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Pros and Cons of Asking Your Family for Money

 

Asking family for money is a touchy issue for most people. It can strengthen family bonds when the money is used to meet an emergency need, but all too often, it can lead to bitterness and contentions. The main reason for this is that too many people take advantage of family members, and rather than work hard, they make foolish money mistakes and expect family members to bail them out. Before you ask family for money, consider these pros and cons:

Pros of Asking Your Family for Money

You should do everything you can to make money from the blood, sweat and tears of your own labors. There are times when financial hardships hit even the most diligent work-at-home moms though, and you may not have much choice but to ask for help. Here are the pros:

  • Family members might give you the money as a gift and not expect it back
  • If you're in a desperate situation and a family member  loans you money, the terms will be more flexible than going to a bank, and they won't charge you high interest rates, if any at all
  • You'll get to share your burdens with your family, which you can't with a bank loan officer
  • Asking family for help is far better than charging your credit cards or taking out a loan

You're not entitled to your money from family members, and you should never have that attitude. It's important to show your gratitude and appreciation if your family gives you money, and approach the subject in humility.

Cons of Asking Your Family for Money

There are probably many more reasons not to ask your family for money, than there are benefits.  You should not owe money to anyone, unless you're financially ruined due to unforeseen medical bills or a catastrophe, not even to family. Here are some reasons why:

  • When you ask your family for money, and they loan it to you, the relationship is changed from to borrower-lender status, which can destroy relationships
  • Late payments or delay in paying the entire amount given in full can lead to fights with those you owe money to
  • It can lead to fights with your spouse because of the stress and pressure to pay family members who lent money
  • The spouse of the family member giving you money may resent them for giving away family cash that could build up their household
  • If you're asking for money for your business when you should be working harder to make sales, you won't succeed as a work-at-home mom
  • Relying on family money to fund your living expenses while you grow a business can lead to complacency and laziness on your part

Be open in your discussions with family about money before you accept a gift or ask for a loan. You might decide that the resulting problems and fights are not worth destroying your relationship.

Weigh the pros and cons of asking family for money before you initiate a discussion. Get your financial house is in order first, and make sure there is no way to meet your financial needs on your own. If you can meet your financial needs by making sacrifices that you don't like, you should do that and avoid asking the family for money.

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Daphne Mallory, Esq. is the co-owner of Mallory Writing Services and has written more than 100 articles helping home based business owners and entrepreneurs start and market their business. You can learn more about her here.

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