Cornerstone #2: Family Lending. Part 2 or 4

1/9/ 2020
3:00 p.m.

To the right of Financial Foundation

you see Family Lending. This is a system for leveraging The Family Fund to invest in the success of the family. This could include investing in your family’s human capital through education, training, mentorship, etc. It could include investing in financial assets, such as cash-flowing real estate, or providing a down payment for a first home. It could be used to launch or expand a family business or refinance higher-interest debt so it can be paid off more quickly.
Family Lending serves another, perhaps less-obvious purpose. It gives younger family members an opportunity to learn and practice their money management. Do they want to apply for a family loan? Great, they will need to show they are saving first! Then they will have to apply for the financing they desire using a process that will require them to think through WHY they want that money and how it aligns with the values your family holds dear. (This could include productivity, sustainability, stewardship, etc.)
Family Lending provides valuable money management lessons. Young family members will get practice is paying back what they borrow! They’ll be responsible for determining their repayment schedule and replenishing the Family Fund. They’ll also have opportunities to sit on the Family Council and see how and why loans are approved—or not approved. 
To be continue : 
Cornerstone #2: Family Lending. Part 2 or 4 Cornerstone #2: Family Lending. Part 2 or 4 Reviewed by Anson Moore on January 09, 2020 Rating: 5

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