Almost everyone has helped their close ones financially at some point, whether by giving a check to a family member unable to pay rent or lending a large sum of money to a friend. However, the decision to lend money to loved ones can often be challenging, as repeated requests and delays in repayment can jeopardize both relationships and finances. This article explores the complexities of such scenarios and provides tips for maintaining both financial safety and personal connections.

Research reveals that a significant number of people turn to friends or relatives for financial assistance when faced with unexpected expenses, second only to the use of credit cards. This tendency has been exacerbated during the pandemic, as many have found themselves in dire financial situations and reliant on close networks for support. However, the emotional and relational stakes involved in financially supporting friends and family can create tension and discomfort.

The article outlines practical tips for lending money safely, emphasizing the importance of having a clear plan and setting boundaries. It advises readers to consider various aspects, such as the borrower’s reliability and the potential impact on their relationship, before agreeing to lend money. By adopting these strategies, individuals can protect their finances while still providing help to those in need.