If a grown-up child is living at home, getting them to contribute to the household finances is one way to help them towards a financially independent future.
Most grown-up children who are living at home will be doing so to save money. But this doesn’t mean that they’re your financial responsibility. It’s important to talk to them about how they can help with living expenses.
Communicating clearly is important. If you’ve never told them before, they might not even realise how much the financial support you give them costs you.
List the ways they can start to contribute. Then, together, create a plan with a start date to make this contribution a reality. Here are some things to consider:
- how much will they contribute towards the rent or mortgage each week – for example, 20% or 30% of their wage?
- what household bills will they contribute to, and how much?
- are there any jobs that you might have paid someone else to do, such as redecorating the lounge, that they could do towards their share of the rent, mortgage or bills?
- how will they contribute to any unexpected household expenses that crop up?
This will teach them about the importance of savings or a ‘rainy day’ fund.
It’s a good idea to have the financial facts handy to show them why you’re having this conversation. Also, show you understand that money management can be difficult by offering to help them work out a way to budget for their household responsibilities.