One in Four Americans Gave Money to Family and Friends in the Past Year
The rich and poor both give money to loved ones, just with very different results.
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When a loved one asks for money, it's hard to say no. A new study from the Pew Charitable Trusts quantifies just how often Americans pull out checkbooks for family and friends.
About a quarter of U.S. households gave or lent a median of $1,000 to friends or family in the past year, according to the study, which was based on interviews with more than 7,800 households. This flow of money— among friends, parents, children, and other relatives—represents a "hidden dimension of the financial system," said study author Diana Elliott, a research manager at Pew. "Transfers of money across household lines are really important for keeping families afloat."