Loan To Brother?
Russ’ brother makes stupid money decisions and wants Russ to loan him money.
QUESTION: Russ’ brother makes stupid money decisions and wants Russ to loan him money. Should Russ loan the money with the stipulation that the brother writes a book report after reading The Total Money Makeover?
ANSWER: I would tweak that suggestion a little. Never loan family members money because you will destroy the relationship. Thanksgiving dinner tastes different when you eat with your master rather than a relative. The big thing here is that you don’t want to enable his misbehavior with money by giving him money and bailing him out without teaching him how to handle money.
I would give him two options. Either do a book report and I will GIVE him some money, or I would take it further and give him more money if he demonstrates that he’s making a budget and taking Financial Peace University. Invest in him and his behavior change. But if he doesn’t do that, then give him nothing.