It is difficult to mix money and family. There may be times when someone in your family is in a tough financial situation and comes to you for help. Or you may simply decide you would like to help without being asked. Or you may be in a situation where you could use some help and one of your family members volunteers to help. The problem is that often loans or gifts come with emotional strings attached and so it can put everyone in an awkward situation. Here are a few guidelines:
1) If you want to loan someone the money that they need, do not loan them the money unless you can afford to give it to them. This way if something happens and they are unable to pay you back, you will not be in a financial mess.
2) If you are given a loan make sure that you pay it back in a timely manner. It is important that you let your family member know that you respect them and are appreciative of their help. The best way to do this is to make consistent payments on the loan.
3) When people lend money or give money to you and then see you be irresponsible, it can be very frustrating. In return if you are the one receiving money, it can be frustrating to feel like someone is watching over your shoulder. Be considerate of the person on the other side of the loan.
4) It is not beneficial for you to continually bail someone out. You may want to make it clear that it is a one time loan for a specific item or reason. Or you may want to give a one time gift along the same lines. You do not want the person you are helping to become financially dependent on you, because when the time comes that you can no longer help, they will be in an even bigger mess.
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