Adult Children and Money
What to Do When Your Adult Child Needs Money and a Place to Live
Mar 9, 2008
When your adult child comes to you with money problems, and wanting to move back in, how do you handle it? Ways to help your kids deal with monetary issues.
Moving back home with your parents after college was once a no-no. Now, no longer a stigma, young twentysomethings look at mom and dad’s house as a not-so-temporary pit stop before going out on their own. You’re giving your adult children a roof over their heads. But how do you broach the subject of rent and other household expenses?
How to Handle Finances When Your Adult Children Move Back In:
- Yes, you should charge rent. You may say to yourself, how am I helping my child if I charge him rent? Think of it this way. You’re hurting him more by not insisting on a monthly fee. You don’t have to charge him what a New York penthouse would cost, but a small amount that he is responsible for will help your kid become more independent and prepared once he does strike out on his own.
- Make your adult child responsible for household expenses. Once you have another mouth to feed again, your grocery bill will go up. Your utility bill won’t get any lower either. Also consider whether your child is using your car and your gas. Again, a small monthly stipend to cover these expenses will help your child set up a budget and plan his finances accordingly. Also, list chores your child is responsible for each week. Think of your household as a corporation. Everyone needs to contribute to make it run smoothly.
- Set up house rules and stick to a curfew. Your child may have stayed out all night in college but make sure he knows different rules apply at home. Set up a family meeting and insist your child live by those rules. And don’t allow him to lounge by the pool all day long. Part of the arrangement is that he actively looks for a job and shows you some evidence daily.
- Set up a special account your child can use for a downpayment on a home. Take part of the rent money he gives you each month and put it in an interest-bearing account; either a CD or money market. Your child can take that with him when it’s time to finally leave the nest. Once the amount gets large enough, encourage him to invest it himself.
Moving back home doesn’t mean a return to childhood for adult children. But while you have them under your wing for a short time (hopefully) help your kids get some financial footing before venturing out on their own completely.
The copyright of the article Adult Children and Money in Consumer Education is owned by L. Marie Dubuque. Permission to republish Adult Children and Money in print or online must be granted by the author in writing.
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