SG Budget Babe
Asked by Anonymous
Asked on 03 Dec 2019
What is a good amount to give them? what's the percentage of your budget for this? what's the rationale behind it?
For me, I give about 10-15%. It depends on individuals actually.. But on top of that, other matters like meals outside or groceries or going out, I would just foot the bill. I am currently toying with the idea of depositing into their CPF though!
Top Contributor (Dec)
I started with 20% of my take home and have managed to keep it to that level so far.
Of course, I also supplement this by just outright buying the groceries once in a while, and also bringing them for a meal or two when I can.
Recently I'm starting to tinker with the idea of topping up my mom's RA as well, once she starts getting her CPF Life payouts, as she tends to keep my allowance in the bank which isn't really earning much. I do know that it's a one way trip for that, so I'm doing my maths on whether it's worth it, and if so, how much is a good amount.
I give to parents about 15% of my salary. The reasons are
My parents dont really noe how to use the money effectively. They will end up spending unnecessary stuffs if i give more(i used to give a lot more but i beg very hard to reduce).
15% is affordable after deducting housing, water + elec + gas bill, hp bills, internet, insurances, baby fund.
I tend to give some "bonus" like collectibles during festive session instead of cash so it can preserve the value better.
10% of my take home pay. My parents don't need the money and this is just a token to show my gratitude to them (my mum also hinted to me quite a few times that she was looking forward to me giving her allowance).
Actually if your parents are ok with it (and are financially sound) I feel there isn't a need to give allowance. Bringing them on a yearly holiday and treating them meals is better imo.
I give 10%, my mom seems pretty content with the amount. I'd give more if I could!
I give 10% every month. This is just me. Why? 1st of all they are still working. They do not want to take it initially about 25% of my salary. My parents want me to do something else such as save to invest, save to buy houses and etc. But of cause when my parents are no longer working, i will be giving them more. It is always up to individual and very subjective.
The most important thing is, you must start to give. Must build this habit early.
For me, it's 15% of my take home pay. I think % might not be the accurate assumption of what is the right amount to give as monthly allowance, as absolute figure would probably be better to measure.
I think if they are reaching 65, then it might be an idea to top up their CPF so it can fund their retirement with interest that's earned, which can be a decent proxy as well.
Top Contributor (Dec)
I give a fixed amount rather than a percentage of my salary.
(so technically the more i earn, the less percentage i will have to fork out)
not really because of savvy or financial reasons, I just didn't think too much when i started and its been like this since.
but every year during CNY, i do give a big angpow to both my parents. and that angpow is dependent on my financial wellbeing i guess...
I gave around 10%. But note that this amount, it is geared more towards the household expenses (ie. utilities, groceries etc) and it is generally handled by my mother.
Part of the reason that the amount is not much because my sisters are also giving them these allowances as well, in which they are about the same amount too.
While my mum is content with it, I have been trying to increase the amount from time to time but met with 'negativity' (more like worry) where she would always asked if I have enough and she will return me the excess money.
As such, I tend to give them more at special occassions (during CNY and their birthday) or footing for bills etc if we are out.
Firstly, I must say, I had the same question as you for the longest time and thanks to seedly, now I know what the average percentage now is - ard 10-20%.
I think a “good” amount really depends on your own expenses, what your parents really need , whether if you have other siblings giving as well and , perhaps most importantly, an amount you feel is “good”.
Personally, currently , I give 20% of my take home pay - 12.5% to my mum and 7.5 % to my dad. I can give a slightly larger portion now because I don’t have my own home at the moment so my expenses are relatively low. Also, my parents pay for groceries to make some of my meals and not to forget, water, electricity , internet
and home maintenance so I feel justified in giving this amount.
The reason why my mum gets a larger share is because she bears a larger burden of the household expenses.
And then we dive into the rabbit hole of the avenue of giving. I’ve dabbled in supplementary cards, cash and CPF topups and I’ve found cash and CPF topups to be best for me. Why not supplementary cards you ask? Because sometimes, it’s best not to know what your parents spend on. =)
Benefits of cash are that it’s liquid and therefore most available to them. This is easily accomplished by setting up a recurring standing instruction in your bank account. CPF topups are slightly more involved affairs previously but I believe you can now do through some banks as well.
Come 2020 though, all this is going to change. I’m going to get my home and this means I’ll be footing my own water and electricity bill. Home maintenance is for the first time coming into the picture. In short my expenses are going to rise . Additionally, my parents have now retired and are now receiving the monthly retirement handouts from the government. On top of all this, my sibling is contributing as well. Due to these reasons I’m going to decrease my giving to 10%.
On the one hand , I feel like I should go on giving. But on the other, practicality dictates that I should decrease the giving. Ultimately, It’s been 10 years since I’ve started work and I’ve been giving 20% during this time. My expenses are about to go up and unless augmented but a same size increase in pay, my monthly savings will plummet. Seems to me like a good time as any to decrease my giving.
Last words: manage expectations with your parents and let them know in advance of any changes and why. They will thank you for it.
Hope this helps but don’t sweat it. Everyone gives a different amount based on their family situation. You do you.
Its the thought that counts. I appreciate your heart to give!
Give a comfortable amount such that they have enough to spend/save and yet it allows you enough for the month
When I first started working, I give about 10% of my take home pay. I did discuss with my mum what would be a good amount. To her, she actually does not need the money as both of them are still working and earning money. It is more of an appreciation and an act of filial piety, giving back to them for raising me. I am considering topping into their Retirement Accounts but I would need to check if they have reached the maximum limit.
I give about 10% of my take home salary and this was after discussion with my parents about how much would be a good amount for them.
They would have preferred that I save the money for my own flat and future large expenditure since they are still working. Of course, this would definitely change once they retire, hence I'll have to start planning on supporting them more in the next few years!
It really depends on you and their financial state, really!
Ah yes, because they don't really quite need the cash right now, we put this cash into an investment plan instead.
I give them 10% of my monthly salary each! It really depends on how much you are comfortable with.
Dependso n your parents and the stage of life they are at. If they are working, it's likely that your allowance will be seen more as fillal piety over necessity. But if your parents are close to retiring or retired, then will be good to see how much you are comfortable in giving, without going into debt yourself! :)
I give about 15% of my take-home pay as I'm saving up for studies in the future and I don't wish to burden my parents with my future school fees. :)