Ask These Questions Before Lending to Loved Ones
If you are a parent, you might have seen your adult child struggle with finances. You have likely seen friends experiencing similar challenges. Should you step in and help? In a radio interview on KBEM-FM’s “Daily Living” segment, Mary Ellen Kaluza at LSS Financial Counseling advises that you ask several questions before lending to loved ones.
It is very common for parents to be generous in their financial support for adult children. “Too many parents have sacrificed their own financial security for their adult children,” Mary Ellen states. There are many reasons it is difficult to say no to a request for money from someone you care about, she says, including guilt or the fear of being judged as a bad parent.
But before deciding whether to help, “the first thing you want to do is assess your own financial situation,” Mary Ellen advises, to see if your support for a loved one will put you in a precarious position, too. If you do decide to help, “Be very clear about the expectations of the assistance. Is there a repayment plan, for example?”
Listen to the entire interview with Mary Ellen on KBEM’s Daily Living webpage.
If you are having difficult conversations about money with loved ones or you are facing financial challenges yourself, LSS Financial Counseling is here to provide you with free, confidential support. Call 888.577.2227 to talk with one of our experienced counselors, or get all your support online.
Author Mary Ellen Kaluza is a Certified Financial Counselor for LSS Financial Counseling.