Thread by @bopinion

Older people have been hit from both sides by the Covid-19 pandemic and the recession:

🥚Nest eggs are wobbling
💰Retirees could run out of savings
🚑Workers face heightened health risks
📈Ages 55+ have very high unemployment trib.al/mMlQ5PJ

As your parents get older and you get more established, they may turn to you for financial support.

While you may feel a moral obligation to help your parents, you first need to run through a basic checklist trib.al/mMlQ5PJ

Step 1: Know your own financial situation.

For that, you need a personal budget. Any decision about your generosity hinges on whether you actually have the money trib.al/mMlQ5PJ

Giving money to your parents only makes sense if it affects your current lifestyle.

It’s not a good idea if it would reduce your future lifestyle. Reducing your retirement contributions will cost you much more than getting takeout less frequently trib.al/mMlQ5PJ

Borrowing isn’t a good answer.

If you borrow to pay your parents, you’ll put yourself at a financial disadvantage. It will reduce your credit score and give you less cushion for your own future money needs trib.al/mMlQ5PJ

Going into debt or dipping into your own emergency fund carry similar risks.

The rule of thumb is to have six months of living expenses. With today’s low interest rates, it would be cleaner for your parents to borrow the money themselves trib.al/mMlQ5PJ

Step 2: Consider the reason your parents need financial help right now.

One-off situations like essential car repairs or temporary assistance after a sudden job loss are fine. If your parents’ financial need is chronic, it’s a different story trib.al/mMlQ5PJ

If your parents have a…

🎲Gambling addiction (up to 10% of elderly)
🛍️Compulsive shopping habit (up to 5% of adults)

Then giving them money is a form of codependency and will hurt them. They need professional counseling trib.al/mMlQ5PJ

If, based on the above criteria, you decide that giving money to your parents isn't an option, you can still help them in other ways. You can...

⏰Give your time
🥫Drop off food
💊Pick up medicine
🛠️Do some repair work
💸Help them find other income
trib.al/mMlQ5PJ

So the answer to whether you should give your parents money truly depends on whether you have a budget and know what you can afford.

If you don’t budget yourself, then you can’t help your parents financially trib.al/mMlQ5PJ