Giving Unto Others: Private Financial Transfers and Hardship Among Families with Children.

Prior research shows that financial assistance from family and friends is an important source of support for families with children. However, research on financial transfers has largely focused on the recipients of transfers. In this study, using longitudinal data from the Fragile Families and Child Wellbeing Study (n~16,000 person-waves), we examine the association between the provision of financial assistance to family and friends and material hardship. Results from pooled regression and fixed effects models indicate that providing financial transfers is associated with an increased risk of hardship. The most economically disadvantaged groups, single mothers, those in the bottom income tertile, and black mothers, are the most likely to experience hardship after giving a transfer. These findings have important implications for understanding why families may have difficulty meeting basic and essential needs, and how social networks may exacerbate the challenges of escaping poverty and establishing economic self-sufficiency.