Still taking money from your parents? Its time you stopped depriving them of a future.

TomorrowMakers ™

Still taking money from your parents? Its time you stopped depriving them of a future.

24 August 2016
If you are earning and still taking money from your parents, here is why you should stop immediately.

You are independent in so many ways. Even if it is not given to you, you demand it. You want to choose the clothes you wear, the food you eat, the time you sleep, the company you work with, the mode of transport that’s most comfortable! And yet, when it comes to money, despite having secured a well-paying job, you don’t mind asking your parents for money.

In the little things, like going out for dinner, or buying clothes, you’ll never ask your parents- because you’re independent- but when it comes to paying for your education, or your car, or your wedding, your stand tends to soften.

Sure, you promise you will pay them back, and most of the time, you do, but sometimes they waive it off saying, “Oh, don’t worry, it’s a gift!” or “Give it to me when I need it!” and so, you end up not giving the money back.

But remember, every rupee they spend on you today is one less rupee available to spend on themselves.

Your parents may support your ambitions without ever questioning them but that doesn’t mean you shouldn’t think about their wellbeing in their twilight years.

As an increasing number of couples over the age of 45 are retiring or at least thinking about an early retirement, financial planning for older parents with young children is becoming tricky. This is because children’s education and careers are now coinciding with parents’ retirement plans. This is also because the average childbearing age has increased in the past few decades as more and more couples are choosing to not have kids as soon as they get married leading to more and more DINKs or Double Income No Kids families.

Related: Is your child your retirement plan?

Read on to learn some smart money moves to give your parents the financial freedom by taking control of your own finances.

Don’t forget your parents are growing old

Most people don’t discuss death and wills at the dinner table. How many people really plan for retirement in their 20s and 30s? However, age catches up with you without warning, and when it does you need to be prepared. Don’t forget old age is accompanied by problems: diseases, unexpected medical expenditures, faster wealth erosion, etc. As a family you need to sit down and ask each other the tough questions. By ignoring the problem, you can’t make it go away.

Related: Estate planning; 10 things to do before you die

Know where you are before you start financial planning

Make a complete list of your incomes, expenses, cash flows, assets and liabilities. Get your finances under control. Stop asking your parents for money for everything unless it is a real emergency. Wrong investments, bad money management, and unnecessary expenses should be curtailed in order for this to work.

Related: Financial Planning for Dummies: a 7 step guide

Prepare for medical emergencies and routine costs alike

You will leave no stone unturned to care of your parents and will do whatever you can to get them quality healthcare. But rising medical expenses can eat into your parents’ retirement fund, and in case they do not have one, it can cause a financial burden on you and your spouse. To be able to afford suitable healthcare, you need health insurance. While it’s definitely true that the older you get, the more expensive health insurance gets, there are some insurers who offer special plans for older citizens,

Related: Features of new age health insurance plans in India: innovation and ease

You yourself cannot be your parent’s retirement plan; they need to have their own finances to support them, even if you are going to be around to care for them.

For your part, you can ensure that they have the best possible retired life by helping them save and invest. You can ensure that your parents can enjoy a seamless transition from a successful career to a wholesome retirement by understanding what role you need to play in making that happen.

To get you started, here is:

 
 

MOST VIEWED CONTENT

Simple ways in which you can diversify your financial portfolio

Simple ways in which you can diversify your financial portfolio

As an investor, diversification, when done sensibly, helps you balance out risk and optimize returns. Here are some useful tips on diversifying your financial portfolio across assets.

7 Must-have things for a frequent traveller

7 Must-have things for a frequent traveller

All smart travellers know that there are certain things they must take with them to ensure their journeys are enjoyable, safe and stress-free.

5 things you need to know about the NITI Aayog lottery

5 things you need to know about the NITI Aayog lottery

Still wondering if you should #GoCashless? This lottery scheme will help you decide.

What does it cost to educate your child in India [Infographic]

What does it cost to educate your child in India [Infographic]

Education is a gift we all want to give our children, but as it gets costlier every year, it becomes more and more essential to plan our financial from the start to ensure that we can afford to send them to quality institutions.

Locking your Aadhaar card biometrics can prevent misuse

Locking your Aadhaar card biometrics can prevent misuse

Your Aadhaar card contain sensitive data that only you should be able to use. So how do you keep this information safe.

Investing in Money markets vs capital markets

Investing in Money markets vs capital markets

Are money markets and capital markets the same thing? How do they work? Here are some things you must know about the two.

Best Destinations in India for every budget

Best Destinations in India for every budget

Choosing a travel destination to travel in India boils down to your preference and budget. Fortunately, there’s a destination for everyone.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER