Should You Charge Your Adult Children Rent? (2024)

FAQs

Should You Charge Your Adult Children Rent? ›

According to SmartCapitalMind, financial experts agree that parents should charge rent to adult children living at home or in another property the parents own. Financial advisors have seen cases in which young adults don't learn to take the obligation of paying rent seriously and end up deeply in debt.

You don't have to charge them much, but yes, you should be charging your adult children rent. It is the consensus of several financial experts (and the property management pros— We're forced to process far too many evictions for non-payment each year.)

You may decide to ask your child to pay a rent for room and board, even if it's a nominal amount. Alternatively, you might also ask them to cover any increases in utilities, such as water or electricity.

Ask for rent contributions.

Set a weekly rent that covers approximately 30% of their pay, to get them to understand what it costs and how it feels to have to depart with a set amount of pay "just to have a roof over your head". Put all of this down in writing and draw up a budget if needs be.

The most obvious pro for having your child pay rent, even as early as age 16, is their financial independence. Children in their teens may find themselves tempted to blow newly found part-time income in any number of ways.

If you're comfortable financially, charging your child rent could be a way to teach them about responsibility and help them prepare for the future, even if you don't need the money.

Share the plan you created, clearly communicating expectations “on everything from rent to household chores to who's paying for the meals,” Stoddard says. Aim to be as specific as possible. It's best to have this discussion with your child before they move home, so they know what to expect.

Specifically, California Family Code section 4400 (“FC 4400”) states that, “Except as otherwise provided by law, an adult child shall, to the extent of the adult child's ability, support a parent who is in need and unable to self-maintain by work.”

A common rule of thumb is to pay children between 50 cents to $1 per week for each year of their age. Following this rule, a 10-year-old's allowance would be between $5 and $10 per week, while a 16-year-old would get between $8 and $16 per week.

Examine Your Unique Situation

The general consensus is no matter how responsible a child may be with their personal finances, they should not be held accountable for paying for all of the household bills. A grown adult who has moved back in with their parents is likely viewing moving home as a temporary situation.

When your adult child keeps asking for money? ›

It's often part of the process of them moving into a more independent phase of life. If your grown-up son or daughter keeps asking for money, the two most important factors for you to consider are setting boundaries and having good communication. Power Phrases to use when setting money boundaries with your adult child.

Communicate to them what behaviors are and aren't acceptable, and enforce these boundaries whenever they come up. Use phrases like “This is what I need,” “What you are doing is hurtful,” “I know it hurts to hear this, but I don't like it when _______ and I've asked you repeatedly to stop.”

If you already have enough money, you might feel that being your children's financial support pillar is the right thing to do. However, all adults eventually need to be responsible for their own living costs. You can't stop that from happening, but you can help prepare your children for it by getting them to pay rent.

According to SmartCapitalMind, financial experts agree that parents should charge rent to adult children living at home or in another property the parents own. Financial advisors have seen cases in which young adults don't learn to take the obligation of paying rent seriously and end up deeply in debt.

many general guidelines on budgeting say rent should be about 30% of income. So that would be my starting point. That sounds too high to me, I charge both my DC £250 per month (they earn around £1850 each) on the understanding that they save a lot of their salary, which they do. Gosh, that's very generous of you!

Some parents will charge their children rent and then put it into a savings account for their child to have when they move out. In this case, my answer will always be yes and this is fair because it teaches them responsibility, budgeting, saving, and also helps them in the long run.

Out of the 960 respondents of a survey that ran in The Globe and Mail's Carrick on Money newsletter on June 15, just over half of parents said their children pay rent, while 11 per cent said they contribute in other ways. Fifty-two per cent charge $500 or less a month and 27 per cent charge $501 to $1000.

Commenters recommended charging anywhere between $50 and $200 per week, depending on whether the son agreed to complete chores. Some suggested secretly stashing the board in a bank account and giving it back when the son moves out.