SG Budget Babe
Asked on 12 Jan 2020
Where do you park the money you give your parents when calculating finances?
Yes, as long as it comes out of your pocket/bank account it's considered expenses. Good to have a talk with your parents to have a feel how much to give :)
I would. Even if something happens to me, I still want to be able to keep up my responsibilities of supprting my family, including allowance to parents.
We park in a separate bank account (POSB Passbook Savings) with three of our names. My mom is tech noob, so she needs to have her passbook for her peace of mind (i.e. able to see her money there :p)
We treat it as an emergency health fund for large medical expenses. I do a standing instruction monthly transfer, so I don't need to keep remembering whether I've given them.
Also, because you really don't want to get into I-gave-you-no-you-didn't squabble. As they age, I'm also aging. Memory's failing all of us.
And I treat this as part of my expenses.
Yes. Any cash outflow is an expense, and that includes forced savings for me. I get it from the term "Pay yourself first".
I would put it under the 3-6 months of expenses in case of emergency as I feel that regardless of any emergency, I should be solely responsible for it and not to let it affect our parents. It is like how our parents treat us when we were young. They will still give us anything and everything even though if they encounter any emergencies.
I will include it as part of expenses and also as rainy day funds. It is still important to support your parents, especially if your allowance means alot to them.
Yes I consider that as expense. And i also consider this expenses for emergency fund. I believe my parents can live without my allowance but I prefer to have more buffer for my emergency fund.
Your rainy day funds refer to fixed expenses, so if your parents rely on that allowance to get by, then yes you should be counting that into your emergency funds.
Yes I do count that in as part of my rainy day funds, even more so if they are my dependents.
Yes, I treat it as a fixed expense in planning my cashflow. Herer is a guide on understanding our cashflow for the purpose of differentiating between a fixed expense and a variable expense: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/
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