They turned the house upside down searching for money only to find it in the paper shredder bin!
The couple contacted the U.S. Treasury Department and may be able to get some or all of their money back, but later rather than sooner.
Jackee and Ben Belnap had managed to save $1,060, carefully tucked into an envelope that they were going to send to Ben's parents to repay them for the cost of season tickets to root on their favorite college football team.
Leo Belnap, a 2-year-old boy in Holladay, Utah, loves putting junk mail and other paper in the shredder that he sometimes helps his mom with.
They finally hit their target last week - but when the couple went to dig out the envelope, were horrified to discover what had happened to it. His parents believe he used his near-professional level shredding skills on the envelope containing their hard-earned cash when they weren't paying close enough attention.
Even so, Leo is now banned from using the shredder for the time being, the Belnaps told KTVX. She was holding the shredder.
"We just, for like five minutes, we just shuffled through it, not talking".
"As devastated and as sick as we were, this was one of those moments where you just have to laugh", Ms Belnap told USA television station KRON4.
"As devastated and as sick as we were, this was one of those moments where you just have to laugh", Jackee Belnap told KTVX-TV. The couple saved for a year to pay back a family member for University of Utah football season tickets.
It turns out the couple might not be out all that money.
Luckily for the Belnaps, there is a government office that helps those with destroyed cash.
The currency "must be forwarded to the Bureau of Engraving and Printing for examination by trained experts before any redemption is made", the website says.