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[quote=Anonymous]While I agree with PPs that this is inappropriate behavior, her financial issues don't have to be indicative of "drug problems" or a "scam." Of course this can be the case, but there are a variety of other reasons that can account for her financial troubles. Perhaps her child or a close family member has been involved in an accident or has become seriously ill and requires expensive medical treatment.

At any rate, if she's been great with the children thus far, and you like her well enough, then it would be best to sit down with her and discuss the circumstances surrounding her request for the previous advances and her current request for the loan. It could be that she really needs the money for a sincere and innocent reason, and not for something vile and atrocious.

Sympathize with her circumstances, and explain to her that you're simply not capable, or comfortable, with continuing to advance her money, and offer to help her find assistance elsewhere if she really is in a bind.

Honestly, it would suck if you fired her and she really did need this position to aid in the medical situation of her child or relative, or for some other serious reason.

For nanny/employer, the relationship is much more personal than the employer/employee relationship developed in any other field of work. So, while you're not "responsible for her personal well-being," it's simply in good taste to take some level of interest in her life and well being, as she's playing an enormous role in your life by caring for your children.

In short, sit down with her. Discuss her reasons for needing this loan and the previous advances. If you find her reasons to your satisfaction, then explain to her that you're not comfortable with advancing money/giving out loans, but that you'll be more than happy to offer her help in any other way you can (e.g. offering her "date-night" babysitting, etc.)

Good luck![/quote]

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