Setting boundaries, especially with family members, can be a tricky balancing act and finances are no exception.
What Are Financial Boundaries?
A recent study from Savings.com indicates45% of parentsare still providing financial support for adult children.
You asked. Dear Penny answered, explaining how you can save money when yourfamily keeps mooching off you.
Apparently we have all forgotten the airline safety PSAs about securing your own mask before helping others.
No Interest Til Almost 2027?
Thats one of many clear warning signals youre in an unhealthy financial relationship.
Traci Williams, board-certified clinical psychologist and certified financial therapist in Atlanta.
I am in no way, shape or form saying not to do that.
Decide how much you cancomfortably budgetto help family or friends.
Simply explain youre trying to address an ongoing problem thats undermining your effort to save money.
You dont need to feel beholden toexplaining or justifying your boundaries.
Have the Money Talk
This is not a simple talk, but its a necessary one.
I will always say that it starts with communication, Evans explained.
Come to the conversation prepared for the power dynamics in your family situation and acknowledge negative emotions that arise.
Above all, be prepared to stand firm and stay calm.
Let your family members know that you support them.
From there, you’re able to let them know you are working to better control your finances.
By taking responsibility and speaking from your perspective, they are less likely to feel blamed or become defensive.
But youre not in this for an ego boost.
Youre there to advocate for yourself and build the right foundation for a healthier financial future.
Take the time to listen to the situation and decide if the unmet long-term need is a financial one.
Perhaps they need a financial literacy class or helpputting together a budget.
Offer Your Time
Think about non-financial support you could provide that would be helpful in this situation.
Help with childcare, yard work or simply scour classified ads looking for solidside hustlesto bring in extra cash.
For instance, experience as a freelance writer makes you the perfect person to polish a resume.
If you find yourself unnecessarily shifting your limits every time a problem arises, your boundaries arent boundaries.
Keep in mind that you are only responsible for yourself, Williams reminds.
Kaz Weida is a senior staff writer at The Penny Hoarder covering saving money and budgeting.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…