It’s no secret that many families are struggling financially these days. The economy is tough, and jobs are scarce. Unexpected medical emergencies also push people into a tight spot. So don’t be surprised if you find any family member or close friend in financial turmoil.
However, if you’re lucky enough to be in a position to help your family members in financial trouble, there are a few things you can do to ease their burden.
One obvious way to help is to simply give them money. But if you’re not in a position to do that or want to do more than just write a cheque, this blog post is for you!
10 Ways to Help Family Members With Money Problems
Let’s check out some non-financial ways to lend a helping hand to your family in crisis:-
- Assist in Job Search
One of the best things you can do to help in such a crisis is to help them find a job. This can provide them with much-needed income and help them get back on their feet.
First, you can help them update their resume. Afterward, you can also search online job boards, company websites, and even social media sites to find a suitable job for them.
2. Help to Open High-yield Savings Accounts
A person submerged in a financial crisis is too consumed to be aware of the latest methods of savings. A high-yield digital savings account is an emerging powerful tool for saving your money.
Make them aware of the benefits of digital savings accounts over traditional bank accounts. Set up an automated transfer from their salary account to a digital savings account. This way, they can earn good returns while saving for a rainy day.
3. Encourage Them to Apply for Assistance
Applying for government assistance can be a daunting task. But you can help by filling out the paperwork and gathering the required documents.
Various programs are available for people in crisis, such as low-rate ration, housing assistance, and healthcare. Find out which one they are eligible for and encourage them to apply.
4. Create a Bill-paying Plan
They can have trouble keeping up with their bills at such times. Thus another way to solve financial problems in your family is to help them create a bill payment plan.
This can involve setting up a budget, negotiating with creditors, or setting up a payment plan.
These are just a few of the ways you can help your family in non-financial ways. Now, look at what you can do financially for them. A simple thing to remember is that your finances must be strong before helping someone else.
5. Give a Cash Gift
If you have the means, giving a cash gift can be a great way to help a family member or close friend in need. Be sure to discuss how they plan to use the money and make sure it is used for the intended purpose.
A cash gift is not lending money, so you will not get the money back in the future. Give that much only what you can afford.
6. Prepay Their Bills
Bill payment puts maximum pressure on someone in a financial pitfall. Thus, if a family member is struggling to make ends meet, help them out by prepaying some of their bills. It will be a great relief for them.
Choose the dues which are essential for day-to-day functioning. This can help ease their financial burden and help them stay on top of their finances.
7. Take Long-term Insurance for Them
Health care is expensive. In case of a long-term financial crisis, such as a job loss or medical bills, consider buying them a long-term insurance policy. This can help them financially if they are unable to work or earn an income.
Primarily the primary bread earner of the family must have plans like an endowment savings plan and ULIP to secure the family financially.
8. Buy Gift Cards
If you are not willing to give cash to your family member or think their self-esteem will come in the way of receiving the money, you can gift them gift cards, vouchers, memberships, discount coupons, etc.
Find out where they buy groceries, apparel, and other useful things and get gift cards from those stores and portals. This way, you will reduce one of their expenses.
9. Co-sign a Loan
If someone in your family needs a loan but has bad credit, you can help them by co-signing the loan. This means you will be responsible for the loan if they are unable to make the payments.
Be sure to only co-sign a loan if you are confident that they will be able to make the payments.
10. Appoint a Financial Advisor
Consult a financial advisor if you are unsure how to help your family members or close friends in a financial crisis. They can help you assess the situation and make recommendations.
They won’t be able to afford a financial advisor at such times. You can help them by bearing the fees of the consultant, who can show them their options.
So, this is all about 10 Effective Ways to Help Your Family Members in Financial Trouble
I hope you find this article useful