Is It Smarter to Borrow Money From Friends or Family?

February 24, 2010

I'm already hooked on HBO's new series How to Make It in America, which chronicles Ben, a young designer, trying to make it big with the help of his best bud and sidekick Cam. The boys are strapped for startup cash but full of ideas and happy to hit up whoever will listen — from friends and family to acquaintances — for loans and leads. Borrowing money for a business venture or a down payment is a touchy subject for most of us, but often necessary. When faced with no other option, would you rather take money from a friend or your family?

8 Comments

Spectra 3 years 12 weeks

Neither, but if I had to choose, I'd probably pick my family over my friends. In college, I borrowed some money from my parents and paid it back as soon as I got a better-paying job when I graduated. And my parents once borrowed quite a bit of money from me when I was in high school and had a good summer job.

snarkypants 3 years 12 weeks

i borrow money from my parents. my job doesn't pay well, and i had to buy a new car last year, as mine unexpectedly broke down, so my expenses are pretty big right now. i don't think they actually expect me to pay all of it back. my mom jokes that if i don't pay her back, she'll just take it out of my inheritance. haha

socalbeachgal 3 years 12 weeks

Neither but family would be better than friends. I would be rich if my sister ever paid me back all the money I've loaned her over the years but I don't expect to see a penny of it. I don't loan her money any more.

weffie 3 years 12 weeks

I think it depends on who your friends and family are... For most people I would think family is the safest bet because you're tightly bonded so it's less likely you'll have big falling-out over something petty. That being said, I also had a roommate once whose parents were kind of trashy and resented their kids just for asking for favours, so I'd always help her out if she was in a pinch. It really depends on who you surround yourself with. I can think of at least a dozen people who would still love me no matter what I owed them, so if I needed a loan I'd probably base it on who would miss the money the least rather than whether we're related.

skigurl 3 years 12 weeks

neither, but i'd choose family if i had to choose for sure...when i was in school and stuff i'd borrow small amounts from my parents, and my brother and sister and i have been known in our younger years (in less stable jobs) to lend each other cash until payday and whatnot, but it's like 20$ or 50$ max and we pay the other back within a week i'd never want to borrow a large amount, never!