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Should I Keep Loaning Money to My Adult Daughter?
Filed under: Relatives, Empty Nest, Relationships, Expert Advice: Just For You, Expert Advice: Family Time, Expert Advice: Home Base
Dear AdviceMama,
I've loaned $5,000 to my grown daughter (she's in her 40s). She has also borrowed money from her sister and stepmother in the last year and a half. She has two homes, one that she and her family live in and a vacation home in the mountains. They had their motor home repossessed and are having a hard time making car and mortgage payments. I am about to retire and I really don't want to give them what I have saved towards retirement. Also, I think it wouldn't solve the problem -- it would just be a temporary fix. Of course, she's not too happy with me right now (she has hinted at needing another loan) and I feel bad. Thanks for your input.
Signed,
Reluctant ATM
Dear Reluctant ATM,
I'm sure you've heard this many times, but it's true: Don't lend money to relatives unless you're in a position to part with it forever. While I'm sure there are exceptions, I can't count the number of conflicts I've seen between family members over borrowing -- and repaying -- money. The loaner says, "You told me you'd repay me in February and it's August!" while their adult son replies, "Well you obviously you don't care about your whether your granddaughter gets to go to preschool!" And on it goes ...
No doubt your daughter intended to repay your $5,000, but if she's in over her head -- which sounds like the case -- you are definitely going to be at the end of the line when it comes to how she pays off her financial obligations.
Given the fact that you're about to retire, I wholeheartedly support you in deciding not to loan your daughter more money. You deserve to benefit from what you have worked hard to put away for the coming years so you can take care of yourself.
And I agree that simply handing over more money will not solve your daughter's problems. It could even prolong them by postponing the inevitable time when she and her husband take stock of their assets and liabilities and start living within their actual income.
But keep in mind that there's a delicate and indelicate way of letting your daughter know that she cannot expect more bailouts from you. Avoid lecturing her about how she has handled her money. Your harsh words will only further alienate and upset her.
Instead, empathize with her situation, and acknowledge how stressful it's been for her as she's tried to juggle everything on her financial plate. Tell her you're there to support her (emotionally) as she tries to sort out her financial challenges, but don't tell her what to do unless she asks for your advice! Be careful to avoid coming across as judgmental. Saying things like, "You shouldn't have bought that vacation house!" is not going to be helpful, and will only create more tension between the two of you.
If your daughter asks for more money, gently tell her, "I'm afraid that won't work for me, sweetheart." Then give her the room to express her disappointment without defending your position. Once she clearly knows what she can -- and can't -- expect from those who have been helping her financially, she'll be able to make decisions about how to get out from under her debt.
This doesn't mean you can't surprise your daughter or grandkids with an occasional check or bag of groceries. But let that be something you choose to do, based on your financial situation.
Yours in parenting support,
AdviceMama
AdviceMama, Susan Stiffelman, is a licensed and practicing psychotherapist and marriage and family therapist. She holds a Bachelor of Arts in developmental psychology and a Master of Arts in clinical psychology. Her book, Parenting Without Power Struggles, is available on Amazon. Sign up to get Susan's free parenting newsletter.
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ReaderComments (Page 2 of 11)
9-22-2010 @ 2:07AM
Craig said...Are you prepared for life? Your grammar and spelling are atrocious!
Have you also not learned of spell checking?
9-23-2010 @ 11:32PM
Carolyn said...You can repair them for life but they still want to come back for more. I also have a 35 year old that I have bailed out for the last time. I am totally disable and wish I could work. The more you give them the more they think they can give you the same old story "I will be on the streets". Well get out there and get a job. I don't care if you have to scrub toilets. That is want is wrong with these young adults and older ones. Once you start bailing them out it seems like you just keep doing it and they are sitting on there butts while you feel quilty. No more. My bank is closed. I don't mind letting them eat with us some of the time but not every day. It's time that they take on the responisable of being adults because I assure you if you need them to do something for you it will be a cold day in hell before they do it because they always have excuse after excuse. So it's tough love from here on out. I need my money for myself. Who is going to take care of me if something happens to my husband not my kids, grand kids or great grandkids.
9-21-2010 @ 8:14PM
mike said...How do you tell her no? it's easy just say no, no more money, your mistake was ever loaning/giving/money to a grown child outside of the home, after my 2 left my house for college, they were on their own, no more room to come back to, no more money, no baby sitting on demand, they are adults they need to act it, my wife and i never took 1 cent from either side of the family, not even at our marriage 35 yrs ago, never not a cent, and it would have been easy to get it , but we said were adults we cant do it,,
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9-21-2010 @ 8:43PM
Brandon said...Right now I am a Junior in College and I know how hard it is to keep up with a budget, scholarships, classes, and loans as it is with the help of my parents, do you really think after senior year in highschool, 18 year olds are prepared to go to college and then "not have a room to go back to"? How are they doing now? I could really use the advice.
9-22-2010 @ 1:54AM
Bill said...Tell her no like you mean it. Like im not a bank do what you can to survive.
9-21-2010 @ 8:19PM
Rebecca said...It may sound silly but i don't even lend money to my son, starting when he was about eight and starting to get regular allowance money. He never seemed to worry about paying it back quickly and argued about what i felt should be done to work it off. I simply tell him that i won't lend him money, if he can't save it and have it when he needs it, then too bad. It may sound heartless, and sometimes if he needs a dollar or something i'll say yes but he has to come straight home and work it off THAT day, but i feel we should not teach our kids to live on the mentality of credit cards and being in debt. The likelihood of us ever being in a situation like this is slim to none because he is learning every day to live with what he's got and not to borrow!!
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9-22-2010 @ 4:31AM
azgirlinwov said...If the $ if for an addiction- say no. If she's going through tough times and you have the $- give it to her. I cannot believe how many people I was generous to in life who turned on me like turning on a dime.
Treat your friends the same way. NO LOANS. If someone is going through a hard time- give it to them IF you have enough to start off with.
9-21-2010 @ 8:18PM
Horst Roschmann said...I have a 53 year old lady riend who has been suported by her parents since she went to college back in 1975. Although she has 2 degrees she never, ever worked. When I confronted her several times by saying "you live off your parents" she replied " they love me". She believes she is a writer and seriously believes that eventually (has been "working"on that book for some 25 years) she will sell it and make lots of money. There are other indications which to me make it very clear that she needs help which I suggested to her but she is very much in denial. How can one help such a person?
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9-21-2010 @ 9:19PM
Noreen said...YOU CAN'T...she will just find someone else to take care of her so she doesn't have to work if her parents ever stop. They are enablers and they need to stop. What will happen to her when they die? Begin reading my first line again....
9-21-2010 @ 9:39PM
pam dixon said...must be a liberal
9-21-2010 @ 10:20PM
maxie said...Mr. Roschmann, you are making the situation worse. This is her problem not yours. Run as fast as you can. She needs to grow up. She needs professional help.
9-22-2010 @ 1:32AM
Antoinette said...Good evening, I am 48 years of age have1 grandchild age one an one on the way. I have 3 young adult kids 30,22,20. an married for 13 years now. I have borrowed from my MOM since I can remember I recently had contributed to my mom's debt an she filed for a BK. I feel bad an stressed out. every time u borrow u think u have a way to see it ALL through an u fall back short even more now u owe that an need to borrow more it does not stop till u say ENOUGH IS ENOUGH!!!! Every time we need help we have no others on his side or some what mines. I try an contribute by over extending help to her house hold repairs ,etc. I owe around 100,000 an recently borrowed 2,000 wow.( God give me strength to meet this goal). My mom is 68 an has a sickly husband. Please all that can read an identify STOP! STOP! when u start depending on a helpful hand u unconciously continue to ask. An if it is MOM one out of ten they struggle to help u any way. It is eating me up I can't get my business off the ground hell I'm so confussed on what bus will become successful I just have began to go into depression. My husband struggles working 12 hours on his job making less due to a lay off from his original job in the railroad. We both out of guilt have bent over tired helping out with my mom to take on her issues of labor around her home etc. I'm tired now an pray every day for a break through to give her ever penny an some. I also have tried to employ my self for over a year plus no responses. Being with out sucks but seeing your parents with out from helping u sucks even HARDER.
9-26-2010 @ 11:05PM
Dennis said...Simple, say no. She is 40, she can get a J O B. I have a daughter also, and she is able to make her own money. I work for mine, and the stuff I have, you have a retirement to look forward to, you already raised her.Let her sink or swim
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9-21-2010 @ 8:23PM
thomas said...did i read something about a *** vacation home *** what is that ??well duh we have not hade a vacation in about 4 years, and will be lucky if get another one any time soon...wake up lady almost 20 precent unemployment people losing their ONE home ...must be rought....quit being a mouncher....we just send both our daughters to college one working on phd and the other started on masters, you know what we did not complain one bit nor did we go to our parents for money..we handled it ..sure wish i had a *** vacation home ** i could have sold , , or parents who offered to help...look lady BANK is closed..get a like your parents raised you so move along....nuff said
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9-21-2010 @ 9:53PM
Lisa said...I am with thomas all the way. We have children ages 33, 29 and 13. Several years ago we were getting our older children out of "rent" problems and you name it. Then found out about frivilous spending. These kids are educated and they have a 13 yr old sister that needs our attention now. We did tell them this "bank is closed". They were not happy. Our oldest speaks to us through his younger sibling. That's tough love. Our parents did it to us and we did all right.
9-21-2010 @ 8:27PM
Sharon Goff said...I have an easier and shorter way. Honey, I'm sorry but, I don't have the money to loan you. I will be happy to sit down and work out a budget for you.
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9-21-2010 @ 8:25PM
BOOWAH said...My Grandfather was approached by my uncle (his eldest child) for money to buy a car. My Grandfather refused because he had only Social Security to keep him and my Grandmother going . Besides, he was about to go in the hospital for eye surgery and wasn't certain how much his insurance would cover. After my Grandmother died, he was left totally alone in the house. His eldest child lived just down the block from the old man and refused to have anything to do with him because of the refused loan request. He was found dead on his couch several years later. My uncle didn't even attend the funeral! If there's a hereafter, maybe my Grandfather can refuse to acknowledge him before God!
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9-21-2010 @ 10:21PM
SmarterThanU2 said...Guess he should have helped out with the car, as he would have had a ride to the hospital? Love your family and share your wealth with your kids before you die !!! I'm certain Grudges are not allowed in Heaven, just Regrets. PEACE is LOVE.
9-22-2010 @ 7:40PM
carol unser said...SmarterthanU2, you are obviously one selfish person.
You say parents should share their wealth? SOOOO, should the elderly guy have gone without medicine in order to give his nephew a car loan?
You have absolutely no idea about life at all. It's one thing if parents are rich, but do you realize the the parents have to pay taxes, heat and electricity, food, medicare premiums (required BY LAW), homeowners insurance, car maintenance, gas, and insurance, and those are the absolute basic needs and you need to grow up and learn that Social Security does NOT, and I repeat does NOT cover the ABSOLUTE BASIC NEEDS of the elderly.
You say that if the old man gave money to his nephew for a car, the nephew would have a car to get to the hospital to see him. Well, uh, for your information, the elderly guy probably needed his money in order to put gas in his own car in order to go to his doctors appointment.
You ARE a selfish, pathetic excuse for a human being, expecting that the elderly must keep supporting their lazy kids
9-21-2010 @ 8:29PM
David Huntington said...My response would be 'My retirement is more important to me than your vacation home.' End of discussion.
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