• Monday, May 27, 2024
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BusinessDay

Financial lessons for adult children

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There is a growing tendency for adult children to live with their parents during their adolescent, stage of life. It seems that this is happening for a number of reasons, such as delayed average age at marriage, lengthy college education periods and unemployment as the case maybe.

If you find yourself amongst the many thousands of middle-aged adults who share their homes with their adult children, then you need to know that the experience can be a fulfilling one for both parties, especially if you take the right measures to protect your financial well-being in the process. You need to share these ideas for teaching financial responsibility to your adult children.

Don’t allow them to get all for free, most especially the working ones.

You should insist that every adult living in the house, including your child, contribute financially to the expense of running the household. It’s not too much to ask for rent and utility payments, as well as grocery bill money. You will be doing your children no favours if you allow them to get comfortable with the idea of living for free because, they should understand the fact that life costs money, plain and easy.

Teach them to be focus. Make it clear to your adult children that, if they are living under your roof, you expect that they should be working toward self-development in a way that will ensure their own financial freedom in the future. This means that they should be gainfully employed and/or pursuing an education.

Don’t co-sign. Although it is true that certain situations may warrant the need for co-signing, only agree to co-sign on a loan of any type if it is truly necessary and beneficial to all parties involved. It is way too easy for adult children who have not yet learned the concept of fiscal responsibility to default on a loan that they did not have to work to earn. Instead of agreeing to co-sign for that credit card, automobile loan or mortgage loan, offer guidance on building credit worthiness.

Personal responsibility. The more bills your adult children have in their own names, the more responsible they will have to be and the better off they will be in the long run. Also making them responsible for things like gas, cell phones, clothing and entertainment will automatically require planning and consideration on their part because, if they don’t pay for it, they won’t have it.

Finally, having adult children at home can be a great experience for all involved as long as you take certain measures to protect your financial well-being and guide their fiscal education. Do your part to teach them financial responsibility by following these guidelines.

Tiamiyu Adio Ismail