You Enable Instead of Help Your Friend or Family Member
When you lend money to friends or family members, you give them an easy way out of their financial problems, instead of helping them work through their issues.
For example, your cousin may ask for some money to pay off her credit card bill, but she needs help learning how to make a budget. In that situation, refuse the loan, but offer to help your cousin create a budget or to look for alternative forms of income.
Pro Tip: Put your friends or family members in a position that improves their financial situation as well as their understanding of money management in order to truly help them.