How to avoid family money stress

Nothing snuffs out Christmas dinner conversation like family money issues. Graham reveals the most important thing to do when navigating family financial matters.

 

What’s the first thing you should do when thinking of helping family out with money or sorting out an ongoing family money issue?

 

From helping my kids buy a house through to helping my mum and dad buy a house, I've observed some basic truths: Mostly that money does funny things to people, even those closest to you.

 

One of the easiest ways to make Christmas a little less awkward for all is to keep a paper trail of all that you are thinking to do. Basically write down what you are doing, why, and how money gets paid back and who will cover the costs.

 

Ultimately, a solicitor is the best person to formalise this paper trail and protect all concerned. But, as a first step, how about starting with some emails going around the family members concerned.

 

Even with the best of intentions people can forget who has done what, when and why. And these details become harder to remember when the key player is sick or even the sickest of sick, dead. 

 

Cover your bases. Give Christmas every chance to be peaceful. Write it down. Write it ALL down.

 

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.