SG Budget Babe
Asked on 27 Dec 2019
What's a good gauge to have for this? What other considerations are there when considering how much to set aside?
I would suggest 20% as the max.
The minimum should be an amount that covers the monthly family expenses, while the remaining can be set aside as an emergency fund for them.
A typical range can be about 10-20%. But that of course varies alot depending on your income. Give what you can, and try to give what they need.
Some parents may require more due to medical conditions, or some parents may have their own retirement/cpf funds to support themselves. Situation-dependent, you could have siblings to help, or you have your own children to feed.
I will advise not to compare against others, afterall every family has their own bible.
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Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/
Next, understand the situation in the household - how much money is required to run the family every month? E.g. utility, bills, grocery
From there, evaluate your affordability. For a general guideline, it will be about 10% to 20% of your income. At the same time, talk to your parents to understand their needs and work out a number that works for both parties. At the end of the day, there is no perfect number to give.
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I would say 15% is a good portion.
But will need to be adjusted accordingly to needs and situation too.
If both are not working, depending on whether they have sufficient savings to lean back to, you gotta decide how much you can afford to give them without affecting your own family finances.
There isn't a number to represent how much to give to your parents because it is different for everyone. It depends on individual income and the type of lifestyle you would want your parents to live. It also depends if they are self-sufficient or not which would be based on responsibilities.
NO typical number, but if you want to set a floor to it, maybe pay a sum that covers the monthly utilites bill/groceries and/or misc. family expenses