8 Ways to Give Financial Help on a Low Income
I have zero problems with loaning people money. I know. Personal finance people tell you not to do it. Totally get that. More often than not, one party ends up butthurt or worse, broke af. But I think we’re approaching how to give financial help to our friends and family all wrong.
What if we stopped approaching giving our people money as a loan and started to look at it like mutual aid? If we stop expecting to be paid back and we stop thinking we have a right to dictate how someone spends the money we give them?
We need to start having a more nuanced look at giving the people we care about money. We need to talk about how to help when you don’t have much to give. About how to set boundaries so you aren’t taken advantage of. About how to ask for financial help.
So obviously, I’m going to talk about it.
Check your financial boundaries.
If I want to help someone financially, and I have the means to, then I’m going to do it. A loan puts out expectations, and if those expectations aren’t met one or both parties is worse off. That is not how I want to feel about money.
By removing the expectation of repayment, it removes the power dynamic of, “You owe me.” Do you know how much that sucks when you’re in tough times? That you’re already struggling and now you have someone else to feel beholden to?
Look, I get giving people money can get sticky. People take advantage but you know what, that’s life right? If someone constantly never repays you, either stop giving them money or stop expecting it to be paid back. You’ve seen their pattern and if you choose to keep engaging then it’s on you too. You can’t expect someone to respect your financial boundaries if you don’t hold them up yourself.
If the money in question is not money you can afford to lose completely, you are not in a position to help out like that and there’s nothing wrong with it.
How to help with little to no money.
I’m low-income. I don’t have the ability to give large sums of money or even small sums of money sometimes, but I still want to help.
What can assistance look like when it doesn’t involve a lot of money?
*Pay a small bill.
Sometimes it’s the smallest bills that put people over budget. If you can pick up something like a cell phone bill or light bill, that helps immensely and doesn’t overstretch your own resources.
In a study done by Move.Org, they found, “On average, residents pay $110.76 for electricity, $72.10 for natural gas, $70.39 for water, $85 for cable TV, $60 for internet, and $14 for trash and recycling.” The study was insanely informative and I highly suggest taking a look through to see how your own state compares.
Now, I might not be able to pay all of that for someone. But, I could cover an internet bill comfortably. If that $60 means someone can apply for jobs online or their kids and do homework, I will happily give it.
An easy thing you can also do is help your people negotiate better rates as well. Some people are completely unaware that students get discounts on phone plans or that you can bundle Hulu, Showtime, and Spotify for $5 with the same student ID. Some phone plans give free access to streaming services as do some credit cards. Many internet and cable providers will offer discounts if you call and ask and power companies might have assistance programs for low-income households.
*Offer Gas, Uber, or Bus money.
Gas is one of those expenses that’s hard to nail down in a budget because it’s at the whims of…well it’s at the whims of a lot of things that are too complicated to break down right now. Because the price can fluctuate so much, what someone has planned to spend can be less than what they actually need. If someone only has $30 available for gas for the week but gas prices put it close to $40, that extra $10 has to come from somewhere. That somewhere typically being other flexible budgets like food. I don’t know about you but I never want someone to have to choose between getting to work or being able to eat.
For people that don’t have cars, Uber, Lyft, and public transportation may be the only options. Those costs also add up fast. Especially for those working in downtown or tourist areas or that have to commute during peak times. Those peak hour rates can skyrocket leaving people who are just trying to get to work stranded. Uber and Lyft have gift cards, which are perfect for those nervous to give cash. You can buy your friend a bus pass to cover the whole month too instead of having to pay the fare every day.
*Help them budget.
This one is completely free and will help them long after the snug times have passed. Some people just don’t know where to start with money management. It’s hard to jump in when times are tight because everything feels overwhelming. Couple that with people only finding money advice from mainstream sources that tend to shame and condescend and the thought of budgeting can have a foundation not conducive to positive outcomes. Take an hour and help them create a plan for their money. Help them get a framework and support them by answering questions or checking in during the week to see how that plan is going.
*Help them set up a side hustle.
When you’re in survival mode, sometimes there is no time to look into side hustles. Having an outside perspective can give some clarity and help form a plan to get extra money coming in without becoming overwhelmed. Help someone figure out what kind of side gigs they would most prefer and that would work with their lifestyle. Help them create their profiles and gather documentation if they need it. Let them use you as a reference or give them their first testimonial. Offer to go with them on their first block of Instacart pick-ups for support. This is something that costs no money and can help set someone up with a steady stream of income for as long as they need.
*Help them apply for assistance programs.
If you’ve never applied for social assistance programs, be extremely grateful. Most assistance programs are confusing, repetitive, and invasive af. It can feel defeating and overwhelming when you have to figure it out by yourself. Offering to help someone figure out how to apply for Social Security Insurance or SNAP serves two purposes. It gives them a second set of eyes to double-check forms and it’s a little moral support in the process. You can also take a few minutes and do research on other programs they might qualify for like rent assistance, free student lunch applications, childcare subsidies, and much more.
*Offer to babysit.
Just for funsies, go look up the average price for a week of childcare in your city. Go ahead. Okay, have you put your eyes back in your skull yet? Now imagine trying to swing that during hard financial times. Yea. Massively stressful. Do you know how much it helps to have reliable and affordable childcare?
It frees up time for parents to catch up on errands, doctors appointments, and other responsibilities that get pushed aside.
It allows parents that are in school a chance to catch up or get ahead on school assignments.
It greatly helps single parents.
You get to spend quality time with the kids in your life which helps foster their support system outside of their parents or siblings.
Babysitting gives parents a chance to catch up on rest. Take the kids for 2 hours to let those people nap. They need it.
*Do a grocery haul or make some easy freezer meals.
Food is a love language of mine. I come from a big Mexican family. If you’re in any of our homes, you’re going to leave well-fed. Part of why we do this is you never know who’s going hungry because people don’t like to share that they can’t afford food. It can feel shameful and embarrassing. With inflation increasing the price of everything right now, grocery budgets are not going as far as they used to which means people are either going without or having to ration food to make it last. That is why dropping by with $40 worth of groceries or two or three bulk meals someone can eat all week is a big deal. It’s a small expense but makes a big impact. You’ve not only saved them money but also time and stress.
*It’s not a loan, it’s mutual aid.
Wtf is mutual aid? It’s basically looking within our communities for assistance on things like housing, medical care, food, child care, and so many other things. These communities can be physical, like in the immediate area where you live, or online. There’s no board of directors and is basically volunteer status so the community members all have the power to participate.
Remember during the start of the pandemic when the grocery stores were being wiped out of everything? There were groups popping up all over the place giving people extra food, baby formula, medications, etc. That is mutual aid. It’s having something someone needs and giving it directly to them. It functions differently than charity because charities tend to need tax classification, people need to fill out forms to apply for aid (which can be extremely invasive) and not all the money actually goes to the people a charity has claimed to help. Mutual aid is truly by the people for the people.
We take care of each other.
It’s easy to forget that making a change in our communities can come from small, inexpensive actions. Yes, I would love to be able to give my friends $5,000 to cover having to move or pay their childcare for the month. Unfortunately, that is just not in the cards with my income.
I can help in other ways though. I can do things that give them back a bit of their budget and a bit of their time. When someone is in that survival space, the pressure is always on and that can impact the decisions they make. Helping in any way, big or small, gives a little pressure release so they can regroup and forge ahead.
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