Summary
- Welcoming someone with financial challenges to live with you has its challenges
- Be sure to set boundaries, protect your budget, and avoid lending money
- FIGFCU offers free services, including tutorials, webinars, FICO Scores, and Certified Financial Counselors to help individuals experiencing financial challenges
At FIGFCU, we understand that financial challenges don’t just affect individuals—they impact families, friendships, and communities. Sometimes that means a loved one may need a place to stay while they regain their financial footing. Welcoming someone into your home, whether it’s a child who is a recent college graduate, someone who has been laid off from work, or an individual who has gotten into financial trouble due to high debt, is a generous act. Still, it also requires planning and boundaries to ensure the arrangement works well for everyone.
Here are some thoughtful ways to approach welcoming someone facing financial hardship into your home while also protecting your own financial well-being.
Start with an honest conversation.
Before anyone unpacks a bag, sit down together and discuss expectations. Talk about how long they intend to stay, whether they can contribute financially and how much, and what household responsibilities they can take on. Even if they can’t pay rent, they may be able to help with groceries, childcare, or household chores. Putting agreements in writing can help avoid misunderstandings later.
Member tip: If your guest is struggling with budgeting, point them to our free Financial Wellness resources on our website. They can access our Education Center, Financial Counselors, and tools like a credit card payoff and debt consolidation calculator, which can help them create a realistic plan to get their finances back on track.
Set boundaries and house rules.
When your home becomes a shared space, privacy and routines change. Establish guidelines early, including quiet hours, use of common areas, and rules for overnight guests. Boundaries aren’t about control; they’re about maintaining mutual respect and peace of mind.
Protect your budget.
Your generosity should never put you at risk. Review your own budget to see what extra costs you can realistically afford. If you’re covering utilities or groceries, be sure to track these expenses carefully.
Member tip: While we know you’d only welcome people you trust to live in your home, be mindful of your personal information. Don’t leave your FIGFCU account information, credit card bills, passwords, account numbers, or PINs out in the open. An ounce of prevention can help keep honest people honest and protect your finances.
Be cautious about lending money.
Your guest may ask you for money. It could be a few dollars for an everyday purchase, or thousands to cover a debt or an unexpected expense, such as an auto repair. Regardless of the reason, be prepared with a response so you’re not caught off guard.
Member tip: If you decide to lend money, do so with clear expectations, including the fact that you may never have the money returned. First, make sure you can afford to lend money. If lending money puts your budget and ability to pay bills at risk, don’t do it. If you decide to lend money, put it in writing. Include the loan amount, a repayment schedule, interest (if any), and what happens if there’s a missed payment. When setting up a repayment plan, be realistic. Small payments over time may be a better path than asking for a single large payment. If you choose not to play bank, we may be able to help. Our Signature Loan can be used for any purpose. If qualified, your guest may borrow up to $40,000 with terms up to 60 months. Rates are as low as 9.99%*, far better than most credit cards. Remember, be very, very cautious about co-signing for any loan. If the primary borrower fails to pay back the money to the bank or us, you will be responsible for the amount owed.
Encourage independence.
It’s natural for your guest to lean on you, but the goal should be progress toward financial stability. Encourage them to set milestones like finding work, building an emergency fund, or paying off debt. Remember, there’s a fine line between encouraging and nagging. Tread lightly.
Member tip: Share information about our Certified Financial Counselors for Members. If your guest joins the Credit Union, they can meet with them to create personalized debt reduction or savings plans. If your guest needs help budgeting, suggest this free on-demand webinar to learn how they can build a better budget to help them reach goals and achieve financial independence. Another way your guest can move toward independence is by knowing their credit score and taking steps to improve it. Our Members can get a free FICO® Score every month in Tulee. Plus, there’s no hit to their credit report.
Respect emotional dynamics.
Financial stress often brings anxiety, frustration, or even shame. A little empathy goes a long way. Schedule regular check-ins to talk about how the arrangement is working for both of you. Open communication helps keep resentment from building.
Have a clear end plan.
Temporary living situations work best when they’re truly temporary. Agree on a timeline—whether it’s three months, six months, or another set period—and revisit it as needed. Having a plan helps both sides stay focused on long-term stability.
Final thoughts.
Welcoming someone into your home during financial hardship is a truly compassionate act. With clear expectations, healthy boundaries, and access to supportive financial tools, you can help your loved one while keeping your household financially and emotionally secure.
At FIGFCU, we’re here to support not just your finances, but your life. If you or someone you care about is facing money challenges, reach out to us—we can help build a path toward brighter financial days.
*APR = Annual Percentage Rate. APR is the annual rate of interest that is paid on an investment, without taking into account the compounding interest within that year. Rates are subject to change at any time. 1.00% rate discount is for a minimum of $1,000 monthly ACH Direct Deposit or Agent Net Check into a Farmers Insurance Federal Credit Union Checking Account and Automatic Payment/Folio Deduction as a repayment method to qualify. Rates are subject to change at any time.
