Ever been asked by your adult child to co-sign a loan? You’re not alone. Many parents face this pivotal decision when their children take their first financial steps—whether it’s buying a car, securing a student loan, or getting approved for a credit card. On paper, it feels like the supportive thing to do. After all, what parent doesn’t want to help their child succeed?

But here’s the hard truth: co-signing a loan is more than a gesture of love or support—it’s a legally binding financial commitment. One that can come with lasting financial consequences if not handled with eyes wide open.

Before you sign on that dotted line, there are some essential things you need to know. Let’s break it down together, so you can make an informed decision that protects both your finances and your relationships.

1. Check Your Motives: Are You Saying Yes for the Right Reasons?

Let’s be honest—guilt, pressure, or fear of conflict are common reasons people agree to co-sign. But these emotions shouldn’t drive your financial decisions.

Ask yourself: