Remember when borrowing money from your parents meant a guilt trip, not a 6.4% APR? Well, welcome to Georgia, where mom and dad apparently moonlight as Wells Fargo—just with more casserole and fewer hidden fees.
MarketBeat.com asked parents how they handle family loans, and it turns out the “Bank of Mom & Dad” is tired of being a charity. Nationwide, the average parental interest rate clocks in at 5.1%. But in Georgia, a state that clearly believes in pulling yourself up by the bootstraps, parents have decided if junior wants gas money, it’s going to cost him just below credit card levels of interest. That’s right: Georgia moms and dads are charging 6.4%, enough to make American Express nod in respect.
And Georgia isn’t even the worst. Nebraska and Oregon parents are basically running mob-level loan ops at 6.8%. Mississippi (6.5%) and Arkansas (6.3%) also made the “Top 5 States Most Likely to Ruin Thanksgiving Dinner Over Fifty Bucks” list.
The survey also revealed the fine print of these family “loans”:
- Nearly a third of Georgia parents won’t lend more than $100.
- About 21% want repayment in a month. Because nothing says unconditional love like a deadline.
- And 14% admit lending money wrecked their relationship with their kids. But hey, at least they earned a solid 6% return while the relationship crumbled.
Of course, parents insist it’s not about greed—it’s about inflation. Groceries are expensive, gas prices sting, and apparently, so does loaning money to your own flesh and blood.
So next time you ask your Georgia parents for help, just remember: they’re not mad, they’re just disappointed… and charging interest.
B.T. Clark
B.T. Clark is an award-winning journalist and the Publisher of The Georgia Sun. He has 25 years of experience in journalism and served as Managing Editor of Neighbor Newspapers in metro Atlanta for 15 years and Digital Director at Times-Journal Inc. for 8 years. His work has appeared in several newspapers throughout the state including Neighbor Newspapers, The Cherokee Tribune and The Marietta Daily Journal. He is a Georgia native and a fifth-generation Georgian.
