as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what are the pitfalls of loaning money to friends or family? is there a right way to do it?
user
there are two levels to consider here: that said, before loaning/giving anyone money ask yourself if it is good for them.  if they have problems managing their money, or holding down a job, and you give them money, they are just going to come back for more later.  in this type of situation, you shouldn't give/loan them money.  but on the other hand, if a friend or family member has hit a rough patch and you know they are the kind of person that will be on their feet again soon, and you have nothing to lose, give them the money.
assistant