Barefoot Investor Scott Pape’s tough advice for couple after son’s shock act with their $30,000 loan
The Barefoot Investor has advised a couple never to lend their son money again after their child blew $30,000 meant to help with a down payment on a house.
A distraught mother wrote a letter to financial guru Scott Pape explaining her family’s financial situation.
She explained that she and her husband had loaned their son and his partner, who have two small children, $30,000 to use as a deposit on a house.
“We explained to them that we were not well off, that we were still paying off our own mortgage, that the money was to help them secure a home, and that they could ultimately pay us back using their own home as collateral.” , she says. wrote in a column for the Daily Telegraph.
However, the young couple wasted the loan, while the mother did not know what she was spending the money on.
‘My son has a lot of remorse, but his partner not so much. So no house and $30,000 gone,” the mother wrote.
The issue has since driven a wedge between the family, with the parents’ marriage suffering and their relationship with their son damaged.
The mother explained that her husband wants their son to “be responsible and pay it back,” but she feels inclined to “write off the loan as a gift” so they can repair their relationship.
The Barefoot Investor has advised a couple never to lend money to their son again after their child blew $30,000 meant to help with a down payment on a house.
The mother explained that she and her husband had loaned their son and his partner, who have two small children, $30,000 to use as a deposit on a house (stock image)
‘Hubs says firmly no. So should we forgive and forget, or let them scrimp and save to pay it back over countless years?’ the woman wrote.
In his response to the ‘loving mother’, Mr Pape said he sympathized with the couple’s predicament as their attempts to help their son had put a strain on their marriage and cost them $30,000.
Mr Pape advised the couple to sit down and talk about the situation, claiming it was time for the couple to put themselves first.
“This is clearly eating you both up inside (much more than your son, otherwise he would pay it off!),” he said.
He then suggested that it was best for the couple to “forgive the loan and move on,” but to never lend their son money again.
“I would also suggest to your husband that the quickest way to get rid of this ugly, angry feeling is to forgive the loan and move on – not for your son’s sake, but for your sake,” wrote Mr Pape.
“After all, you are still his children’s grandparents, and he is still your son. But don’t ever lend him another cent.’