How to Help Friends Who are Bad with Money (2024)

This post is written by our regular contributor, Kristi.

We all have at least one friend or know someone in passing is bad with money.

They complain about never having enough money for groceries, but they come in with new clothes they bought with a credit card.

They laugh about not ever paying their bills on time.

They spend their money the moment they get it.

I’m not talking about people who are struggling to make ends meet but are trying their hardest, I’m talking about that friend who has both the means and ability to do better, but chooses not to.

Do you worry about that friend? Do you cringe at their financial mistakes?

Do you stay quiet or offer advice? What can you do to lend a hand?

How on earth can you help a friend who is terrible at managing their money without offending them?

Here are a few ways to offer support and advice friends who are bad with money management, without ruining your friendship.

Openly talk about your own mistakes

Sometimes it’s hard to start a dialogue about money with people who aren’t so great with their finances. If you see your friend struggling, strike up a conversation about your own mistakes. By admitting your own failures and talking about how you surpassed your own struggles, you can inadvertently give your friend advice or direction.

If your friend says, “I can never seem to pay my credit card bill on time,” tell them about the methods that you used to get that same problem under control. For example, you could say, “I had the same problem until I decided to automate my bill pay. It was such an easy change to make, but now I never miss a payment.”

Be a good example

Unfortunately, sometimes our own money-management skills dissolve when we spend too much time with people who make bad money choices.

Instead of letting their bad choices affect you, try to turn the situation around. Let your good example have a positive effect on their own choices. Pay your bills on time, don’t spend on credit while you’re out with them, and live below your means.

They will see how much easier of time you have it, and they may just decide that they want to emulate your financial success.

Suggest low-cost alternatives

If your friend says, “Let’s grab burgers and go see a movie,” say, “I have had the worst craving for spaghetti. Do you mind cooking here and watching a Red Box movie instead?”

If they want to go for a pedicure, suggest a DIY nail session at home. If your friend wants to go shopping, try to persuade them to check out that new discount store with you instead, or steer their focus in another direction altogether.

Find free things to do together

Remind them that you don’t have to spend money to spend time together. Find free festivals, go a walk together, find a new trail to hike, or simply sit at home and have a drink together.

Sometimes we feel as though we have to do something when we get together with friends. The truth is that real friends can simply enjoy each other’s company without spending $20 or more on each outing.

Use money management apps

If you want to help, but hate confrontation, a great passive aggressive way to show them how to manage their money is by using a budgeting or investing app in front of them.

Personal Capital, Digit, and Acorns are all fantastic apps that help you budget and save money. If they see you having a positive experience with your money through these apps, they may be more inclined to download the apps themselves.

If they ask for advice, give it

You can lead a horse to water, but you can’t make him drink. You can’t force your friend to make wise money choices if they aren’t interested in doing so. You can only do your best to show them through example and help them if they ask for help. If they do ask, great, help them with everything you have in your money-management arsenal.

Don’t force your wisdom on them though. It will just strain your friendship and cause resentment problems. If their money choices start to affect your own financial situation, then you’ll need to assess whether you need to take step back from that friendship.

Do you have a friend who’s bad with money management? What do you do to help them? Do you say anything or try just to lead by example?