When adult children live at home, the idea of charging them rent inevitably crosses our minds. How much should you charge to your children, who are well into adulthood, to live in the family home? Will there be different related to this money? What are your expectations and those of your children? When it comes to money and children, there are a lot of difficult decisions to make, most of them on a personal level. So, if you’ve decided that your adult children do not have to pay rent, that’s fine, but here we’re going to play devil’s advocate and take a look at why charging your kids for rent could be a good idea.
Opportunity to teach them a lesson about money
At some point in life, you have learned the value of money and what income means. Maybe your parents taught you this at a very young age. Maybe you still try to learn it. In any case, you should want your children to also have the opportunity to know the power of money. Charging them with rent is a great way to show them.
Life is not free or even affordable sometimes
When your 25-year-old is working full time and lives at home for free, the amount of money spent on what he wants is priceless once in the real world and can not be maintained outside the family nest . By charging rent, it will force them to learn how to better manage their cash flow. Going from zero fixed fees to one may not seem like a major change, but it will definitely help your child make better financial decisions.
Financial independence, or at least some understanding of what is needed to achieve independence, is one of the best gifts you can give to your child. Life is not easy or free or affordable sometimes. Teach it to your children and it will be less shocking for them and they will be less likely to come home at the slightest problem.
Consider other types of rentals
If you do not really want to charge a fixed fee to your child to live at home, you can still consider other forms of rent. There is no reason for your child not to contribute at home. Anyway, you can delegate to your child certain tasks that must be accomplished, whether it’s a weekly grocery store, laundry, dishes, taking care of the pet company, to go and bring back the youngest brother or all those things. You will not automatically teach them the value of money but they will understand the time and maintenance that a home requires.
You could also ask your children to set financial goals and contribute to their savings account the time they live under your roof. You can use this option as an opportunity to help them save for a down payment, repay a student loan debt, or simply save on rainy days. In this way, you will not charge them rent, but you will teach them a lesson anyway.
How to approach the subject of rent
Do you have trouble addressing the subject of rent? Here are some tips that will help you get started and get your child to pay his rent.
- Keep in mind that you are the parents, that the house is yours and that you worked had to pay it
- Also keep in mind that your child is now an adult and should be mature enough to understand what it means and how much it actually costs.
- Tell your child that you want to talk to him about how much it costs you to make him live at home
- Sit down and discuss the subject.
- Explain that you are willing to make a friend price
- Make sure your child knows that you simply want help covering the cost of household items and the benefits that are available daily.
- Accept the price and set a date when the rent must be paid. You can also discuss what will happen if your child is unable to pay rent on time etc.
If you are nervous or unwilling to pay rent to your adult children, know that you are putting your own financial stability at risk simply to allow them to live at home for a few years. By charging them rent, you will help your child learn how to manage his money and reduce the financial burden on your household budget.