How do you tell a family member no to borrow money?

Try the following:

1. “I’m not really in a position to lend you money.”
2. “I really don’t feel comfortable doing that.”
3. “I’m sorry, but no.”
4. “That’s really not feasible for me.”

Why you should not loan money to family?

Lending money to friends and family can lead to financial problems for you and potentially cause relationship damage. Creating boundaries for loans to friends and family can help preserve relationships and minimize the potential for problems.

Should you refuse to lend money to friends and family?

You may feel like you’ve been backed into a corner with no way out, if your friend or relative is pushing you to make a quick decision. You don’t have to say yes, so don’t let the pressure get to you. Making the decision to refuse to lend money to friends or family before this becomes an issue will help alleviate the pressure.

What to do when a friend or relative has money problems?

Invite your family member over to dinner and send him or her home with the leftovers so that he or she doesn’t need to spend the money on food. You can even offer to help go over finances with your friend or relative and suggest some actions that can be taken to improve the situation and get the money need on his or her own.

Should you let people borrow from your emergency fund?

If you go around letting people know that you have a $30,000 emergency fund and that you make more than them, they will feel more justified asking for a loan. It’s awkward when friends and family ask to borrow money. But in the end it’s your money to give (or not to give). Be stern and explain why you can’t lend out the money.

What do family members say when you need money?

Other family members might just say: “ I need X amount of money for food/gas/some essential crap, can you lend it to me?” Once you open the floodgates of lending to a known parasite, they will mark you as a source of income in the future and continually badger you until you break and give in.