Tyler Perry is no stranger to making tough decisions. The actor, director and producer, best known for his "Madea" franchise, has strategically created a media empire that turned him into a billionaire, according to Forbes.
But in a recent interview that’s making waves online, the 55-year-old entrepreneur revealed that he had to make tough decisions on the personal front too, including financially cutting off some members of his family.
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
- Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
“[My aunt] said she wanted a job. She would always call asking for money. I said, ‘Okay,’ I would send her the money,” Perry explained on an episode of Den of Kings on YouTube. “But then I was like, ‘Listen, I want to help you. I want to help you build this thing, not be welfare to you. So, let me give you a job.’”
When his aunt failed to show up for work, he said he had no choice but to fire her and cut her off financially. “You want me to hand you the money, but you don’t want to work for it,” he said. “See, that doesn’t work for me.”
Perry’s decision may seem extreme, but it’s one many Americans can relate to — especially those navigating the complexities of financial boundaries with family.
Family welfare
You don’t have to be a billionaire for your family to expect some financial assistance from you. In fact, lending or giving money to people in your social network is surprisingly common. According to community finance platform SoLo’s 2025 Cash Poor Report, 43% of people have borrowed money from friends or family members over the past year.
Perhaps the most common form of family financial support is from parents to adult children. It turns out that 46% of Gen Z Americans (ages 18 to 27) rely on financial assistance from parents and family, according to new research from Bank of America’s Better Money Habits team.
Many of these financial arrangements end badly. A survey by CreditCards.com found that 42% of people who loaned money to their friends and family didn’t get paid back and roughly a quarter of these lenders say the loan damaged their relationship with the borrower.
With this in mind, avoiding such loans could be the key to a healthy and durable relationship with everyone in your circle. However, if you feel compelled to offer some financial assistance to a loved one in desperate need, make sure you set clear expectations to preserve the relationship and your own financial security.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
Setting clear boundaries
Whether you’re borrowing or lending money to a loved one, setting expectations upfront can help you both avoid damage to the relationship.
The first step, perhaps, is to never offer more than you can afford. "Ask yourself: Am I really in a position to be gifting money right now?," Wendy De La Rosa, an assistant professor at the Wharton School at the University of Pennsylvania, told NPR.
If you believe your friend or family member is asking for too much, politely turn them down and honestly explain the impact this loan or gift could have on your own financial stability.
If you can afford it, it may be better to offer the money as a gift rather than a loan. This minimizes the pressure on the borrower and could help you sustain the relationship.
However, regardless of whether your assistance is in the form of a loan or a gift, formalize the arrangement in a written document. This is because loans and gifts between friends and family can have tax implications.
Gifting more than $19,000 per person per year could make you, not the receiver, subject to the federal gift tax. There are higher limits for married couples and lifetime limits for all individuals that you need to be aware of.
A written document with all the details should help you and the receiver plan for these tax implications and stay on the same page about the arrangement to avoid disagreements in the future.
What to read next
- Are you richer than you think? 5 clear signs you’re punching way above the average American’s wealth
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and ‘anyone’ can do it
- This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchase. Here’s how to buy the coveted asset in bulk
- 22 US states are now in a recession or close to it — protect your savings with these 5 essential money moves ASAP
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
This article originally appeared on Moneywise.com under the title: Billionaire Tyler Perry just revealed why he cut off his family financially — refused to be ‘welfare.’ Do you agree?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.