Possessing the ability to help your family financially can be one of the biggest blessings that comes along with building your personal wealth. Unfortunately, it can also be one of the biggest curses. On one hand — who doesn’t love seeing the ones they love achieve their dreams, and who wouldn’t jump at a chance to help out? On the other hand — some may take advantage of generosity, leaving you wondering about the sincerity of your relationship. In some extreme cases, you may even worry that you could be enabling destructive behavior.
In the end, the rules of helping your family financially are not set in stone, and it is up to you to decide if, when, and how much support to lend. However, for those who are feeling confused or conflicted, we have compiled a brief list of dos and don’ts that you may find helpful.
• Don’t cross boundaries. Generally speaking, you probably shouldn’t offer help out of the blue, and you should be tactful about how you go about offering help. Many people take pride in making it on their own, and just because you feel that your family member could use a helping hand doesn’t mean that they feel the same. If your family member directly asks for help, or if they open up and speak with you about personal finances, on the other hand, this may be a good opportunity to approach the subject.
• Don’t enable. A family member who clearly has a problem with addiction, be it to drugs, alcohol, gambling, shopping, etc. would probably benefit more from a different kind of intervention.
• Do consider alternatives to loans and gifts. Unfortunately, many components of financial literacy are not taught in school. In some circumstances, your knowledge may be the best gift you can offer — and it is also one of the most affordable and least intrusive ways to help. Assisting a family member with setting a budget, filing for a grant or scholarship, or offering to be a guarantor for a lease are all great ways of offering second-hand help.
For your own sake and for your family’s, building financial security is simply the responsible thing to do. Visit Red Rock Secured online today to learn more about how you can build your personal wealth.
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