In Poor Richard’s Almanac, Benjamin Franklin said, “Neither a borrower nor lender be.” A recent study published in the Journal of Economic Psychology lends statistical credence to Franklin’s advice. Loans to friends and family may end up causing a rift in the relationship. While it may be hard to say “no” to family or friends when they ask for a loan, it may be the best answer to give if you are dipping into your own emergency monies. Think through the consequences of lending money. Write down the terms. Be sure you will not be hurt, either emotionally or financially, if the borrower does not pay you back.
Read the rest of the article here: How to Handle Family, Friends’ Requests for Money