I read this article: MSN
Summary: The author started a "Friends Emergency Fund" during Covid, when she couldn't be there in person to offer support; she lived around the poverty line for a few years, and now that she's financially secure she continues the fund.
It got me thinking about an idea I've kicked around for several years - an account to be used for friends who are in temporary trouble, with the understanding (no legal stuff involved) that they will pay it back if and when able. We did something like this years back; a friend was in college, getting a degree which would support a career and one part of the government failed to send him a form that he needed to prove to another part of the government that he did in fact qualify for financial aid. So he couldn't pay tuition and the needed course wasn't offered again for a year. We covered the cost of what the government failed on, with the understanding that he would pay it back (no interest) with earnings from the job that he would have one year sooner than if he didn't take the course immediately. Spoiler: It worked as planned.
Anyone do either of these approaches? Hers is more gifting; my idea is gifting with the idea that the money would be repaid if and when possible, and if the account went to zero then that's the end of it (until and unless money came back at a later time).
Summary: The author started a "Friends Emergency Fund" during Covid, when she couldn't be there in person to offer support; she lived around the poverty line for a few years, and now that she's financially secure she continues the fund.
It got me thinking about an idea I've kicked around for several years - an account to be used for friends who are in temporary trouble, with the understanding (no legal stuff involved) that they will pay it back if and when able. We did something like this years back; a friend was in college, getting a degree which would support a career and one part of the government failed to send him a form that he needed to prove to another part of the government that he did in fact qualify for financial aid. So he couldn't pay tuition and the needed course wasn't offered again for a year. We covered the cost of what the government failed on, with the understanding that he would pay it back (no interest) with earnings from the job that he would have one year sooner than if he didn't take the course immediately. Spoiler: It worked as planned.
Anyone do either of these approaches? Hers is more gifting; my idea is gifting with the idea that the money would be repaid if and when possible, and if the account went to zero then that's the end of it (until and unless money came back at a later time).