As the name suggests, PayPal friends and family is nothing but just a lovely feature to send money to your dearest ones. Exactly what you have to do is just select the "Friends and Family" option while sending money to anyone of your contact. Doing so, you will be able to avoid the fees and charges. Else, your transaction will be considered as "Good and services" payment which attract additional fees

More info:- Paypal Friends and Family |How to add money to Paypal