Gone are the days when your 18-year-old would be ready to start their career, buy a home, start a family, and begin their adult lives. Today, most students are returning to their parental homes after post-secondary with debt. According to CNN, as of July 2020, 52% of young people aged 18-29 years old were living with their parents.
Most parents of these young people typically want to give their children everything they did not have. This can mean they are supporting them – and their debt – well into adulthood.
This sounds like a pretty good deal for young adults today, but it could be doing some harm. Parents who give so much to their children may be preventing them from learning valuable lessons on their own. It is important for young adults to learn how to be financially responsible but it can be much more difficult when they live at home without expenses and can spend their money on whatever they choose.
Of course, as parents, you want to make sure your children are secure and supported, but there is another way to do this. A way to ensure your young adult has a successful financial future – to eventually be financially responsible – is to educate, support, and empower them. Here are a few lessons that can be taught from an early age.
1. Teach the value of hard work
As early as possible, set your child up with chores, or even a job like a paper route to promote the value of working for your money. Encourage your child to put aside a fixed amount from each pay to go into a savings account for future expenses.
2. Show them how to budget
Spend some time with your child to teach them how to budget. Involve your child while you manage your household budget and savings. Young people starting on their own need a foundation, and this will ensure they are equipped to manage their expenses.
3. Collect rent from your child
Once your child reaches adulthood, consider collecting a small monthly rent from your son or daughter. You can either use the rent money to contribute to household expenses or save it for them for when they are on their own. This will be great practice with monthly expenses and budgeting.
4. Call for help around the house
If your young adult is still living at home, they must be responsible for ongoing maintenance. Yard work, repair jobs, laundry, and cooking are chances to gain the confidence and skills to maintain their own homes in the future.
5. Keep your wallet closed
It is tempting to help your child out by giving them a few dollars here and there, but remember, your child is an adult! Helping them out of debt and making their car payments will not help them in the long run. These are valuable life skills that your son or daughter must learn themselves.
6. If all else fails…offer tough love
Set a date and stick with it! Once you have decided on the day they must move out – with a lot of notice – show some tough love and make sure they know you are serious.
At SolveYourDebts.com, there are many educational resources for young adults and their parents to help plan for a successful financial future. Contact us today for a free consultation on how to open the dialogue about money with your child.