When you’ve had long-term friendships, it’s natural that things will ebb and flow financially. It’s normal for friends to ask each other for money advice every once in a while. But if you’re starting to see a trend where you’re more financially savvy in comparison, it can be challenging knowing how to help friends who can’t seem to get their own finances together.
“Naturally, those who manage their money well are often better off financially,” said Dmitriy Aseev, payments technology developer at JPMorgan Chase and author at Money Knack.
He said this can unintentionally create awkward situations with friends who may not have the means to keep up but may feel pressured to maintain the same lifestyle or participate in costly activities. “One thoughtful approach is to openly acknowledge these differences and handle them with empathy and understanding,” he explained.
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Below are some approaches you can use to help guide your friends in managing their money when you’re the financially savvy one.
Start With Simple, Non-Judgmental Conversations
One of the best ways to help friends who are less financially savvy is by starting conversations that feel approachable and judgment-free, said Shirley Mueller, finance expert and founder of VA Loans Texas.
“In my experience, many people shy away from managing their money because they feel embarrassed or overwhelmed,” she explained.
She said sharing your own financial journey, including your wins and mistakes, to make the topic relatable and less intimidating.
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Introduce Tools and Resources That Empower
Mueller said helping friends discover tools like budgeting apps or podcasts tailored to financial literacy can be a game-changer.
“In my work with clients, I’ve seen how apps like Mint or YNAB make budgeting accessible and even fun,” she said. “Suggest they start small, like tracking discretionary spending or setting a weekly spending limit.”
She also suggested offering resources like a book recommendation or a free webinar can also gently guide them toward learning without feeling like you’re pushing advice on them.
Encourage Actionable, Personalized Steps
“Help them focus on simple, actionable steps tailored to their specific financial situation,” Mueller said. Smaller steps can help your friends work on their finances without feeling overwhelmed.
“For example, I’ve often encouraged friends to track their expenses for just one week to identify spending patterns. It’s a small, manageable step that can spark bigger changes without feeling daunting,” Mueller said. Or say a friend struggles with saving. If so, encourage them to automate $25 a week into a savings account, Mueller recommended. “If debt is an issue, suggest tackling the smallest balance first to build momentum,” she said.
And it’s important to not overwhelm them. “The biggest mistake is overwhelming them with too much advice at once. Keep it practical, achievable and focused on building confidence so they’ll feel empowered to manage their money independently over time,” she said.
Be Mindful of the Financial Dynamics in Your Friendships
“Of course, those good with money can share their knowledge with friends and lead by example, showing how discipline and smart financial habits can lead to success,” Aseev said. “But there’s another, often overlooked, way they can help: being mindful of the financial dynamics in their friendships.”
He noted empathy is key here. “For instance, realizing that what may not feel like a strain for you can be challenging for them,” he said. He explained that suggesting affordable alternatives to expensive restaurants or trips, for example, can ease any unspoken discomfort.
“It’s also important to avoid assumptions, like splitting the bill equally when your meal was significantly more expensive,” he said. Instead, he recommended taking the initiative to suggest that everyone pay only for what they ordered can make things feel fairer and more comfortable.
“Small gestures like these can go a long way in ensuring friends don’t feel pressured to spend more than they’re comfortable with or can afford,” Aseev explained.
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This article originally appeared on GOBankingRates.com: 4 Ways To Help Your Friends Manage Their Money When You’re the Financially Savvy One
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