I agree with you Tofu - she should have given it back. If I were in a situation where someone gave me money for a particular expense I had discussed with them, and that expense was suddenly no longer an issue (for whatever reason) I would not then think "oh well, I'll spend the money on something else". And, I especially wouldn't contact the person, say I would be giving it back, and then go and spend it on something else.
I don't think this money is technically classed as a "gift"...it is money for a particular expenditure only. And at the time it was given it sounds like it was something they could afford, but then through the reasons explained in the OP, money was tight a few weeks later and that money would have been useful.
Just my 2 cents worth![]()







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