Like most Asian children, I’ve been giving my parents $200 each every month. This is usually done through monthly bank transfers, but recently I made a change by giving my parents their allowance through CPF cash top-ups instead.
But money in the CPF is untouchable!
It took me a while to convince my parents about the merits of this move. But there are multiple benefits that eventually got me off my lazy butt to make this change.
Why contribute to their CPF?
While some reasons are already listed in the graphic above, the main reasons that drove me to make this change were:
1. Tax reliefs
For each $10k rise in annual income, you also have to pay twice of your usual taxes.
When I was on my pathetic $2,500 salary in my first job, I only had to pay $200 in yearly income tax.
However, once your annual earnings …