Think carefully before you lend money to your family

Dear Dave,

Do you have any guidelines for giving when it comes to helping family members?

My wife and I are both 52 years old, have no debt, and have savings and about $ 750,000 in retirement.

We agree with you that it’s a bad idea to lend money to loved ones, but we were hoping you could give us some more advice.

– Samuel

Dear Samuel,

I love that you have a helping and generous heart towards your family. Wanting to help is a noble and benevolent thing. Wanting to best help all those concerned as a sign of maturity and wisdom.

The most important thing is to make sure that you are helping someone get back on their feet and make positive changes in their life.

You are not helping anyone when you are giving a drink to a drunkard, so you have to ask yourself if your generosity is really helping them or if you are just promoting bad behavior.

Plus, you can’t give in to a point where you put your own household in jeopardy. You should also continue to be responsible for your finances when it comes to your own family.

This isn’t about being a control freak, Samuel. It is about using the resources God has given you in a wise and responsible way.

In human terms, that means helping someone out of a mess they’re in, while also making sure they’re working to make sure they’re out of it!

-Dave

Troy M. Hoffman