Should You Lend Money to Family Members?


Bangalore: Are you planning to borrow money from family members or friends? Beware, as it could possibly destroy your relationships. Today more and more families are coming under financial pressure, which is giving rise to a dilemma whether to help or not. 10 percent of generation X-ers provide financial support to their parents or in-laws, according to Fidelity.

U.S.News & World Report has come up with few strategies when it comes to cross-generational lending.

Initially Decide if the Help is Affordable

A survey undertaken by Ameriprise Financial states that half of the people who lend money to are in 60s. It says that most of them don't realize that the help which they provide is actually cutting their own savings after retirement. People in their mid 60s feel that the money which they gave their adult children has affected their retirement savings negatively, but most of them are unaware about the impact.