You’re probably fairly used to helping your family out with a little extra cash here and there.
Whether it’s pocket money for doing chores, or money to pay phone bills, go see a movie or buy clothes, for example.
But what happens when they put their hands out for help to buy the big ticket items? They might want some money to buy a car, pay for a holiday or even get a deposit together to buy their first home.
The question is, even if you can afford to help your family financially, should you? It could provide them with a helping hand that’ll really make a difference, but you also must ensure your needs are looked after and you’re not leaving yourself short.
Here are some things to think about:
It’s great, tax-free way of helping your family when they need financial help.
Just make sure you think carefully about whether your gift will put a dent in your retirement savings and if you’ll have enough for the lifestyle you want to lead when you wind down from work.
Also consider the impact on your Centrelink entitlements. If you’re receiving benefits, such as the Age Pension for example, a loan or gift to your child may impact on your payments and your financial security. You must tell Centrelink about any gifts or transfers within 14 days of when they have occurred.
This is one way to help your family own their tomorrow ─ whether it’s buying a car or first home, but be careful not to put your own home or lifestyle at risk in the process. Make sure you only go guarantor for an amount that you can comfortably afford to pay if your family defaults on payments.
Whatever option you choose to help support your family:
Source: AMP.
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