Do's and Don'ts of Giving Financial Advice to Friends and Family

Do you know someone who needs help with their finances? If you do the decision of whether or not to give them advice can be a difficult one. Part of you will want to help the person while part of you won't want to offend the person. Furthermore, some people are not very welcoming to advice. If you make the decision to try to help someone here are just a few ideas to help keep things from turning tense.

Don't talk down to the person. You can't give advice if you talk down to someone. You must be careful to make sure you are talking in a manner that shows you are only trying to help. When it comes to money people get embarrassed really quickly. Regardless of how bad a person's financial situation may be, talk to them with respect and like they are equal. If you don't, you won't get far at all.

Know when to stop. You must know when enough is enough. You can't force a person to take your advice if they don't want it. If you see the conversation leading to an argument, stop! If you see a family member or friend getting defensive learn to stop the conversation. Stopping will not only prevent an argument, but it may also help in the long run. Sometimes when a person has had time to cool off, they will come back later and want your help. Had you tried to keep the conversation going, you would have not gotten the chance to help this person. Keep in mind the old saying "You can lead a horse to water, but you can't make him drink."

Share your own experiences with money. Sometimes it's easier to relate to a person if you tell them about your own life experiences. Have you messed up with money? Almost all of us have. Share your 'mess up's' with this family member or friend. Letting them know you've messed up will make them more open to hearing your advice. They will see you are genuine and really have their best interest in mind.

Let the person know that you care for them. If a person is going to except your advice, they need to know that you care for them. Reassure them that the reason you are giving them advice is because you care for them and that you just want to see them do well. Sometimes this is all that it takes to get a person to open up and listen to what you have to say.

Offer to help the person even more. Let your family member or friend know that you are willing to sit down with them on another occasion. You can help them sort through a pile of bills, or you can offer to help them do a budget. Your friend may be so frustrated that they have simply overlooked simple things that can help get them on track. As the old saying goes two heads are better than one.

Ultimately a person can only be helped if they want to be helped. Show the person you are sincere and want to help. After that, you must leave the choice up to them as to whether or not they want to except the help.