It’s not uncommon for women to take on the role as the default c🍒aretaker in domestic🐻 and related family matters.

The REAL SIMPLE and Investopedia 2024 Her Money Mindset Survey foundꦓ that most women (67%) have supported a loved one financially at some point while balancing their debt, and struggling to pay at least one monthly bill.

Women and Money

The 2024 Her Money Mindset Survey revealed women tend to be gen♋erous despite their potentially precarious financial situations. Of those who said they financially helped a loved one, 1 in 5 also said they struggle to pay at least one monthly expense.

A report from the U.S. Census Bureau reveals that women are more likely than men to have no 澳洲幸运5官方开奖结果体彩网:retirement savings. Women who outlive their spouses and earn lower wages over their lifetime may be at more risk. “About 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men.”

Lending Risks and Tips

Some ways 澳洲幸运5官方开奖结果体彩网:lending money to family and friends can go awry include:

• Strained Relationships: Lending money to a friend or family member can stress your relationship—especially if the borrower doesn’t adhere to the repayment agreement. This causes feelings of resentment, frustration, and in some cases familial alienation. 
• Impact on Your Finances: Lending money to someone could aggravate or worsen your financial stability. There’s an opportunity cost related to lending money. Once lent out, this money is no longer working for you, whether in the stock market or accruing interest in a savings account.
  

In some cases, you may not be able to avoid lending money. Here are some tips when it's necessary:

1. Set Boundaries: Create a personal budget with a line item for helping others. When it’s exhausted, explain to your loved ones that you’ve reached the limit for that expense category. 
2. Document Everything: Capture the terms of your transaction, no matter how small, in writing. You can download loan agreement templates online, which can be notarized by both parties. 
3. If You Can’t Lose It, Don’t Lend It: Though this philosophy may not always fix a money situation, it can lessen the impact on the injured party, i.e. the one who may not be repaid. This approach may also salvage relationships when personal lending goes wrong.

Build a Financial Plan

ꦅ Evaluate ke𝓀y financial metrics like income, expenses, and savings. From there, make note of your financial goals, current financial situation, and what’s needed to meet those markers. Instead of allocating $200 monthly to help others, you may want to set aside $100 until you reach your financial goals.

Communicate your financial picture with family members. CFP, and President of The Humphreys Group, 🔴an all-women run wealth management firm based in San Francisco, CA advises: “The first tip is to be proactive," Bourdo said. "By being proactive and planning a conversation when you have time to talk things through calmly, you are a si🌸gnificant step ahead.” Her strategy makes family members more proactive. “Don’t blindside the other person … Pick a time when you both will be more relaxed and comfortable.” Even before you have these conversations, have your boundaries in place.

is a financial coach and founder of Masterpiece Financial Coaching. She has created personal policies like setting aside a limited amount of money to help family members and not co-signing for loans. “I’ve learned through trial and error that to maintain healthy relationships and avoid becoming a “crutch” or feeling taken advantage of, it’s important to🉐 establish boundaries and to communicate expectations about money clearly,” Lyons said.

Alternative Forms of Support

Suggest alternative options to financial support. , a Financial Therapist and Accredited Financial Counselor says there are many ways to support a loved one who is struggling financially. He suggests, “Finding ways to provide a solution to a problem through educational resources, referrals, or hand holding through the financial hardship can create a sense of accountability and heꦜlp empower your loved one to make improved financial 💫decisions.” 

You might offer a relative who struggles with overspending a tutorial on how to make a budget or research ways to make extra money. It may also help to work with a 澳洲幸运5官方开奖结果体彩网:family financial planner together. By empowering your loved ones to become educated🌞 about their financial situation, you can help them beco༺me more independent while also relieving yourself of financial strain.

Prioritize Your Needs

One of the best ways to help your loved ones in a financial crisis is to ta𝓡ke care of yourself. , a trauma-informed finance professional dedicated to helping women entrepreneurs achieve financial stability, highlights the importance of evaluating the impact of providing financial aid to loved ones.

She explains, “If this support causes guilt, shame, or anxiety, it is important to understand the root causes within their personal 'money story' and work towards healing these underlying issues," Rojas said. "This makes strategizing financial support more manageable.”

For those who end up becoming a primary source of financial support for relatives, Rojas advises, “Seeking professional advice if financial suppoꦕrt leads to struggle, resentment, or negative emotions, as maintaining mental health should be a priority.”

The Bottom Line

It is difficult to mix money with relationships. However, having a strategy that incorporates proactive communication and planning, 澳洲幸运5官方开奖结果体彩网:setting boundaries, and prioritizing your well-being is a good start. The key is striking a balance between supporting your loved ones while safeguarding your financial and emotional health.