How to keep track of money you lend to friends and family
The trouble with lending money isn’t usually the money. It’s that six weeks later nobody remembers whether it was $40 or $60, or whether half of it already came back. A record you keep on the day fixes that, and it doesn’t need to be complicated.
What to record every time
Every time money changes hands, write down:
- Who it’s with.
- How much, and in which currency.
- Which way it went: you lent it, or you borrowed it.
- The date, and a few words on what it was for.
- When it’s due back, if you agreed a date.
- Every repayment, even partial ones, with the date.
That’s it. With those six things you can always answer “who owes what” in seconds.
Three ways to keep track
A notes app
Fine for one or two loans. It breaks down when repayments come in parts, because you end up rewriting the balance by hand, and nothing reminds you when something is due.
A spreadsheet
Good if you like spreadsheets. One row per transaction keeps the history honest, and a running total per person shows the balance. It’s less handy on your phone, which is where you are when you pay for dinner.
A ledger app
Built for exactly this: you add an entry in a few seconds, it keeps the balance for each person, reminds you when something is due, and keeps the history. ClearOwe works this way, with every amount kept on your phone and encrypted.
A simple spreadsheet layout
If you go the spreadsheet route, one row per transaction works best. Never overwrite a row; add a new one for each repayment.
| Date | Person | What for | You gave | You got back | Balance |
|---|---|---|---|---|---|
| 8 Sep | Sofia | Lisbon flights | $184.00 | $184.00 | |
| 22 Sep | Sofia | Paid back | $60.00 | $124.00 | |
| 3 Oct | Sofia | Movie tickets | $34.90 | $158.90 |
The balance column is just the previous balance, plus what you gave, minus what came back.
Habits that keep the numbers right
- Record it the same day. Memory is worst exactly when it matters.
- Keep history, don’t edit it. If something was wrong, add a correction rather than changing the past.
- Keep currencies separate. A €20 coffee run and a $150 cab don’t add up to anything meaningful.
- Settle regularly. Small balances cleared every few weeks never turn into awkward big ones.
- Share the record. When you remind someone, showing the dates and amounts ends most debates before they start.
Things count too
Books, tools and chargers go missing the same way money does. The same habits work: who has it, since when, and when it should come back. See how to keep track of things you lend.
Common questions
What’s the easiest way to track money I lend?
Write it down the moment it happens, with who, how much, when and what for. A notes app works for a handful of loans; once you have several people or partial repayments, a spreadsheet or a ledger app keeps running balances for you.
Should I track small amounts like coffee or a cab?
Track them if they add up or if they’re with the same few people. Small amounts are exactly the ones everyone forgets, and they’re the ones that cause quiet resentment.
How do I track money in different currencies?
Keep each currency separate. Converting everything into one currency hides what’s actually owed and changes with the exchange rate. Settle each currency on its own, or agree a rate when you settle.