Things to Consider When Helping Family Members with Financial Needs

During times of hardship, one of the first places many people turn for help is family. Often people fall into financial difficulties if they experience the sudden loss of a job or are impacted by expensive medical bills. Many well-meaning family members have found themselves sucked into the financial abyss by the problems of a loved one.

So it is not uncommon for family members to make financial requests. However, helping a loved one struggling with financial problems can be tricky territory. Some times, it is better not to just throw money at the problem, even if you can afford to help. Read on for guide from francais casinos en ligne.

Don’t give money that you want back

It is strongly advised not to bail out your friend or family member, especially if it’s money you need or want back. Imagine your frustration when your brother shows up with a tan from a recent vacation, or your sibling splurges on a new car when he still hasn’t paid back your loan. If you do decide to give a one-time gift (not a loan), consider offering to pay their electric bill or mortgage bill for a month or two instead of giving cash, which can all too easily be squandered.

Set terms

To encourage behavior modification, you may also want to make your gift conditional, especially if your friend or family member is a repeat financial offender. For example, indicate that you are willing to help with a one-time gift only if they complete a financial counseling course, demonstrate an understanding of wants versus needs, or agree to check in with you monthly to ensure that their saving and spending plan remains on track.

Evaluate your relationship with the family member

Here’s a good rule of thumb. The younger you are in relationship to the person with the money problem the less direct you should be. For example, if your parents have money problems they confronting them face to face is likely not going to be the best approach. In the case of parents, you should deal with them indirectly or serve as an intermediary to help them, courtesy of best USA real money casinos.

Set them up to succeed

The first step to a successful intervention is to help your friend or family member set small, achievable goals that start to change their money mindset. Don’t expect them to establish a budget, pay off debt, and increase their retirement savings all at once.

Proceed with caution

When you lend money to someone your relationship with them automatically changes. You must have guidelines when lending to friends and family.

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