Financially supporting my parents

Sea_Shell

Whilst I think it's a noble thing that you want to do, what do you think they are planning to do with this money?

Do they NEED it for something specific?
How much are you talking £50 a month or £500?
Would you not be better to get them something nice / holiday / meal out / tickets for a show (once all this craziness is over!)

You also need to think a bit further down the line here...it's all very well giving money away, but what your plan in the future if your own financial circumstances change?    Do YOU have a solid emergency fund?   Any Car finance or CC balances?

It's not really much of a gift, if you then rock up in 5 years time, having lost your job, at the Bank of Mum and Dad, needing it back again!!!

crv1963

OP- I think it is a lovely idea but flawed. I'd suggest (as a son and as a parent) that if they do not need the money and you do say that they "can financially support themselves but I wish to do it as a gesture of gratitude", then possibly time spent with them is more important than money.

I regularly take my mother out for days, or to places of interest, we take turns paying for teas/ lunches. My sons (who live over 200 miles away) when they visit buy me the odd pint, or every now and then a decent bottle of wine or malt whisky. The gesture counts more than the money. I take my pride in my children forging their own way in the world and young people have enough to spend on (as every generation of young people do- I was young once- different problems but real at the time) so wouldn't accept any regular gift of cash.

I'd hang onto your money, staying in touch is more important, they may well be upset that you feel you must repay monies they have spent on you, when my Dad was alive I did send my parents on a weekend break away and they enjoyed that, also they knew it wasn't breaking my bank as my sons were only little at the time.

OldMusicGuy

Seems a really odd idea unless they are short of cash (speaking as a parent of a son who is earning reasonably but not giving us anything!). Like others said, I would much rather our son treated us to meals out, holidays, visits to the theatre rather than give us money we don't need.

Also, I would much rather my son put any excess money into his pension rather than give it to us. Have you thought seriously about your future finances? Money you save now will make a huge difference to your options in the future and, as a parent, I would much rather be sure that my child was looking after their future rather than mine.  

I'm sure you will have plenty of opportunity to show gratitude when they need help/support in old age. That will be really helpful to them. 

enthusiasticsaver

I agree that while the sentiment is kind it may not be the best use of money if all they intend doing with it is saving it.  I think if you gift it out of your day to day income there is no tax to pay on it.  Large gifts can incur inheritance tax if you die within 7 years but from the sound of it you intend paying them regular smaller amounts which is fine. The return would be better in a pension so saving in one for you and maybe having a mum and dad treat fund for you to pay for a holiday or meal out instead may be better.  Have you got a solid emergency fund, no debt and a funded pension? Have you examined your own financial objectives like car, house etc and have you talked to them about it?  Personally I would rather my children invest money for their children and old age rather than recompense us for money spent on educating them or helping them on the housing ladder or whatever. Otherwise it may end up coming back to you after they die and you will have to pay IHT on it if they do not need it and do not spend it.