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816-Lancaster Farming, Saturday, February 21, 1998
\
Taking
Time
Patricia
Powiey
When Friends or Family
Ask for Money
How do you respond to a
friend or relative who asks to
borrow money or asks you to co
sign a loan? Lending money is a
business transaction with finan
cial risks Lending money to
family and friends, in addition
to being a business traction, is a
personal transaction and affects
relationships that are very
important to you. At its best,
lending money to a friend or rel
ative is a way to help someone
you love. At its worst, lending
money to a friend or relative
destroys a meaningful relation
ship
Before lending money to a
friend or relative, consider the
entire situation - your situation
and the situation of the person
asking for money. Will the
money solve the problem of the
person asking for help? How
will giving financial assistance
affect your present and future
financial situation.
Is money the problem or
the symptom?
When a person asks for a
loan, he or she thinks money
will solve his/her problem. And,
sometimes it does. For example,
when a person has had unex
pected expenses or reductions in
income, your loan helps that
person through the temporary
crisis You may even prefer to
make a gift rather than a loan
However, money may not be
the problem, but rather the
symptom of the problem Lack
of money may be caused by
chronically living beyond one's
means
When spending continually
exceeds income, the only solu
tions are to increase income or
decrease expenses. Life changes
are necessary to increase income
and/or decrease expenses.
Money problems also may be
caused by drug, alcohol, and/or
gambling addictions. If the
money problem is a symptom of
one of these, your loan, rather
than solving the problem, allows
this person to continue to ignore
or deny the real problem Some
clues that money is a symptom
of other problems are:
• The person has borrowed
from you or other friends and
family members before and not
repaid as promised.
• The person asking for
money is vague as to why he/she
needs the money
• The person doesn't want
you to tell other friends or fami
ly member he/she has asked for
a loan,
Can you afford to make a
loan?
Before lending money, look at
your financial situation. What
large expenses will you have in
the future 9 What changes
might you experience in income?
Can you really afford this loan?
Saying no may be difficult, but
not saying no may be even more
difficult
If you do make a loan, what
are your expectations for when /
and how the loan will be repaid?
Be clear about the expectations
of both the lender and the bor
rower. Put expectations in writ
ing. Be sure the loan document
includes the amount of money
you are lending; the interest
rate, if any; the date by which
the loan must be repaid; and
description of any collateral.
You may want to purchase a
form called a "promissory note"
at a stationery or business sup-
NEW BLOOMFIELD (Perry
Co) - Retirement, health con
cerns, excess debt, a desire for
more free time. All of these are
reasons why dairy producers
decide to leave the business.
Wether you are retiring and
selling cows, machinery and real
estate, or just moving from dairy
to another agricultural enter
prise, planning is the key.
Proper planning may help
avoid needless legal problems,
excess income and capital gains
taxes. Planning will also help
ensure the proper paperwork for
Social Security and Medicare
benefits.
"Exiting the Dairy Industry
in an Orderly Manner" is a pro
gram designed to help plan.
Everyone now in the dairy
industry will leave at one time
or another
ply store. If there is collateral
and/or if the loan is large, you
may want an attorney to pre
pare or review the lending
agreement to protect you in the
event of nonrepayment and/or
bankruptcy, divorce, or death of
the borrower.
It's your choice.
When a friend or relative
asks you for financial assis
tance, it's your choice. Think
through the situation - both the
financial and the emotional
aspects, what will the loan do
for your own and the borrower's
financial situations? How will
giving or not giving financial
help make you feel about your
self and about your relationship
with the person seeking help?
How might making or not mak
ing the loan affect your relation
ship with other family members
or close friends? Remember, it's
your money and your choice.
Extension Program Eases
Leaving The Dairy Business
If you are thinking about Sciences' Farm Management
leaving the dairy industry in the department will review tax
next five years, this program is implications of selling the farm,
for you. and/or cows, and how to proceed
The two day program will be to minimize the tax liabilities,
held on Monday, March 9 and saving as much of assets as pos-
Monday March 16, at the sible.
Walker Grange Hall, Mexico The program will also feature
(Juniata County), located 1.5 a presentation by a Social
miles off the Port Royal exit of Security field officer dealing
322 with Social Security and
The program will feature a Medicare benefits for those who
panel discussion by several are . or Uose to the age of
dairymen who recently left the retirement,
business. They will be dis- 1116 registration fee for the
cussing what advice you need to program is $2O for the first per
seek when making the transi- son from a farm, $l5 for each
tion from dairy production. additional person. The fee cov-
The program will also feature ers l unc h for both days of the
John Becker, a lawyer from workshop as well as educational
Penn State's College of materials. The program will run
Agricultural Sciences, who will roia 10:30 am - to 2:30 p.m
be reviewing the types of legal eac " -v
-advice needed and where to get Eor further information
quality advice pertaining to and/or registration, call the
agricultural and estate issues. Perry County Cooperative
The second day, Larry Extension Office at (717)582-
Jenkins, professor with Penn exb Registration
State' College of Agricultural deadline is March 3.
Foundry Day Arts And Crafts
BOILING SPRINGS (Cum- „ "Foundry Day" theme is'The
berland Co) - The historic vil- Roaring 20 s . There will be a
lage of Boiling Springs, talking tour of the village
Cumberland County, will cele- Exhibitors and townspeople are
brate the 12th annual "Foundry encouraged to dress in period
Day" Arts and Crafts Festival on costume of the 19205.
Saturday, June 6, from 9 a.m. to S P ecial featur f s m f ,ud ® an
4 p.m. The festival will feature anl ; 1( l ue fL
many talented members of the Unlimited Exhibit, and the Bird
Pennsylvania Guild of Rfhabihtators of Dillsburg
Craftsmen as well as some of the Children s activities, trout fish
most creative professional in %’ and flshm S wlll be
artists and crafts people from ottered.
throughout Pennsylvania and Boiling Springs is easily
near-by states. Line up on Front accessible between the mam
Street, along picturesque highways which includes 1-81
Children's Lake and Third ‘ and R° ute 15 - The w
Street, 100 booths will be filled located on Route 174, 15 miles
with the best crafts and fine arts southwest of Harrisburg, 5 miles
their creators have to offer. southeast of Carlisle and 15
miles northeast of Gettysburg
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