So, if you’ve recently found yourself in a situation where someone you care about has asked for help with money, you’re not alone. You’re also in the right place.
“25.6 million people, or more than 10 percent of U.S. adults, had to rely on their support network for financial backing in 2022, up from 19.1 million a year before.” according to the Census Bureau’s Household Pulse Survey. We broke it down even further. So, if everyone in these U.S. cities borrowed or lent money to a loved one – it’d come out to just over 25 million people. *Latest Census Population Estimates for Cities and Towns (May 26, 2022)
- New York, New York – 8,467,513
- Los Angeles, California – 3,849,297
- Chicago, Illinois – 2,696,555
- Houston, Texas – 2,288,250
- Phoenix, Arizona – 1,624,569
- Philadelphia, Pennsylvania – 1,576,251
- San Antonio, Texas – 1,451,853
- San Diego, California – 1,381,611
- Dallas, Texas – 1,288,457
- San Jose, California – 983,489
Additionally, more and more people are using search engines like Google to find answers to questions like these.
- “What do I do if a friend asks me for money?”
- “Why are my parents asking me for money?”
- “How to set up a personal loan installment tracker?”
To help you on your quest to support a loved one, we put together three things we hope you consider before deciding to extend a helping hand.
Your financial goals
Before making any financial decision, it's important to consider your overall financial goals and objectives. What are you trying to achieve? Do you want to pay off debt, save for a down payment on a home, or build an emergency fund? Understanding your financial goals will help you make informed decisions that align with your financial priorities and whether you’re able to help others during a time of need.
Your personal circumstances
Every individual's financial situation is unique, so it's important to consider your own personal circumstances when making a financial decision. How much debt do you have? How much money do you have saved? What are your monthly expenses? Understanding your financial situation will help you make informed decisions about your money before helping someone else out with theirs.
The risks involved
Every financial decision can come with potential risks, so it's important to understand and weigh these risks before making any decision about money. It's also important to seek advice from a trusted financial advisor or other professional if necessary, as they can provide valuable insights and guidance to help you reach your financial goals.
With these considerations in mind, you can make informed financial decisions that are right for you and your unique circumstances.
Lending money to a friend can bring many benefits. It can strengthen your friendship, provide opportunities for personal growth and development, serve as an investment and bring a sense of satisfaction and accomplishment.
While it is important to consider the potential risks and make sure that you can afford to lend the money, lending money to a friend can be a wonderful opportunity to make a positive impact on someone's life.