How to provide long-term financial support for friends and family
While people are familiar with their own personal accounts like IRAs, they generally do not know what financial vehicles exist to help others beyond standard 529 education plans. Without structured ways to cover the core basics for their loved ones, they often resort to direct loans that go unpaid for years and end up ruining relationships.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
How to provide long-term financial support for friends and family
- 1Contributing directly to 529 education savings plans and 530A/ABLE accounts opened for friends' children.Did this help you?
- 2Treating the money given as a gift rather than a loanDid this help you?
- 3Refusing to provide further financial assistance and setting hard boundariesDid this help you?
- 4Suggesting the friend apply for a consolidation loan from a bankDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“Last year she got involved with a scammy loan for a small amount. I paid it off for her but she hasn’t paid back yet.”source ↗
“Well, I guess I just don't know what financial vehicles exist for helping other people. I am fairly well versed in my own vehicles -- IRA, HSA, and etc -- but really only know about 529s and 530As where you can contribute to help other people.”source ↗
“Yeah, loaned money to family and in significant amount. Been 6 years and have yet to see it back. I've pretty much written them off.”source ↗
“I have a few very close family friends for whom I would like to cover the bases.”source ↗
“Is there any other core basics I can cover to try to make my friends and family more comfortable in the future?”source ↗
“I would really like to make sure her son has some financial support for later in his life. Wondering if there is anything else I can do”source ↗
Where this came up
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