Should We Loan Our Daughter Money?

Dave wants Dianne to walk a fine line when it comes to financially helping her daughter.

QUESTION: Dianne in New York wants to help her daughter. She needs to have her wisdom teeth removed but does not have dental insurance or the cash to cover the surgery. Dianne wants to know if she should help her. Dave says give the money to her as a gift because she is a responsible person trying to make her finances better.

Dave's ANSWER: It would not be smart to take out dental insurance, because very seldom does dental insurance pay off. You usually put more in than you ever get out. I would just give her the money.

What you are describing to me is a young lady who is getting started and is very responsible. Not once in the conversation did you talk about her laziness or inability to handle work or her overspending or her out-of-control life. You talked about a lady who is building her life, and you're just going to help her do that.

She's turning it around and heading in the right direction. You didn't call me up and say you're enabling bad behavior.