What would you do?

My husband, our 7 month old and I currently live at my mother-in-law’s while we find a place to live around this area. We pay her rent every month. We are moving at the beginning of next month, so I know my situation won’t last much longer. But what would you do if you found out all the rent you pay doesn’t go towards the bills? My MIL is always telling me how she can’t afford her bills, she doesn’t know how she’ll pay the mortgage this month and she’ll probably lose the house, how she’s behind on the electricity bill, water bill, etc. Every time we’re in the same room together she mentions all of this. And I’ve always wondered how she is struggling SO bad when we pay a good amount of rent. Between the money we give her and her working her usual full time job, I’m not sure how she can no longer afford anything. So about a week ago she was asking my husband for help because it looked like she had a charge on her bank statement that she doesn’t recall doing herself. As he’s going over her statement with her, he sees that she deposited our venmo for rent. And the following charges were from several liquor stores, kohl’s, Amazon, target, restaurants, etc. Which by the end of the statement showed she had spent all the money we gave her for rent. He didn’t mention anything, just continued helping her and turned out the charge she was confused about was her after all. So my question is, would you be bothered by this? That she’s using the money we give her for rent for everything but rent? And then mentioning daily that she can’t afford her bills? Isn’t that wrong to do with her infant grandson living here? I’m trying to think of it that once we give her the money, it’s hers to spend however she chooses. Because either way we do owe money for living in her house. But it’s truly bugging me that she’s spending it on herself and then saying we won’t have hot water for a while because she can’t afford it or how she’s going to lose the house since she can’t pay the mortgage. With a baby living here?? I just don’t get it. At least we’re moving next month but that sickens me.