Setting expectations important when lending money to loved ones Dec 10th

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When a friend or family member asks for money, several thoughts might cross your mind, including whether or not it’s a good idea in the first place. Lending money to close friends or family can be a risky affair. There are chances you may not see that money again, and even worse, it could sour your relationship. Experts say loaning money to your loved ones isn’t as simple as a yes or no answer but a decision that heavily depends on context.

When you should say no to lending

If loaning money is going to set you behind, the answer should be a straight no, said Cindy Marques, certified financial planner and CEO of MakeCents. That’s because you may not be able to recoup the money, she said. “It’s fair to step in with the assumption that you may not get this money back,” she said. “If you can’t afford to not receive this money back, then you absolutely should not be lending the money.”

Refusing to lend is not selfish if it’s going to be to your detriment, Marques said…

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