| The Smith family is your typical middle class family. Jan | | | | question? I see too many people counting other |
| and Robert Smith have two kids, JoAnn and Ray. Jan | | | | people's money into their budget. What am I saying? |
| loves her family dearly because she was raised in a | | | | Here is a common example. Your friend is married and |
| big family of 12. Jan is the oldest. Jan's siblings are | | | | has children. She drives a nice car and lives in a |
| relatively close knit. Each visits each other. Jan's | | | | mansion. However, she is constantly borrowing money |
| extended family has a habit of borrowing money from | | | | from you for groceries. She says she's short this |
| each other. Jan's parents have even found | | | | week. But, it's really the same story. If you don't get |
| themselves borrowing money to prevent one of their | | | | her the money, she tries to make you feel guilty. |
| children from jail. Jan's parents are going to always | | | | How will her children eat? Actually, it's a case where |
| found going from store to store to pick up hot checks | | | | people don't want to be accountable for their financial |
| for their children. When Jan usually goes to her parents | | | | decisions and blame others. Sadly, this attitude is bad, |
| about this action, her mother only says, "Family helps | | | | but what is worse is the family and friends who justify |
| family." Jan doesn't lend her money to her siblings | | | | their behavior by lending them money. I hear it all the |
| unless it's an emergency. She doesn't participate in the | | | | time--the many excuses. He's just down on his luck. No |
| borrowing among her siblings. The Smith Family has a | | | | one cares about him, but me. Family always helps |
| solid financial foundation while Jan's parents and her | | | | family. I've come to the conclusionthat money can't fix |
| siblings are in a financial nightmare. Jan wonders if her | | | | everything. |
| brothers and sister will ever change? | | | | You can't continue to live with the guilty. Loaning your |
| The Panic Button | | | | money away makes the lender more dependent and |
| Why are we so unhappy with all of our material | | | | increases the chances that your finances will |
| wealth in America? We witness each day the | | | | eventually suffer. Here are some steps for resolution: |
| destruction of families and the demise of the individual. | | | | - Discuss your borrow/lend policy for your family. |
| My sadness is fact that some of these problems are | | | | - Never lend money and hide it from your mate. It's |
| self-inflicted. We found these interesting finance facts | | | | bound to stir up trouble. |
| about our national past time--financial debt. According | | | | - Decide if you are really making a loan or just giving it |
| to Bankrate.com, some 1.6 million American households | | | | away. If you give it away, |
| filed for bankruptcy in 2003.Average per household | | | | - you won't need to worry about getting paid back. |
| debt, excluding mortgage debt, is more than $14,500. | | | | - Establish your rules upfront with compulsive |
| About 40 percent of households spend more than | | | | borrowers so that they understand your position. |
| they make. How can this be? It would appear that | | | | - Give tough love to compulsive borrowers. |
| Americans are borrowing their way to happiness. | | | | - Don't let other people's crisis become your reality. |
| Society tells us. According to one financial study, the | | | | Ask for more time for a decision. |
| average credit card debt is approximately $8,400. You | | | | Financial Peace |
| explain, "We can have it all even when we do not | | | | Finally, keep it simple. Money and family don't mix; |
| have cash to pay for it; therefore, we charge and | | | | however, you can avoid the drama when it comes to |
| hope that it disappears." | | | | family and money. Establish your position upfront about |
| It doesn't! Individuals need to be educated on personal | | | | lending money to family and friends. Keep to your |
| finances. I see people everyday doing crazy financial | | | | guns, even when Cousin Jim calls your mother |
| things such as (1) rental furniture, for an apartment | | | | because you won't lend him a five bucks. Don't allow |
| instead of waiting, (2) getting money at a Check | | | | individuals to trivialize how you handle money. Most |
| Cashier place which charges high, interest rates, (3) | | | | family member are jealous of you anyway if you have |
| paying 24 percent interest on a credit card. | | | | your finances in order. Love your family. Improve your |
| The Reality of Life | | | | relationship. Remember, however, that money and |
| Some people will never listen. Is change out of the | | | | family are a deadly combination. Start Today. |