Money and Friendship: How to Help Without Hurting a Relationship

Many people lend money to friends. Surveys show that about one in five to one in three people say money harmed a friendship. Studies found 21% and 36% of people reported losing a friendship over money. People often feel more comfortable lending to family than to friends. Talking about money with friends is common, but it can be awkward.

If you decide to help, set clear terms and write them down. Decide if the money is a loan or a gift. Ask for a simple repayment plan and a date. Consider asking for partial payments. If you cannot handle the loss, do not lend.