Are You Prepared to Take Care of Your Parents?

Planning Ahead is Key (Ong, Ryan (July 2016⁴)

The first thing you can do is to regroup your priorities and form a plan well in advance. Sit down with your parents as early as possible to roll out a roadmap for their future care. Do they hope to stay in their current home or move in with you and your family? What are their biggest financial concerns for the future?

Some financial sacrifices you may need to make when supporting aging parents include time off of work and extra expenses for housing, transportation, and medical costs. While many Singaporeans have the option of additional domestic help, ask yourself what you could be doing right now to see to their care in the future. If you need to include your spouse or children in these conversations, be sure to do so.

Budget Well (Ho, Timothy (August 2019³)

Next, it’s important that you start budgeting and saving for their future care as soon as possible. Set up a separate emergency fund for your parents and consider cutting other unnecessary costs progressively from your spending habits so you can continue to save more and more each month for whatever the future may hold for your entire family.

Understand All Insurance Options Poh, Joanne (November 2018⁵)

Medical bills can be costly if serious health issues arise, so even if your parents are fairly healthy at the moment, make sure they have the right coverage, including both medical and critical illness insurance. Also, be sure to also take them to get regular medical checkups to avoid any unwelcome surprises.

Be Prepared for Outstanding Debts (Cheng, Mark (August 2018²)

This singular area can have quite a severe impact on your finances if you’re unaware of it. If your parents have debt they’ve acquired over the years, you need to budget for it each month – especially if it comes with a high interest price tag. The sooner you can pay things off, the better for everyone! Make sure this is something you discuss with your parents when you have your initial planning conversations as well.

Being financially responsible for your ageing parents may be a difficult endeavor, but with careful planning, budgeting, and a unified family effort, you can do the honorable thing and care for your beloved parents if and when the time comes. Together, you can make sure your loved ones are cared for both physically and financially, without sacrificing as much as you might without proper planning.

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