deal with the fallout. Also, don’t begrudgingly give the niece money as a gift. A gift should come from the heart because it’s something you want to do, not because you were guilted into it.