<prompt> Human: Hi Reddit,Looking forward to some advice I can share with my parents here. Its all the data I could provide, please help.Their situation: My mother and step-father live in a somewhat expensive county in California. They have good jobs and dont seem to spend a lot of money given their income situation.Earnings:Mom 50 is a teacher who normally makes about 75K a year, but is working part time this year 45K to do school. She is getting her masters that will pay her a guaranteed 2K more a year and allow her to obtain higher paying administrative jobs, though she is taking on 15K of debt for this.Step Father 60 is probably making 140 a year This is just an estimate, but I think within reason. He is a partner at a small law firm. He just become a partner and has to invest 10K a year for the next 4-8 years in order to pay for his partnership. I know this range is large range in terms of year, but I am mostly concerned with the monthly rateThey normally maybe get 150K a year post tax. So 12.5K a year post tax. This year they are getting 10K a month post tax maybe. Assets:House, maybe worth 650K, they probably have 30 off this paid off. It is in a suburb that is increasing in value.Stepdad-140K in a retirement fund - He got screwed at an investment fund that only made him 5K over the last 14 years That seriously seems like they stole his money. He should have doubled his savings, or at least kept up with inflation, any advice here. The new financial advisor he signed wants to charge him 1 a year to manage his assets, which seems decent, but I want to get your advice. He gets two financial visits a year from this.Maybe 25K in cash or liquid assetsOwns part of his law firm, and is purchasing more as part of his partnership deal.Mom-40K in retirement - She raised my brother and myself single for most of my childhood, and didnt do a lot to saveMaybe 4000K in cash or liquid assetsTwo cars: About 10 years old each, but in pretty good shape. They take good care of their cars, and I think they will last a while.Debt:House. 650K house they have probably paid 30 of. Bought at height of housing bubble, for about 30K less.Mom - tops 45K in student debt, including the loans she took out for her recent education, which she will finish in the spring. Maybe 2K in credit card debtStep Dad: None that I could think of, though my step-brother is getting married next sprint, so my parents will probably spend 2K on that at least.My estimate of their expenses per Month: 8.5K3.6K a month in mortgage at a variable interest rate, they are moving it to a fixed interest rate soon i hope600 Utilities, house maintenance, Cell Phones, house insurance1.4K Food and Outings500 Transportation - Bus, Commute, plus insurance, plus gas150 clothes400 on health insurance The school district claims to pay 700 dollars, and only subsidizes 300. Does that not seem high?500 moms student debtExpenses by year: 7K This amount doesnt seem unreasonable3K per year in vacation1.5K at Christmas on gifts food and events.1K on birthday gifts1.5K Sports tickets associated costsTotal Estimated Monthly Rate: 9.3KI know they are not in the best situation, but I think their combined income gives them a lot of room to grow. Obviously things will change when my mom goes back to working full time, and things will get better when my stepdad pays off his partnership.I know they have made many past financial mistakes, and I am looking for advise on how to better their financial situation in the future.  <response>: Mom 50 is a teacher who normally makes about 75K a year, but is working part time this year 45K to do school. She is getting her masters that will pay her a guaranteed 2K more a year ... she is taking on 15K of debt for this.Your mom is 50 and lets assume she will want to retire at 65. That means 15 more years of work. For 2k more per year, she is losing 30kyear in income for a masters, which I assume is 2 years. So that is 60k in lost income plus the 15k in debt for what will be about 30k extra over her working career. Doesnt seem like a good return on investment there. If they are concerned about their finances, I suggest they look at the need for this extra education. He should have doubled his savings, or at least kept up with inflation, any advice here. The new financial advisor he signed wants to charge him 1 a year to manage his assets, which seems decent, but I want to get your advice. Ditch the advisor and manage his own investments. Start here Have him look up what he is currently invested in. Look at the front and back loads are as well as the expense ratio. See what a high expense ratio can do a portfolio here Check out a 3 Fund Portfolio Profit. 1.4K Food and OutingsWhat. Seriously, what is included in this category? I see vacation is a whole separate category, so what the hell are they spending 1,000month? 600 Utilities, house maintenance, Cell Phones, house insuranceI think one problem you are having with seeing what they are actually spending is the fact that there are these absurd spending categories. Cell phones do not belong in the same category as home insurance. Separate all of the spending out and make reasonable categories so you can really dig into income and expenses.When you make a budget, either for yourself or your parents, it should include monthly income, a listing of all debt with their associated totals owed, minimum payments, and interest rate, and a listing of all expenses parceled out into categories that make sense and give meaningful data to you. For example, some people may do a lot of fast food as well as buy lunch at the buildings cafeteria every day so they should have a grocery line item as well as a fast food item and a separate work lunch line item. dont seem to spend a lot of money given their income situation.I think you may have an unreasonable view on what a lot of spending is for people who are very close to retirement age and only have 180k in retirement accounts and perhaps 200k in equity in a house, along with carrying 50k in debt. 