How much money should you give to your parents? It's a complicated question, with a lot at stake. On the one hand, it can be hard to know how much your parents actually need or want from you—and on the other, you may be worried about setting a precedent that puts you on the hook for financial support months or years down the road. In this post, we'll lay out some practical advice for navigating this sensitive subject.
It's important to keep the lines of communication open.
Communication is an important part of any relationship. It's also important when it comes to money. If you don't talk about money, then you may have a hard time helping your parents when they need it.
Keep talking about what's actually going on in terms of finances: this means talking openly and honestly with each other about how much money is coming in and going out—and why. It doesn't matter if one parent makes more than the other; what matters is that both parents feel comfortable enough to bring up the topic at any point during their discussions together. The best way to do this is by asking questions like “How was your day?” or “Do we have enough food for dinner tonight?” because these innocuous questions can lead naturally into conversations where they discuss everything from daily expenses (such as groceries) all the way up until retirement planning. These kinds of conversations may seem awkward at first, but once they become routine parts of everyday life then no one will even notice anymore!
You shouldn't feel guilty about giving your parents money, but it's important to consider how much you can manage each month.
Whether or not you give your parents money is a personal decision. It’s not about what other people do, or even what the so-called “rules of etiquette” say. What matters is that your decision aligns with your own values and goals in life. Before you decide how much money to give your parents, it's important to consider your own budget and financial situation. If you're struggling to make ends meet—for example, if you have student loans or other debts that are eating into your cash flow—you may not be able to give as much as you would like. On the flip side, if you're financially stable and enjoying a comfortable lifestyle while saving some money each month, then gifting money won't cause too much of an impact on your bottom line.
If there's any question about whether or not it's appropriate for you to give a certain amount of money each month (or year), ask yourself these questions:
- How does this fit into my overall budget?
- What expenses will this cover for them? Can I cover those expenses on my own and still get by?
- Are there other things I want/need first before giving away extra cash?
Consider setting a budget for how much you give them each month.
If you're still not sure how much money to give your parents, consider setting a budget for how much you give them each month. That way, they can plan their spending accordingly and you won't be surprised by the amount of cash they are spending on themselves.
For example, if your parents typically spend $500 a month on groceries and utilities and $100 per week eating out at restaurants or grabbing coffee, then maybe you could set aside $250 for them each month. If that number seems too high or low for you though (either because it doesn't seem like enough or it's too much), consider adjusting it to something that works better for everyone.
Know that parents often want to pay back the money they receive from you.
You might be surprised by how many parents feel guilty about accepting money from their children. They often feel like they should be able to take care of themselves and that their kids shouldn't have to foot the bill for them. It's important to keep this in mind when you're deciding whether or not to give your mom or dad some cash. If they take it, they may feel bad about it later on, so make sure that you don't just hand over money without thinking through what you'd like them to do with it first.
At the end of the day, it's up to you whether or not you give your parents money. You shouldn't feel guilty about giving them money if you can afford it and would like to help them out. At the same time, however, make sure that you set a limit for how much you're willing to give them each month so that they don't become too dependent on your financial help. It's important to keep in mind that they may want to pay back what they borrow from you—but even if they do, there's no guarantee that they'll be able to do so in time for these payments not to affect your own finances negatively.
-The NestedFunds Team