Love & Money: Managing Money & Your In-Laws

money

Over the past few weeks, I’ve received emails and relationship questions from readers who are frustrated with their financial situations, either with their parents, their in-laws, or their own partner. Therefore, the next couple of blog posts are going to focus on “Love & Money.” To kick things off, we’re going to take a look at managing finances and your in-law relationships.

Research suggests that in-laws can be a big source of support, including financial support. Some in-laws are able to give generously and expect nothing in return. Others may not have the money to give, but lend support in different ways. And others still may not only keep track of every gift or small loan, but expect to have a say in your money matters. Readers have expressed several concerns ranging from monetary “gifts” that came with strings attached, financial dependence so great that it’s hard to get out from under your in-laws thumbs, or in-laws that never loosen the purse strings.

Today we’ll look at how to manage these thorny issues with your in-laws without starting a family feud!

Situation 1: The Financial “Gift”

Imagine that you’re buying your first home, a new car, or your new nursery needs decorating and out of nowhere your parents-in-law offer to give you a down payment, or offer to help you deck out the baby’s room. They say that it’s a gift, they’re happy to do it, and it makes them happy. You graciously accept, excited and appreciative.

Fast forward a few weeks, months, or years and you are wishing you never accepted this “gift” because it’s more trouble than it’s worth. Perhaps your in-laws constantly remind you of the “help” they gave you, especially when they want you to do something for them.

Or, maybe they feel that since they helped you with your house or car, they can comment on or dictate what you can and can’t do with it. “Oohhh, you really shouldn’t paint the living room that color, we’d hate it to affect the resale value.”

The Fix: You could bite your tongue, let your blood pressure skyrocket, and slowly lose your mind, or you can face it head on.  Enlist your sweetie pie to talk to his/her parents. It is important that your spouse does the talking, because even if you have a close relationship with your in-laws, they may be more sensitive to straight talk coming from you. Your partner needs to let your in-laws know that although you appreciate the generous gift they gave (stress that part, regardless if it was $5 or $5000), you do not appreciate feeling like there are strings attached to it. They may not even be aware that they’re acting like this, or calling them out may stop them in their tracks.

If this doesn’t work, then you need to come up with a plan to repay them so you don’t “owe” them anymore, or they don’t “own” you. I know it’s an unforeseen expense, but the price of being indebted to your in-laws forever is far greater.

Situation 2: You Need Financial Help

Sure, the economy is bouncing back, but not as quickly as you hoped. As a result, you may have found yourself needing to rely on your in-laws for some assistance to make ends meet. In addition to this being a difficult favor to ask, not setting proper boundaries and developing a concrete “pay back” plan can turn this arrangement into a hot mess before you can say “We need to borrow money.”

When you’re on someone’s pay roll, you tend to have to answer to the boss. Soon you may feel that your parents-in-law are monitoring (and commenting on) all of your behaviors and purchases. “Oh, more beer, great,” or “Wow, you bought a new TV? How did you manage to pay for that?” Soon, your life is not yours anymore and you’re beholden to your in-laws.

The Fix: Treat this like a business deal. Don’t nickel and dime them, or piecemeal small loans together. Instead, ask for a realistic lump sum or a monthly loan amount. Next, establish terms of repayment, in writing. Will payments start as soon as you or your honey find a job? What is time frame of repayment 6 months, 6 years? Will interest be charged? Can you take out another “loan” or is this a one-time deal?

Additionally, you may want to consider including a “no meddling” clause. Seriously, you should explicitly state that since this is a loan, your in-laws cannot question or comment on how you spend your loan money.

Although you may wish your parents-in-law would just give you the money free and clear (and some may), be warned that this has issues too (see Situation 1).

Situation 3: Your Never Get ANY Help

Your in-laws bankroll your sibling-in-laws’ lifestyles, or give them lavish presents while you and your family walk away empty-handed.

The Fix: Although it may hurt or infuriate you that your family gets short-changed, consider it a blessing. Given the potentially sticky situations that can arise, it is better to not have to rely on your in-laws financially. However, if they want to give a true gift, then go for it, but be proud of your ability to stand on your own two financial feet.

Your in-laws may be thinking the same thing. In fact, the lack of financial aid is likely a result of your in-laws’ confidence in you and pride of your financial independence, rather than a dislike or picking favorites (although, this can happen!).

And, don’t overlook the things they do to support you that aren’t financial: help moving, babysitting, or a shoulder to lean on. Those things are worth their weight in gold!

~~

Money and in-laws doesn’t have to go together like oil and vinegar. Although it can be tricky, with the right communication negotiating financial terms with your in-laws can be done without harming your relationship!

Until next time,

Sylvia

JustASquirrel_180RedCircleLogo (2)Don’t miss the next post in the Love & Money series: Mine, Yours, and Ours? Managing Finances in Marriage

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