The Bank of Mom and Dad Is One of America's Largest Lenders

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Hundreds of billions move between family members every year. Almost none of it is structured. Here's why that matters.

Every year, families quietly lend each other an estimated $200-400 billion - for first homes, businesses, education, and bridges through hard seasons. Taken together, the Bank of Mom and Dad rivals the country's largest consumer lenders. It has simply never had an operating system.

The problem isn't the lending; it's the informality. Undocumented loans create tax exposure, strained relationships, and estate-planning headaches. Structuring these loans - with clear terms, AFR-compliant interest, and automated repayment - turns a source of friction into one of the most powerful, lowest-cost tools a family has.