Should They Pay You?

While some children went back to school or moved across the country, other children are now, more commonly, living at home after graduating college. Compared to 20% of individuals who were living at their parents’ home in 1960, now over 36% of individuals ranging from 18-34 are “nesting” – and that number continues to rise. As the economy changes and concerns for Millennials finding a steady career continues, you as parents are left with a decision. Do you charge rent? What about utilities? Do you ask them to pitch in and help out? In my opinion, I say yes.

Here are some things to think about if your kids come back to live with you.

Setup a Budget: Talk with your child and review their budget with them. Understanding that at this point in their lives they probably aren’t “raking in the cash”, so set a reasonable dollar amount they can afford for rent every month and a date for when the rent is due.

Set Rules: They say that once you’re a parent, you never stop being a parent. Now that they’ve come home, it’s time to set the rules again. With financial responsibility comes personal responsibility. You’re a parent, not a maid, make sure they understand that part of being adult also comes with cleaning, cooking and helping out around the house.

Goals: Have your children tell you what their goals are, how long they plan on staying at home with you and what they are actively doing to better prepare themselves for their future. Then, help them create realistic deadlines to try and reach those goals and the steps they need to take to achieve them.

Savings: The whole point of the kids coming home is for them to save money. Just as long as you’re not charging them an arm and a leg to stay there, they should be able to save a substantial amount for their future plans.

Although I will always be there to help my children whenever they need it, I also believe that if you teach them financial responsibility now, it will help them transition into adulthood when they decide to move out. Of course you want your babies to stay close at home with you; until they start eating all the food, leave a trail everywhere they go and you’re back to three loads of laundry a day!

So take these ideas into consideration, sit down with your kids and have a conversation. This is a major steppingstone in your kid’s life and you can help better prepare them for their futures by teaching them financial responsibility now.

P.S. – Here’s one more idea for you. All the money you receive from your children for rent, utilities or just chipping in, take that and save it. Or you can contribute it to an investment account and by the time they’re ready to move out, they have a nice cushion and less stress.