Should I lend money to a friend?

Concerns & risks

A friend asks to borrow money and promises to pay you back soon.

Money can strain friendships.

Causes & evidence

Informal loans often aren't repaid on time.

What to do

1. Decide if you could lose it.
2. Agree on terms in writing.
3. Consider giving a smaller gift instead.
4. Avoid sending through scam-prone channels.

Common mistakes: Common mistakes: lending money you can't afford to lose. Only lend what you could treat as a gift if needed. Agree on the amount and timeline clearly, ideally in writing. Saying no politely is okay. If you do lend, talk about what happens if they can't repay on time, so nobody is surprised. Some people choose to give a smaller amount as a gift rather than lend, which protects the friendship. Keep it out of group chats and social media, and stay kind either way. If it's someone online you've never met, it may be a scam: see romance scams.

Speed Man tip: Write down the amount and date. Clarity protects friendships.

Wrap-up: Lend what you can lose. Write terms. Consider gifting.