Financial Advice for Parents With Adult Children Living at Home

Sometimes young parents think their responsibilities will decrease once their children graduate high school and head off to college. However, this is not always the case. There are some parents who find that getting their children to “leave the nest” is a challenge, while others open their doors when their children start struggling with the “real world.” Whatever your circumstances might be, having your now adult children living at home is a LOT different than living with them when they were small.

 

You now have an older, able-bodied adult in the home occupying a lot more of your space, resources, and of course, food. The cost of living can go through the roof if you’re not careful, making the adjustment to being in the same space with your child a lot harder – especially if you’re nearing retirement or on a fixed income.

 

The best thing you can do for your household is to start looking ways to cut back on spending so that you can accommodate your needs and the needs of your child until they’re capable of providing for themselves. Here are some suggestions:

Though the hope is that your child will pitch in, one can never be too certain. Therefore, you’ll want to take a look at your personal expenditures to determine how much “wiggle room” you have when it comes to your budget. For example if you have multiple credit cards with balances on them, you can use the debt snowball method to pay them down, or if necessary, consider getting a credit card consolidation loan.

 

If you find that things are extremely tight, you can start looking for ways to cut back on your budget or increase your income. There are lots of ways to earn extra cash (both online and offline); it’s just a matter of finding something that works for you.

 

Whether your child never left the nest or simply is down on their luck at the moment, they need to be contributing financially in some capacity. Whether it’s getting a full or part time job, doing odd jobs for neighbors, or doing things around the house until they’re able to financially pitch in, you want to ensure that they’re doing something productive to aid the household.

While this might sound more like landlord-tenant than parent-child, your child is an adult. They need to be taught life skills such as being financially responsible and accountable. Drafting a contract or lease of sorts lets adult children living at home know that while you’re there to support them through this period in their lives, you expect them to step up and take responsibility.

 

Negotiating a monthly amount for rent, food, and their share of utilities will help them get into the habit of being accountable for their own expenses. When drafting this agreement, be sure to also put behavioral clauses in there as it pertains to what you expect of them while living under your roof. This can include visitors, curfew, and whatever else you deem necessary to make this living arrangement as comfortable as possible.

Encourage Savings

 

If you’ve had adult children living at home, what advice do you have? Leave us a comment below.