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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 3 of 11)
9-21-2010 @ 10:40PM
SmarterThanU2 said...Retirement is BS. Family is LOVE. Help your kids with every last penny before its too late. My uncle died last year, and his kids (my cousins) did not even know he was sick --- because he never gave them anything (including love) - so he died with a second wife who could not have had him cremated fast enough. Not much of a retirement - eh?
9-22-2010 @ 10:51PM
gayle said...Its hard to believe a child has to ask, in this case sounds as if she is spoiled and don't want to give up what isn't needed,
My sister was layed off, in the process of losing her home and
Her husband of 12 years he wanted a divorce,She sold everything possible to pay the bills,
She wouldn't ask for help,cause she could only find jobs that paid minium wage.and she didn't no how she would pay anyone back.
We would of taken out a loan for her if we knew,how bad it was.
She took her life in June this year, cause she worked so hard for many years.
She turned 50 in Oct 2010,she said her life was over no husband no home no life,,, We would have givin her everything,
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9-21-2010 @ 9:43PM
Amaya said...I'm sorry Gayle,
I read the pain in your comment and felt very sad for you...your sister relied too heavily on the notion that life revolved around the outside things in her life, instead of just the smaller beautiful things like the sunshine on your face.
...tomorrow is ALWAYS another day, ALWAYS another moment to appreciate life in and of itself.
She lost sight of that.
Life isn't easy, I look back often and try to find good in my life...I have to, if I focused on how many negatives there were I'd lose myself.
We grow up expecting that we'll have love, a wedding, a family, a home...but oftentimes those things don't turn out even close to what our ideals were, life isn't a blueprint I've learned. : P
Sometimes you just improvise...and when you start to feel sad, you go outside and find something beautiful to appreciate.
I wish your sister had understood that. : (
9-21-2010 @ 9:42PM
ker said...Gayle, I am so sorry your sister felt such desperation. It is tragic and wrong that good paying jobs that provide a living wage are drying up in this country. Minimum wage won't support a substandard apartment, let alone a modest home.
A person is worth more than their income, more than the accumulation of "stuff" they surround themselves with.
I am truly sorry for your loss.
If other people have family members who are struggling, don't wait for the phone call saying I need help. I'm not suggesting you hand over endless loans, or even money. But groceries or a casserole can say so much.
We had a young member of the family who had a hard time getting a job after college, and wound up underemployed in retail. They had a little apartment, and we knew they couldn't be making much money- but hey they were just starting out. No body starts out in the lap of luxury.
One day I was visiting and reached in the fridge for some milk, and found the carton was empty. As was the Oj carton, the butter tub, etc etc. The "kid" was mortified to admit they were having a hard time paying for food, with something like $60 a month left after paying rent, utilities and the very bare basics. The cartons and jars were "for show" so others wouldn't know how bad it was and so they wouldn't feel so poor when looking in the fridge.
We had no IDEA! Needless to say, We started inviting them over for dinners more often, and sent them home with ample leftovers, as well as running into situations like " I bought this and that at costco and can't possibly use them all, maybe you could take some off my hands" etc.
If you see someone struggling, don't wait for the SOS.
Gayle, I am truly sorry for your loss.
9-21-2010 @ 9:43PM
SmarterThanU2 said...So sad. Money does NOT seem so important at this point. Happiness is Found Along the Way, NOT at the end of the Road. Show your love and interest in your family, because that's all that will ever matter. Times are tough, and they will only get tougher for everyone. Share your time and ALL your money with your family !!! Retirement will be lonely with no one to share it with!!!
9-22-2010 @ 9:50PM
LAKAT said...Apparently you wouldn't have given her everything, you said you would have gotten her a loan. How would that have helped when she knew she couldn't pay it back and would just be in more trouble? Maybe she didn't ask for help because she knew what she would hear in return. I can imagine you and your family feel guilty but perhaps that's appropriate. I hope you find peace.
9-21-2010 @ 9:53PM
GRACE2STAND said...Gayle, I'm so sorry for your loss. Please don't feel guilty. If you loved her so much that you would have given anything to help her, surely she realized that. If she didn't, that wasn't your fault, either.
When people marry, their original family simply doesn't have enough influence to overcome the influence of their spouse.
Just do your best to show your remaining family how much you love them, and do your best to be happy. Surely that's what she would want for you.
9-21-2010 @ 8:30PM
mike said...she's a genius
you're a sap
stop, stop now
your daughter is not a nice person
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9-21-2010 @ 8:34PM
Jennifer said...The writer does not say if daughter and son are working at all, but this could also be a symptom of drug/alcohol abuse or gambling addiction. Along with not lending any more money, I would ask outright: are you on drugs? are you gambling? And then watch the way their eyes move (down/left or up/right); see if they get defensive, and then try to get them help.
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9-21-2010 @ 8:35PM
deb said...well i am 42 years old and when i ask my mom and dad for a loan,,i pay them back plus more for waiting ,,i have never ask for much less then a $100,00,,but when i was bringing up my two girls by myself,,i have always told them never to ask for to much,,because mommy cant aways give it,,, you know now since my girls are now in their 20;s they have never ask me for a dime yet,,,,i have been saving it up for a long time,,and now i have 3 grandbabyes and i spend it on them,,
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9-21-2010 @ 8:37PM
Robert said...The kids will leave you bankrupt and never think twice about it. Thats what you get for getting them out of every jam there whole life long. They know you will bail them out. I never asked my parents for a dime and even helped them out. wheneve i could. Let the kids get themselves out just like you did. ALL THEY ARE IS MOOCHES. I think we can ALL agree on that.
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9-21-2010 @ 8:40PM
geomcd said...What about the word, NO!............very effective!
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9-21-2010 @ 8:40PM
threehawkes said...II have been married to my second wife for 26 years and her oldest from the start thought he was intitled in life because she babied him. Now he is a thief in our house stealing his mothers meds and she says forgive him... Bullshit!! I am tired of him living off us and trieing to keep peace in the house.I love my wife wife but she needs to WAKE UP and see the haem her son is doing to all of us. I want him gone ftom our life. but she continues to support him. it is coming to the point where i am going yo leave for both of their wake up call.
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9-21-2010 @ 8:41PM
Charles said...I am all for helping your children in emergency situations ... but with all due respect ... mom, you are an IDIOT! I'm sure that you did not FORCE her into getting so deep in debt so why should you give her money to bail her out of a bad choice? You should not have indulged your daughter all these years because it sounds like she does not know about living within ones means. Tell her the Bank of Mom is CLOSED!!! She needs to sink or swim on her own merits!
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9-21-2010 @ 8:42PM
kenny said...GEEZE, try rehab , if not for drug habit then money managment= the same place Obama needs to go
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9-21-2010 @ 8:42PM
susicyq said...It is so simple.JUST SAY NO!
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9-21-2010 @ 8:45PM
Gc said...Two of three of our adult kids have "borrowed" money from us to the point that we went through all of our retirement savings, declared bankruptcy and now were in foreclosure. I can't tell you the last time I slept through the night. We are now living off Social Security and my husband's small job. If you don't want this to happen to you, learn to say "No" now or be prepared for nothing but grief and heartache.
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9-21-2010 @ 8:44PM
Ash said...I borrowed from my Mom from time to time until she died two yrs ago. I am not making it on my own and I have cut back on everything. I am ready to kill myself from lack of hunger. I am job seeking, going on interviews, tried applying for Welfare, everything. If she needs help and you have it help her out! What good is a big bank account when you die???
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9-21-2010 @ 10:37PM
Mel said...Hey Ash.....try getting your butt OFF the computer. Newspapers are cheaper and have a little thing called the Classifieds. Funny when I couldn't afford internet and cable and home/cell phone....I did without. If you can't buy groceries you don't need luxuries. I bet you are a smoker too.
9-21-2010 @ 8:45PM
Joella said...Why is it that the person having to say "No" is always made to feel guilty? You have tiptoe around the borrowers feelings.
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