It is fast becoming a common trend for Kiwi kids to live at home with parents well after leaving high school and into their 20’s.
It is fast becoming a common trend for Kiwi kids to live at home with parents well after leaving high school and into their 20’s. Whether it's to help take the financial strain off of University life, which is becoming increasingly expensive, or to help them save up for a home deposit, there is mounting debate on whether parents should charge “adult kids” board to live at home past high school and not make it a charitable situation.
So what are benefits for charging board in this situation? Well, in addition to receiving that little bit extra to help pay bills and mortgage repayments, there are also some benefits for your kids… or adult kids.
#1: It teaches them good habits
As we all know, living in the real world costs money and charging your kids board will open their eyes to this. While some parents may find it a little cruel (or unnatural), letting them stay for free can be crueler, skewing their perception on how the real world works making it a bigger shock when they do finally enter into a formal renting situation.
Even if it’s only a little, charging board is a good stepping stone for kids to experience making rental payments, teaching them good budgeting habits and how to manage their income.
So how much should you charge?
Some parents opt for a round figure that is less than standard rent and bills in a shared flatting situation, while others prefer to charge a percentage of what their child is earning.
#2: Save now, spend later
If you’re not comfortable charging adult kids board, you can still help them get their head around this real world budgeting requirement.
Putting their board payments in a savings account means it’s accruing interest and will be of greater benefit to them when it comes to their future travel or home buying plans.
Some parents choose to keep this as a little surprise, returning the cash when the appropriate time comes helping cement the good practice of saving money.
#3: When should you start charging board?
There are a few different trains of thought on when parents should start charging their kids board.
Some start as soon as they begin part-time work while at school, thinking it's never too early to learn good habits.
Others think this may be a deterrent from kids even looking for and starting a job, so prefer to wait until after they've left school. Some others still wait until their kids have finished all forms of education and are working full time before handing them a bill.
In the end, there is no right or wrong answer, and whatever you decide to do will have its supporters. Just make sure you explain your reasons to your child and while they might not seem too happy, know that you have their best interests at heart and teaching them valuable life lessons!
