Why You Shouldn’t Lend Money to Friends

Lending money

Money is an exceptionally taboo subject, even if that doesn’t stop some from speaking incessantly about it. The older generation – your grandparents and mine – grew up believing that money is not something one discusses and that’s precisely the way many of us were brought up. In my home, money is discussed only between my husband and myself (though we do work hard to instill good money values and financial knowledge in our children) and never with anyone else. No one needs to know what we paid for our vehicles or how much we have in our retirement account.

Money is a touchy subject and some just don’t get it. They’re willing to speak freely about their finances, which is often uncomfortable for most. What’s even more uncomfortable, however, is when a friend asks to borrow some. Here are three reasons you should say no.

You Can’t Afford It

If you need that money back, you can’t afford to give it to a friend. There is an old saying that offers a bit of important information about preparing never to see that money again. If you need it back, especially by a specific date, then you shouldn’t lend it to a friend. Chances are good you’re not going to see it again.

It’s a Risk

When a friend borrows money, it puts your friendship at risk. You’ll always be thinking about it. They’ll always be thinking about it. You’ll always be wondering if they’re going to pay you back or if they can’t, you’ll hold a grudge. Don’t risk your friendships over a few dollars for any reason.

It Teaches Nothing

There’s a difference between a friend losing his or her job and having an unexpected expense such as a medical bill for a child that can’t go unpaid and a friend who is constantly relaxed about his state of unemployment and financial obligations. One will learn and the other will not. However, you have to decide which friend you have and make your decision that way. If you make a mistake and lend money to the wrong friend, he or she might never learn to take care of himself.

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