You won’t want to miss the next episode of The Women’s Eye Podcast with host Stacey Gualandi and financial expert Catherine Scrivano, an empowering discussion about when and why to loan money, and when and why not to.
Who out there has loaned money, has been asked to loan money, and has said no to loaning money? (I’m sure many of you have said yes right away without thinking of possible ramifications.)
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In the past, I have given money to friends and family members, cash I never saw again. Sometimes lending goes smoothly; sometimes not. I’ve also had to say “no” on some occasions, which is so hard to do because it involves money!
“It also goes into areas of control, especially in families. I’ve noticed that there’s an expectation among siblings that everyone should be treated equally, and that our lives should progress equally. And if one is more prosperous than another, there might be some resentment and a sense of entitlement. It gets into psychology that I’m probably not qualified to judge, but by experience, I’ve seen a lot.”
– Financial planner Catherine Scrivano
Catherine is a regular contributor to The Women’s Eye Podcast for our special Building Money Power series. She says there are a number of reasons why someone would need to borrow cash including losing a job; poor financial choices, or opportunities to invest in.
But loaning money to a friend or family member is always a delicate situation. Catherine says you need to take a few things into consideration before you divvy out your hard-earned dough.
“I think the first thing is to acknowledge that there’s a high likelihood that your relationship with this person is going to change going forward. It may end up being strained if repayment doesn’t go as planned and if there’s any misunderstandings about the nature of the loan,” says Catherine.
Also, setting money boundaries is an important skill to develop. If you are asked to loan money, Catherine shares this advice and more:
- Be honest if you want to say no
- Remember your priorities: protecting your financial health is being responsible
- Offer help in a non-financial way.
“But I think the best piece of advice is to get everything in writing where both parties understand what the terms of the agreement are!”
Join us for more practical financial advice from Catherine Scrivano on this episode of The Women’s Eye podcast.
Check out Catherine’s Building Money Power podcasts here!
Catherine says,
“You don’t have to be wealthy to be wise.”
For more information about Catherine Scrivano:
Website: www.cascofinancial.com
LinkedIn: Catherine Scrivano
Facebook: Casco Financial Group
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