Gifting Bonus to Parents?
I’m going to be getting my first end of year bonus soon and not sure what to do with it. I know most people save and invest it aside from maybe a nice purchase. Personally, my parents have never been able to afford vacation and worked hard to support me to this point. I cant go anywhere nice without thinking about how they haven’t been able to experience it even though they are far more deserving. Would it be a bad financial decision to support them with half my bonus for a vacation/retirement. Or should I wait till I can comfortably support myself before helping them out. I feel like I can live a great lifestyle with a normal IB salary + smaller bonus. Curious on hearing some more experienced opinions.
Half is a lot especially from a first-year analyst bonus, but it is a great idea to get them something nice. I used part of my first bonus to get courtside seats for my parents for their alma mater's home basketball game against their rival. Total cost with transportation and hotel was ~$4,000 and seeing how happy it made them was so worth it. Good on you for wanting to give back to your parents.
Time that your parents have alive is never promised. If you feel like you can gift them the vacation without straining your finances, then I’d say you should go for it. Im sure they’ll appreciate your effort to give back to them.
This ^^ also, as you get older and have a family you’ll count on those bonuses for a down payment, schooling costs, etc. Do it while you can and while your parents can still enjoy traveling.
My dear friend. Gift them. You got yourself into IB you are capable to find a way to generate other streams of income if you micro manage your personal finances. That said try to help them put the money in something that will help their life on the long term. Maybe they need to fix the car or what ever. Try to solve one of their problem with a long term vision span
More money will come your way man…I think this is a great gesture and you could definitely do something for them
Gift it, tomorrow is never promised. I remember the look on my moms face when I gave her 10k never mind half a bonus and she was ready to cry. She was swamped and it pretty much saved her from declaring and allowed her to be caught up.
This is a great gesture and shows you have a lot of maturity at your age - not many people understand and appreciate the hard work and sacrifices their parents make for them until it's too late.
With that said, you need to ensure you're not setting unrealistic expectations here - your parents should not be expecting six figures thank you gifts from you every year (situations can unfortunately change for the worse). With that said, I think gifting them a nice vacation, experience, dinner or something will be a great show of kindness. But again, you need to ensure you're always setting boundaries for yourself with friends and family.
I've heard of countless stories of situations where people are generous like this and then family or friends come out of the woodwork asking for handouts, which can ultimately put you in uncomfortable situations and have people turn against you for unjust reasons.
You won't regret doing this. I wish I did more of it before losing my mom. Now those decisions are irreversible. And if you're worried about the financial side of it, there will always be another paycheck that you'll feel better about keeping for yourself because you gave them this trip.
Do you have any siblings? If so, this would be somewhat unfair to them and cause some division.
Oh yeah, I forgot the part where OP mentioned he gave birth to his siblings
Not nearly the same $$ quantum since I was in corporate banking but I dropped most of my 1st year bonus on my dad's dream watch. Best move ever.
Gift it! But let me add this - depending on their financial situation I would give half of it to them as cash and the other half on a nice vacation.
I know if I gave a lump sum to my parents they wouldn’t use it on an unneeded luxury for themselves. Make sure if you want them to spend it on xyz (vacation) book it for them in advance and force them to go on it.
Don’t wait too long, some one already said, the later life curve is really tricky, would do as soon as possible if not a major strain
Give me money now
Best post I’ve seen on this site.
My mother always said that you never get poorer by giving money. It's the philosophy that underpins me giving to charity and gifting my parents stuff.
I've only ever had success following not being stingy. I believe this to be really important.
I would help them go on vacation and maybe even try to join them for some portion of it. Someone else mentioned that post-college, the time you spend with your parents diminishes drastically (true on my end at least). Sending them on a vacation, and then joining them for part of that trip if you can, would probably be something they would love, especially if they don't get to see you that much.
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