Lending money to help out the people you care about is noble, but it can get messy if it's not handled correctly. Setting some clear ground rules and only lending money you don't need at all can help keep things hassle-free.
Photo by Filter Collective
If you lend money, always make it clear that you expect them to pay you back. It's good to help out, but you don't want it mistaken for a handout. With that said, the Credit Sesame Daily blog suggests you should only lend what you're willing to flush down the toilet, so it never backfires on you:
Don't bring it up again. The best way to alienate friends and family alike is to harp on them to repay the money. It's better to just not bring it up again. Remember that before you loaned the money you decided not to loan more than you can afford. Consider it a gift and don't ask where your payment is. And the next time a loan is needed, you've already laid the ground rules so you won't extend any more money until the original debt is paid.
These ground rules allow you to help out friends and family in need, but also keep it from being a divider in your relationship. If you only lend what you don't need, and keep them to one loan at a time, you can keep things reasonable for both sides. Nobody is getting pestered to pay up and no one is waiting on money they need for something else. If you can't afford to help, you're better off not offering at all.
Lending Money to Friends and Family Without Losing Both [Credit Sesame Daily]