Financial help as gifts?

[creditcardfree]

If they have debt, you might use a debt calculator to simply show her how repayment changes depending how much they send in each month. "if you send in an extra $200/mo, you will be debt free in x months, but if you send in an extra $400/mo you with be debt free in X months!!"

Often the frugal nature hits when one realizes the less they spend on stuff, the quicker they can get out of debt. Examples help drive that home!

I'd be careful to not go to far into the future with the plan to begin with. Many people try to do to much too quickly. It's safe to say it can be difficult to pay off debt, buy a boat, save for a house and kids college all at once. It's overwhelming when there are too many goals...with many of them so far off. I'm sure you will help her get there eventually!

[disneysteve]

I'd be careful to not go to far into the future with the plan to begin with.

I agree except I would make sure not to ignore retirement planning from the start. If they are in their 40s and have not been saving for retirement, they need to start immediately.

[scfr]

When my sister hit a financial low point (had to come to me for money because she could not afford to have her cat who was in pain euthanized), I felt I had to do something. After turning to the SA boards here for advise, I had a calm & loving & BRIEF chat with her explaining my concerns. I then offered to buy Suze Orman's "Women & Money" book for her, and offered to give her any advice I could. She took me up on the book, not on the advice. Since then, she has made quite a bit of progress. I know she will never save as much as I think she should, and she still spends more money on unnecessary things than I think is wise in her situation, but she has managed to put away money for emergencies and save for short-term goals. So overall I'd say my gift was successful.

Based on my own experience, this is my advice:

1. Make the gift an "extra" gift. Give it now, with no expectation of reciproicity. Go ahead and give what you normally would for Christmas or birthday, so they don't feel they are getting "cheated" out of a fun gift.

2. Give the gift in a form that you think will appeal to the recipient. I thought my sister would like Suze's style (flamboyant, with an emphasis on feelings & the appeal to "woman power") and I was right. I also know that my sister is a voracious reader, so a book would be best. But if your recipients haven;t cracked a book since high school but love to watch TV, then a DVD would be better received. I also knew a "beginner's" PF book would be best for my sister.

3. When you give the gift, give a brief, calm, non-preachy explanation of why you are giving it. Express your concern, and let them know the gift is because you love them.

4. Offer additional advice or support, but then you're just gonna have to stand back and let them come to you (or not) if they want to. Give the gift and then let them decide what to do with it.

Good luck!!!

[kanjoh]

There are some really great books out there that could make great gifts. Learn to Earn by Peter Lynch and I will teach you to be rich by Ramit Sethi are great options. A counseling session might be a bit tough to swallow though.