KIDS034 We helped our kids, now we’ve lost our money – avoid our mistake (585 words)

This article uses a case study to highlight the risks of lending money to family without proper financial planning. It explores how a lack of formal agreements and professional advice led to significant financial loss and family conflict, and outlines steps that could have prevented these issues.

Pete and I were thrilled when our son Josh announced that he and Robin had found their dream home.

We were all so caught up in the excitement that when they asked if we could help them with a deposit we readily agreed.

They needed $98,000, and having recently retired, we withdrew the lump sum from our pension fund. It was a large amount, and of course we were a bit anxious, but Josh was so happy that we pushed our doubts aside.