There are times when you may feel that you need to help out other family members financially. This can be a tricky area to go into. It is difficult to give money to someone, and then watch them use it unwisely. Loaning money to someone can also be very difficult, especially if you need the money. Also finances tend to be something that people keep to themselves, so it may be difficult to help them begin to budget or change their habits. Here are four tips when it comes to helping family members with money issues.
1) Never loan someone in your family money. If you can afford to give him money, then give it him outright. If you loan the money and he has trouble repaying it, he may start avoiding you and you may lose a good relationship. If you can not afford to give him the money, then you really can not afford to loan him the money.
2) If you are giving someone the money to help her get out of debt, you may want to insist that she take a class on budgeting or money management. It is best to really not get involved in your personal financial decisions because it can cause rifts in your relationship. You may make a deal that once she completes the class, that you will give her the money outright.
3) Do not offer advice on how to budget, spend or save money, unless it is asked for. It can be very frustrating to feel like someone is constantly looking over your shoulder. The constant nagging will not help your family members to change. They will change their habits when they are ready to.
4) Lead by example. You may talk briefly about a great savings account you have found, or the relief you feel to be completely out of debt. If you do these things, do them in passing, so that they do not seem forced. It is also important to refrain from bragging when you talk about these things. This may make it easier for family members to approach you if they have questions regarding finances.
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