Dave Ramsey’s Top Piece of Advice in Handling Money Discussions With Family
Written by
Ashley Donohoe
Edited by
Daria Uhlig
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Financial situations involving family members could threaten your financial stability or create a dilemma over how to handle the issue. For example, you might have a loved one with bad money habits or feel pressured to give money to your siblings or parents.
The financial expert Dave Ramsey often helps people in these situations on his radio show and online. As the following examples show, the best way to resolve money issues with your family is through open, honest discussion.
Ronald’s Gift Dilemma
In a Dave Ramsey column published by the Knoxville News Sentinel, an individual named Ronald asked about a dilemma involving his parents’ 50th anniversary gift. Ronald, who had been working on improving his finances, ran into a dilemma when two of his brothers asked their siblings to contribute $1,000 each — exactly what Ronald had in his emergency fund.
Ramsey’s response was to not give in to this pressure. He replied, “Since you weren’t asked about any of this ahead of time and had no say in anything, fair would be for you and your brother who weren’t consulted to pay zero. Zilch.”
Lack of communication about the gift was a key issue in this family money situation. Ronald’s brothers also didn’t consider that he couldn’t afford to contribute such a large sum.
Ramsey suggested that Ronald discuss his money situation with the brothers. “Explain what you’re doing and why you’re doing it, then let them know in a nice, but firm, tone you’ll give them whatever you can scrape up, but you won’t be chipping in anything close to $1,000.”
Andy’s Irresponsible Brother
In another Dave Ramsey column, this one published by Deseret News, a reader named Andy wrote to express concerns about his younger brother’s irresponsible money habits. Since the parents had died, Andy felt the need to help his brother and wanted Ramsey’s advice.
Acknowledging Andy for feeling concerned, Ramsey cautioned against shaming the brother or trying to fix the issues himself. Instead, he suggested, “You can always try to hold him to a higher standard, and refuse to tolerate immature, irresponsible behavior when you’re around him. You might even look for opportunities to use yourself as an example.”
According to Ramsey, gently discussing the money concerns with the brother and showing support were the ways to approach this challenging issue. “Take him out to lunch once in a while, or invite him over, and let him know you’re there for him if he needs to talk,” Ramsey advised.
Taking Ramsey’s Advice
Whether you’re dealing with a big purchase, savings plan or debt payoff, discuss it upfront with any family members involved. This includes considering everybody’s money situations and coming up with a realistic plan. Don’t let yourself give in to pressure when you can’t afford something proposed, or the money decision puts your other financial goals at risk.
When dealing with family members who make poor financial choices, you can discuss your concern or offer advice from your experiences. But don’t feel the need to fix the problem yourself. In his reply to Andy, Ramsey suggested that such a move could actually be harmful.
More From GOBankingRates
