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I got a phone call on Sunday afternoon from a friend in tears. After a few minutes of wailing in my ear, I finally managed to get the problem out of her. She had been about to go and do her shopping for the week, but after checking her bank balance online, she’d discovered that an unexpected (read: forgotten) bill had chewed up the last of her cash until payday, which was still over a week away.
Not only was she now unable to get groceries for the week, she couldn’t attend the birthday drinks of a friend on Friday evening, as she was now flat broke, and feeling like a prize idiot. Worse than broke, actually, as she was at the end of her overdraft and her credit cards were fully maxed-out and she didn’t dare call her parents for help again, as their ‘loans’ came with a half hour lecture on managing her money better.
At this point I started to feel ever so slightly uncomfortable. Here was a good friend, who I knew was terrible at managing money, and it felt like she was fishing for a loan. I didn’t know whether she really was after a loan – she may have just been venting her frustrations. Long story short: before I could think better of it, I told her to meet me at the supermarket in an hour and I would buy her some groceries so that she wouldn’t starve for the week.
A couple of hours later, I waved goodbye to her as she walked off home with three bulging shopping bags. She promised to pay me back when she got paid, but I told her not to worry about it. It didn’t break the bank or cause me any financial hardship to pay for her shopping, and I knew that if it was the other way around one day (although hopefully it won’t be!), she would probably do the same for me.
As I walked home though, I did start to feel a little bit annoyed – mainly because I knew that she had maxed out her credit card a couple of weeks ago booking a package holiday to Spain. Not that it’s for anyone else to judge how another person spends their money, but I felt that I could understand why her parents gave her that lecture every time she needed to borrow money.
Even though I feel like I have got my act together regarding my finances in the last year, I never talk about it with my friends – I prefer to write about it for those who are actually interested. A few years ago, my situation was very close to that of my friend, and if I had needed to borrow money it would have been awful to have to receive an earful of unwanted advice in the process.
I feel a little bit guilty for these judgemental thoughts though, and it’s been playing on my mind all week. Do you ever give your friends or family members financial advice? Does it irritate you when people around you don’t take any steps to improve their financial health because they know there will always be someone else to rely on and pick up the pieces? Did I do the wrong thing by being that ‘someone’ for her this time around?
23 Responses for "Do you give your friends financial advice?"
I think what you did was very kind-hearted and shows what kind of person you are. I do think there comes a time when judgment is okay. She’s making poor choices. You are a good friend. Hopefully she will learn someday and change her ways and get her financial life together.
I think it’s probably a good idea for your mental health to consider any money (or in this case, groceries) given to a friend as a gift with no strings attached. Otherwise, it will change the dynamics of the relationship since resentment will eventually start festering.
Since it sounds like this was the first time you’ve done this for your friend, I think you did a good deed. However, if she comes back to you with a sob story again, I’d take the tough-love approach.
Since I’m passive aggressive (he he), I give people financial advice by telling them about my financial failures (of which there are many) and the steps I’ve taken to remedy them. If they can’t take a hint, heck with them!
Hey frugal, thanks for stopping by our blog!
You’re much nicer than me! I would have waited until she actually asked for help before buying her groceries for her since she already has a history of overspending and could hopefully learn from this experience. Granted, I would have treated it as a gift when that happens.
I agree with you on the financial advice front though. In my experience, people don’t take on board financial advice if you offer it voluntarily to them. I guess it’s the adage of old habits die hard… unless they really want to change it, then that’s different.
Wow. Thats a tough one – and you are such a sweetheart buying her groceries! As a gift! I’ve exercised similar generosity in the past – which, in a way, led me to the situation I am in now.
My current outlook on my own financial situation is much different now – so I think I would buy her the groceries, but ask that she pay me back when her paycheck arrives. I agree with shinkycat, that its best for your mental health to think of it as a gift, but I’m sure that I would miss the $100 the most when she is on holiday in spain and I’m watching the rain drizzle from my office!
I only give advice when I’m asked for it. If it’s my family they usually know what I’m going to tell them, and some of the time they heed the advice I give them (although not always). I guess I’ve been reasonably lucky with friends. They usually see what I’m up to in terms of saving and investing and they get inspired and ask for some advice to help them on their way. In every one of these cases, my friends have gone on to really improve their situations dramatically. I’m proud that I was able to help them. On the other hand, I now have a couple of new friends living paycheck to paycheck. I don’t say anything to them about it. They know my situation and they know I’m approachable. If they get to the place that they are ready to make some changes, I’m sure they’ll ask.
Do you feel that it has been weighing on your mind because she didnt actually outright ask you and that you kind of just “volunteered?” That part would eat at me.
In a sense her crying was asking you but that’s not very nice on her part, to put you in that position. I may be harsh though.
As for judging her- I probably would have done the same thing and of course felt bad about it afterwards also.
Hi there-you did a very good deed and paying for her shooping rather than giving her cash was definitely the way to go! if you feel you do not want repaying, then at least you know if you ever need her help in the future, it will make it easier to ask for it. Its very hard to give family and friends financial advice, i tend to keep my finances to myself.
That was really nice of you to buy her the groceries. And I guess I disagree with most of the other comments – I would not have waited for her to ask you, and I would not have made her pay you back. Loans between friends are never a good idea. And don’t hold your breath, but if she is a good friend, she will pay you back somehow.
In the future, though, don’t give her anything. Helping someone once is a nice thing to do. More than once and you become a crutch. Don’t offer her financial advice, you don’t want her describing the “lectures” you give her to others. People only get on top of this stuff when they absolutely have to.
I am 22 and married. My husband and I are lucky enough to be young and be financially secure (besides my college debt). I have definitely been in the “poor person position” but I’ve never branched out for help. My friends also irritate me sometimes because they know that I have money and they assume I can drive their butts all around town, pay for their meals, etc. At least, if I let them.
I probably wouldn’t have bought her groceries, especially since she didn’t outright ask. I think I would have just been a listening ear. Definitely consider the groceries as a gift – to have asked her to pay you back would have been something for you to stress over because she probably wouldn’t have paid you back.
Good post and good luck with the friend situation!
I think you did the right thing – but I’d think twice about doing it again!
I often end up giving close friends and family advice, although I am not sure if this is because I am good with money – or because they are so bad with it! I had some Dave Ramsey stuff shipped over for my mum the other week. If she doesn’t fill out her new workbook, I might get a bit narky though!
I was also an evangelist when the thing about reclaiming bank charges kicked off. I showed people at work what to do, and helped them with their letters etc. – I saved one colleague nearly £4000. That gave a good feeling.
yeah, tough for sure. i actually kinda enjoy talking about finance and stuff w/ friends and family, but only because no one knows i blog about it, so i get to use all my new found knowledge on them and see how it works in “the real world”! haha…
my next door neighbor actually pops in frequently now to discuss personal finance after i went on a rant about how some of my friends are idiots and don’t work on fixing anything (sound familiar?). but i totally get that skeevy feeling too whenever someone is “about” to ask for something…annoying as hell, but you handle it pretty well!
I found your blog via a comment you made at Counting My Pennies and I hope you don’t mind my weighing in with my two cents having read only this one post of yours. I think your heart was in the right place to help your friend, it was a very generous and caring gesture on your part. But… I don’t know about not making her accountable for the groceries purchased. I hope she insists on paying for the groceries, and I hope you will accept the money if she does. I can completely understand viewing it as a gift in your mind so as to not put too much energy into it if she ends up not being able to pay you back. I think it would be a good idea for you to have a plan already formulated in case she runs out of money again. Maybe suggest that she keep a stash of canned goods that she could get by on in an emergency. I’m adding you to my feed reader. Will you update to let us know how it turns out? Oh, and your original question was if I give financial advice to my friends… I pretty much keep my opinion to myself. Sometimes it can be great blogfodder…
I discuss financial questions with my friends all the time but find myself stopping short of giving advice. The last advice I gave a friend went on deaf ears. I told him he should open a 529 account and start putting small amounts of money into it. He just laughed and said they had other bills that needed to get paid.
Never. Friendship & finances are a highly combustible combination. Do Not Mix!
Thanks for stopping by!
It really depends on the situation. Some people seem more open to financial chat than others. With good friends, I share gratuitous financial advice, more relevant to mine than theirs unless they show some interest, but they rarely do. Oddly enough, I find it easier to discuss financial news with people I am not necessarily already good friends with.
With regards to helping out your friend, I think it’s fine this once but as you yourself said, she created this situation on her own. She booked a vacation that she evidently could not afford, having to max out a card and not being able to pay her other bills in a pinch. I’m not suggesting that you ought to judge, but I do think you ought be very careful not to become an enabler. Lectures don’t tend to work with folks who don’t feel they need to change their ways, so her parents lecturing her simply drives her to see other handouts or shoulders to cry on. Because of my family, I’m very aware of the ease with which you find yourself the “savior” and it can become quite uncomfortable. Occasionally, I will make small gifts, like chipping in for a discounted massage with one friend for another girlfriend who has been and may remain jobless for some time, but only if I can swing it.
I might never have considered holding out until my friend actually asked me for help until I read the comments, though, because my reaction would naturally be to offer help. It strikes me that for your chronic financially messy friend, perhaps that would be the right tack lest she continue to take your kind heart for granted, and ruin the friendship.
I had a friend loan me £40 once so that I could take the tube and buy grocheries that week. I can still remember meeting her after law school class and feeling totally horrible. I paid her back, but defo keep it in mind when thinking about our friendship as a very sweet thing she did for me and she did it w/o a lecture.
I try not to lecture, but it’s my older relatives that I get upset with because I figure they should know better. I was a financial train wreck for many years, though and do my best to remember that (as if the bills aren’t enough to remind me!).
[...] Do you give your friends financial advice? (Me, no. Well, not yet at least : ) – FruGal shares her (entertaining) story about a friend and her financial crisis. [...]
Frugal Im a new reader of your blog and this post struck a chord with me because Im probably more like your friend than I would like to be…
To be fair I dont ever borrow off friends purely because I dont think its fair and I would just be plain embarrassed to ask!
I bought a house last year and I have improved as a result, the mortgage freaked me out and its rare now I end up having a month where I have to run and ask my mum for a handout, I tend to stay in if necessary and focus on house stuff rather than feeling like a loser because I am not out with my friends. Anyway I just wanted to say that this post struck a chord and I am going to be more proactive with the saving and not borrowing…
Just read your “5 minutes with” over on Hollyisstoppingshopping. Hope you don’t mind me commenting.
You were a very good friend, and offering to buy groceries instead of giving money was the best way to go. If it was me, I would have to pay it back, but your friend may not, so treating it like a gift is best for your peace of mind.
As for financial advice I don’t give it, but frequently take it. Ever since our Holly started on her no shopping quest she has been a fountain of good advice thanks to fellow bloggers like yourself. With any luck I’ll be debt free in a couple of years and I have her to thank for my “lightbulb moment” . Will be adding you to my regular read list.
Wow, I think this is the biggest response to a post so far.
Thanks for all your advice. I don’t know whether this friend of mine will ever need to borrow more money in the future, but I have a feeling that maybe borrowing money off a friend is the wake-up call she needed. She emailed me on Saturday to say how grateful she was, and that she would be inviting me around for dinner next weekend as a thank you. Which is unneccessary, but sweet, and I’ll definitely go along because it will probably make her feel better if she knows that she has done something to say thanks.
As for the advice, if she decides that she wants to get her financial act together and asks for advice, I will certainly share everything that I’ve learnt over the past 18 months with her. But if she doesn’t ask I will definitely spare her the lecture. Like Savings not Shoes said, she probably doesn’t feel great about having to rely on friends for financial support, so I thinks it’s best left alone for now.
Thanks again
I think sometimes its tough trying to give your own friends advice. My group comes from all different backgrounds, both educational and cultural, we have a very diverse group. When it comes to serious stuff many of the other guys try to shrug it off so I really only dish out advice when people ask for it. Otherwise, they would take it as me trying to preach or lecture them with some of my ideas. Jocks are tough are the edges.
Although it was a very sweet thing that you did, it was probably the furthest thing from actually helping your friend that you could do. Most responsible people would appreciate the offer to help, but would not take it. Like the other posters said, she now has a trip to Spain AND free groceries for a week, thanks to your generosity. For me, knowing how a friend spends their money is key to whether I’d be open to helping them or not. The friends that always have the latest and nicest things but run short when bills are due? They are on their own. The friends that have real unexpected circumstances that pop up I will gladly help. I’m also not sure how much I agree with not giving her some sort of financial talking-to when you’re giving her help. Obviously no one “likes” to get lectured but when you’re taking a handout you can’t be so picky. Its great motivation to get your finances in gear: you don’t have to get lectured by anyone else when problems come up(parents or otherwise!)
I’d encourage her to take a step towards financial independence and write a simple cash flow programme like I wrote in Excel which does a day by day prediction based on a past bank balance with all the standing orders etc taken into account. It gives me a figure for what should be IN on any particular day but more importantly what is actually SPARE to spend.( totally different figure) I did it ‘cus I was sick of unexpected bank charges for going over my limit. I put in conditional formatting so that if I am in a dangerzone the typeface and colour changes so I can immediately identify it ( great for visual thinkers who can’t understand figures, like me) Course you have to remember to keep all receipts and enter them so that the prediction can be accurate.That way you stay ahead of the online bank balance which can be misleading.
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