Things to consider before lending money to your children

Mother and two adult children

Should I lend my children money? Source: Getty Images/JackF

Should you lend money to your grown-up children or not? The answer is often straight-forward for parents who’ve spent a lifetime loving and caring for their children. Experts though, encourage taking measures to protect your own financial future before digging into your retirement savings.


In contrast to parents who give unconditionally and end up worse off, experts have seen positive outcomes for parents who lend money to their children with a loan agreement. 

If you have a large transaction, Browne suggests protecting yourself and the person you’re giving to with a family loan agreement as a safety net for unforeseen circumstances.

People go bankrupt for lots of reasons. People get sick or have accidents and it changes their life circumstances.

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