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Older people have been hit from both sides by the Covid-19 pandemic and the recession:
Nest eggs are wobbling
Retirees could run out of savings
Workers face heightened health risks
Ages 55+ have very high unemployment https://trib.al/mMlQ5PJ
Nest eggs are wobblingRetirees could run out of savingsWorkers face heightened health risksAges 55+ have very high unemployment https://trib.al/mMlQ5PJ
As your parents get older and you get more established, they may turn to you for financial support.
While you may feel a moral obligation to help your parents, you first need to run through a basic checklist http://trib.al/mMlQ5PJ
While you may feel a moral obligation to help your parents, you first need to run through a basic checklist http://trib.al/mMlQ5PJ
Step 1: Know your own financial situation.
For that, you need a personal budget. Any decision about your generosity hinges on whether you actually have the money http://trib.al/mMlQ5PJ
For that, you need a personal budget. Any decision about your generosity hinges on whether you actually have the money http://trib.al/mMlQ5PJ
Giving money to your parents only makes sense if it affects your current lifestyle.
Itâs not a good idea if it would reduce your future lifestyle. Reducing your retirement contributions will cost you much more than getting takeout less frequently http://trib.al/mMlQ5PJ
Itâs not a good idea if it would reduce your future lifestyle. Reducing your retirement contributions will cost you much more than getting takeout less frequently http://trib.al/mMlQ5PJ
Borrowing isnât a good answer.
If you borrow to pay your parents, youâll put yourself at a financial disadvantage. It will reduce your credit score and give you less cushion for your own future money needs http://trib.al/mMlQ5PJ
If you borrow to pay your parents, youâll put yourself at a financial disadvantage. It will reduce your credit score and give you less cushion for your own future money needs http://trib.al/mMlQ5PJ
Going into debt or dipping into your own emergency fund carry similar risks.
The rule of thumb is to have six months of living expenses. With todayâs low interest rates, it would be cleaner for your parents to borrow the money themselves http://trib.al/mMlQ5PJ
The rule of thumb is to have six months of living expenses. With todayâs low interest rates, it would be cleaner for your parents to borrow the money themselves http://trib.al/mMlQ5PJ
Step 2: Consider the reason your parents need financial help right now.
One-off situations like essential car repairs or temporary assistance after a sudden job loss are fine. If your parentsâ financial need is chronic, itâs a different story http://trib.al/mMlQ5PJ
One-off situations like essential car repairs or temporary assistance after a sudden job loss are fine. If your parentsâ financial need is chronic, itâs a different story http://trib.al/mMlQ5PJ
If your parents have aâŠ
Gambling addiction (up to 10% of elderly)
Compulsive shopping habit (up to 5% of adults)
Then giving them money is a form of codependency and will hurt them. They need professional counseling http://trib.al/mMlQ5PJ
Gambling addiction (up to 10% of elderly) Compulsive shopping habit (up to 5% of adults)Then giving them money is a form of codependency and will hurt them. They need professional counseling http://trib.al/mMlQ5PJ
If, based on the above criteria, you decide that giving money to your parents isn't an option, you can still help them in other ways. You can...
Give your time
Drop off food
Pick up medicine
Do some repair work
Help them find other income
http://trib.al/mMlQ5PJ
Give your timeDrop off foodPick up medicineDo some repair workHelp them find other incomehttp://trib.al/mMlQ5PJ
So the answer to whether you should give your parents money truly depends on whether you have a budget and know what you can afford.
If you donât budget yourself, then you canât help your parents financially http://trib.al/mMlQ5PJ
If you donât budget yourself, then you canât help your parents financially http://trib.al/mMlQ5PJ
