Ankur Warikoo shares three money rules he follows to take care of parents: ‘We never tell them the actual price’

Ankur Warikoo, digital creator and finance educator, recently took to social media to share 3 money rules he follows to support his parents. According to him, “taking care of your parents isn’t always about giving them money. It’s about giving them the freedom to enjoy it.” He listed out the following tips in the caption of his Instagram reel:

“1. We sponsor their travel: Wherever they want to go, and whoever they want to go with, we want them to enjoy travelling.

2. We give them a fixed monthly amount: Since their retirement, the money goes into their account on the first of every month, and they can spend it however they want.

3. We buy them a new phone every two years: We do it without asking because otherwise, they’ll keep using the same phone – and we never tell them the actual price!”

Mukesh Pandey, founder and MD of Rupyaapaisa.com, says providing assistance to parents in their old age is not just about earning more money or transferring money whenever they ask for financial support. In reality, it is about “building a system that protects them and allows them to remain dignified and independent”.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Individual financial situations vary, and readers are advised to consult a qualified financial planner, advisor, or mental health professional before making financial decisions.

In this context, Pandey recommends following these guidelines to help you financially support your ageing parents without putting a strain on your pockets:

1. Set up a special fund solely allocated for this purpose

Pandey warns against depending solely on your monthly income. “It is important to make financial provisions for your parents in a well-planned manner and not just treat this as an out-of-the-blue expense,” he reiterates.

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“Start by estimating their monthly expenditures in terms of groceries, household expenses, medications, personal insurance and other essentials. Then set aside a dedicated fund for parents, which covers at least 6-12 months’ worth of essential expenses, kept in a low-risk savings account or investment instruments,” he tells indianexpress.com.

This will allow parents to handle unexpected medical costs and emergencies without worrying about their own financial well-being.

2. Ensure medical and financial protection

Since health costs are one of the biggest financial concerns in old age, Pandey recommends reviewing all the health insurance your parents have now, seeing what’s not covered, and how much you can count on in an emergency. As such, he says that it may make sense to set up a dedicated fund for all medical expenses.

“Paid health care is not the only thing that should be taken into consideration. Review all the pensions, retirement savings, bank accounts and loans that they have,” Pandey added.

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3. Treat parental assistance as an integral part of the financial plan

Rather than transferring money only when the need arises, Pandey suggests calculating how much your parents need each month and how much you can afford to contribute. “Treat this contribution as a commitment in the same way you would consider your savings, payments for insurance and for loans,” he says.

Nevertheless, Pandey warns against jeopardising your own retirement funds or your emergency fund to satisfy your parents’ every demand. Talking to your parents about their income, savings, debts, and future expectations helps in this regard.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Individual financial situations vary, and readers are advised to consult a qualified financial planner, advisor, or mental health professional before making financial decisions.