Should I Ask My Parents for Money?
Most of us have times when extra money would lessen life’s struggles. Asking your parent for money is a reasonable question to ponder.
Let us walk through the things you should consider or uncover while contemplating a request for money from a parent.
1. How much money do your parents have?
Make sure that you know what your parents have before an ask. You do realize that it is hard for a parent to say no and many a parent will give more than they should placing their own future at risk.
2. Will a loan or gift to you jeopardize their care or day-to-day lifestyle needs now and into the future?
One of my favorite sayings is "the greatest gift you can give your children is your financial independence."
3. Examining the cost of their potential care needs is prudent.
The US average cost for a nursing home is $91,000, assisted living $43,000, and home health $45,000, all annual figures. Of course, this varies by region, State, and facility, as well as the amount of service needed in the home. A quick search of the internet will provide you greater detail.
4. Examine why you need the money.
Is it to satisfy a need or a want? A need is food, basic shelter, and other things necessary to survival. A want is almost everything else.
5. Consider your siblings.
Most parents want to be equal when distributing their assets. Ask yourself; are they able to distribute equal amounts? Are you willing to put your loan or distribution in writing to be fair to siblings after your parents’ death?
6. Talk to your siblings about your considered request before you ask your parent for money.
Misconceptions cause many a family feud in this world, and it usually is related to a lack of knowledge and understanding. While it is technically, “none of their business,” care for and of your parents is their business, and money often times factors in.
7. Reduce any loan to writing with a set repayment schedule. STICK TO IT!
You are not entitled to your parent’s money, and if they give you a loan, a loan it is.
8. Do not ask for a loan if you have no intention of repaying your parents, just ask for a gift.
Over many years, I have witnessed quite a few families argue, with money often being at the heart of their disputes. Do your absolute best to avoid the money pitfalls if you can. It will make your life a lot simpler.
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