When a friend or family member is facing a difficult financial situation, it is sometimes hard to know how to help without creating tension, and without the fear that the relationship will one day sour.
The first step is to talk openly with your loved one about their financial difficulties and the options available to try to resolve them. Choose the right moment to raise the subject, stay listening, and do not judge them.
If you and your loved one agree that your help is the best option, it is important to define clearly the expectations and the terms of that financial help, whether it is a loan or a gift of money. By discussing each person’s expectations from the start, you can avoid misunderstanding or later conflict.
If you are considering a loan, do not hesitate to discuss the terms clearly from the outset. For example, you can talk about a repayment schedule that works for both of you, or about the repayment arrangements that can be put in place. Writing those terms down in a document with a notary makes both of you accountable and ensures they will not be open to argument later.
If you prefer to make a gift, it is also important to define the terms precisely. You can set criteria such as the amount, the timing of the help, or the conditions for using the money.
If your friend or family member would not be able to manage the financial help you provide, we recommend supporting them and pointing them to good practice for managing a budget responsibly.
It is important to keep communication open and honest throughout the process of financial help. Because your aim is to support your loved one and you want to help them resolve their financial difficulties, we recommend setting regular check-ins together. Those conversations let you make sure your help really matches what your loved one expects, and, if needed, to recall the conditions agreed at the start. Check-ins (for example once a month) should sit outside the usual frame of your relationship: avoid raising these subjects at family gatherings or in front of other people, and choose a setting that allows free and sincere conversation.
Which app should you use to support a loved one financially?
Whether it is a loan or a gift of money, a whole range of tools and apps can make money transfers easier. Online money transfer apps such as PayTrip let you send money instantly and at a lower cost. For example, PayTrip lets you send money to your loved ones regularly or when they need it, by giving them Visa cards linked to your PayTrip account. These PayTrip prepaid payment and withdrawal cards are a simple, practical solution for family and friends who do not have a bank account. You can view activity on these cards, block or unblock them, and set personalised alerts. In short, you stay in control of how money is transferred and of how the money you provide to your friend or family member is used.
Supporting a loved one or a friend financially is an act of generosity that reflects your values of solidarity and care. Like PayTrip, many apps and good habits can now help you do this rare and precious thing for someone in need, while still letting the relationship thrive.