Asked on 12 Jan 2020
Where do you park the money you give your parents when calculating finances?
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.
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/
Here is everything about me and what I do best.