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- How to become a millionaire by 30
- What % should I charge my adult son for rent?
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- Rental Basics: What % should I charge my adult son for rent? - Trulia Voices
I also disagree with the parents who say that you should give him the money back when he leaves home--that's just sending a message that the rent was "pretend" and that it actually was a free ride. My son lived at home while he worked until he was We initially let him set the rent, but as his salary increased he voluntarily started paying for more things, like dinners out, cable bills, etc. And he managed to save, too--when he left he'd saved thousands.
Paying rent made him more responsible and taught him how to budget his time and money. And it gave him the self-confidence to realize that he could live within his means. So when it was time for us to move to another state and for him to live on his own, he was ready and made the transition beautifully. I'm very proud of him, and we remain a close and loving family, even though we now live 1, miles away, I think a lot of parents subsidize their kids for too long because they're afraid their kids will resent them if they don't.
But I believe the opposite is actually true: Adults who are treated like children long past their adolescence stay immature and secretly resent the fact that they can't make it on their own--and often project those negative feelings on their parents. I agree, my daughter is Has moved out twice against advice.
She dropped out of college for no good reason, likes to get high with her friends but she does works hrs a week. I feel that I have to charge her. She has already exhibited signs of immaturity by recent choices. Also, this is the last time that I will allow her to move back if she decides to move out again before ready. As a 24 year old currently in med school and working part time, my school and work take up ALL of my time.
School MOST of it. My parents don't have money so all of my school is done through student loans in my name. Do you think I'd have any chance at all if my parents were taking my money despite how hard I'm working? Do you know how discouraging and cruel that would be? My parents payed rent to their parents, but they were only working, not in school at all, let alone med school. I think there are always circumstances where rent free living is acceptable. I don't think its a disservice at all. Next year I'll be clearing what most people make in job maturity in residency my first year out of traditional school, so I will have no problem moving out.
This opportunity would not had been available had my parents made me pay rent, I would have failed out of school. When I got married I did not let my parents give me any money as they are on a fixed income and I am doing fine. I completely agree with you. My parents did not subsidize me when I was growing up and it made me push to become a better me.
I see one of my 14 year old son's parents giving him money all the time. They think this is showing your child love. I believe you prepare them for the real world and that shows them love! I believe kids are pampered way too much in today's world and a big reason they are living at home longer. He and I sat down and I showed him how much it cost to run the household so he would see he is getting a good deal.
Pampering your child is not love and it is not preparing them for whats outside of the walls they live within! Needless to say, they get a lot more staying at home, then they would if they were out on their own, like the utilities, and family meals, but at least it prepares them for living out on their own. Too many young people think their earning should be their's to spend as they see fit, but that should apply to the parents as well. Once you raise them, they should be prepared to support themselves.
We didn't charge our son rent. His K is so large I could brag -- yes money earns money! I agree totally with what you say, June. I had no choice but to charge my son a reasonable rent, and never gave it back to him later. I would have liked to, but being a single mom, I couldn't, and in the long run, I felt it helped build the strong and reliable person he's become. Now he is 42 and making times what I earned before retirement.
He doesn't need my money, but he knows that if he ever needs anything - money, etc. He paid his own way through college with loans covering what grants and scholarships didn't. I was able to help by covering his rent during those years - that's all I could afford. He's done me proud, and I do believe he learned early not to have an attitude of entitlement, like some of his classmates. I truly believe it's made a better person of him. And, yes, if time comes when Mom needs to move in with him and his family, I fully expect to pay my way, too. Gonna try not to ever have to do that, though!
That is teaching responsibility. You don't charge rent because you, personally, are financially hurting! If you already have a child who is NOT working and is not disabled, you have a big problem that will only get worse - I suggest YOU stop paying for the cell phone, entertainment, cigarettes, etc. If they are not in school they should be paying some rent. At what point will they grow up? This is only my comments if they are NOT in school.
My 22yo son lives with me and yes, he pays rent, a portion of his student loan, a portion of the food bill, he has started investing in his K, begun laddering CD's, and is also saving for a car. All because of me. When he lived with his father, he paid no rent, had no goals, no ambition, no structure. Mind you, he's been working since 14yo. My children are now in their 50's and 40's.
How to become a millionaire by 30
Two bought their homes in their 30's. Of the 2; one came home very briefly after college; then moved into her own place. The latter, my son, was always financially savvy in thought and action - BOTH are mega responsible and have 'given back' in a myriad of ways. Raising them as a single-divorced woman for the majority of my adulthood taught me to educate them on the realities of life and teach them how to survive with good skills and sense.
I agree that it's a disservice NOT to charge an adult for rent. They don't respect themselves OR you if they are allowed to act like a dependent child when they are, in fact, an adult. I KNOW they hurled that at you when they turned 18! I agree with you that is the stupidest thing I've ever heard to give the kids the money back because what's the point then of charging rent at all?
Absolutely, you should charge him something while he lives with you. I think that the people who say that you should not, have the best of intentions, I'm sure. However, your son has to start learning to budget himself and start learning what it's like to have to meet certain financial obligations. What I did with my son was to charge him an agreed-upon amount each month to cover such things as his food, his use of the utilities, cable, laundry, etc. He was responsible for the cleaning and maintenance of his room - no free maid service! Unbeknownst to him, however, I opened a savings account and put that money in it every month.
When he left to get his own place, I presented him with the saved money for him to use to furnish his place or whatever he wanted to do with it. He was so blown away and grateful. Children need to learn the value of money and to know that living off one's parents should not be a long-range situation. I totally agree with you. My stepson lives with us. He graduated college last year and he is 24 years old. He has had a pretty good paying job since which pays him well.
What % should I charge my adult son for rent?
He was given his grandmothers car since she can't drive anymore so he has no car loan or doesn't pay for his own insurance. His only bills are his college loans and his cell phone. He is not expected to do anything around the house but clean his room which he doesn't do. If he sees something he likes he buys with no regard to how much it cost. My husband will not even broach the subject. He wants me to tell him we are going to start charging him.
I am at wits end on what to do. Family stiutation is very different. I got sick anxiety. Attacks and on disability , he is so. Doesn't want to help with food and rent. Left his mom hungry and stressing knowing. On top of all that I help him get a summer job and the one he has know. Please comment what to read what other parents think. I am standing my ground told him pay me some money or get out! If he does not learn financial responsibility now, what will he do when he has a family of his own? He should have learned this at the age of 14 and started to pay you rent at about yrs.
How many of us work 2 and 3 jobs just to make ends meet and don't have the luxury of a hand out? What if something happens to you? Will he be able to survive on his own if he has to? I know 20yr olds that are married with kids making it on their own. If he thinks that is all he needs for him to live, he needs a rude awakening and you should sit him down and show him all that it takes to pay for the life he really lives.
Otherwise, set up a shelf for him in the fridge and have him buy his own food. If he isn't making enough money to afford all that, it will be a wake up call to him to realize he needs to do something else with his life. That is when you step in and offer options. What is the worst thing that will happen here? He will get a second job to pay bills or move out and try it on his own. That shows he understands the need for hard work to cover expenses and that he has drive to do it.
He is 20 years old so do not feel sorry for him. If he is only working hours a week. What is he doing the other hours a week? I assume you are doing what ever it takes and working as many hours as needed to make ends meet, why shouldn't he??? Parents of millennials will undoubtedly flame you for your response, but I personally totally agree. I'm 37, with a 10 year old at home, and I have no intention of letting her live at home rent-free after she graduates high school unless she's a full-time college student with passing grades.
It didn't kill me, even if it made me take a couple extra semesters to graduate. Now I've got an awesome house with a 3-car garage on a third of an acre in a great neighborhood because I worked hard and got a good job. My brother, bless his heart, who my mother coddled in just this way, who never went to school and now mows grass for a living, can barely pay his own apartment rent and is still driving the truck my parents bought for him when he was 16 he's 30 now.
Hard work makes you stronger. Coddling your man-child makes him a milktoast weakling. My son graduated from college and announced he would be moving back home. I was surprised since I had been paying his rent while he went to school - and he lived in the same city! So, my husband and I agreed that we would charge him rent. Two weeks after we told him he would be paying rent, he "found" a place to live with friends.
Interesting that he couldn't find a place before we told him he had to pay up. I say- don't enable. Let them take on some responsibility. Speaking as son once in this situation I feel it is best to pay rent. Here is what my parents did. While in college and living with my parent I paid them a reasonable monthly rent. I didn't have tons of cash during these years but I managed.
In fact it kept me focused on college. Little did I know my parents were taking the monthly rent payments and depositing it into a savings account in my name. After graduating college, It was a pleasant surprise when I went to purchase my first home. This puts to rest the argument of taking from your child and satisfies the desire to teach responsibility. I also have an adult son, now 32, who has always lived at home. Once he had a job we started charging him rent.
It doesn't matter how little he's making. If you were making that little you'd still need to pay your way just as part of living. He's a working adult now and his money is no longer just his, he needs to contribute to living expenses. Here's what's worked for us and we found it to be very fair: I wrote down the cost of everything my son ate for one month to figure out what his food actually costs for one month.
TV service, cell phone service etc. So take how many people are in your house and divide these costs by that amount. And that's his monthly cost. I bill our son once a month for all of this. For the month of his birthday I add up the cost but then zero it out as a birthday present. Paying his share of all of this is still way, way cheaper than if he had to go out on his own. He also pays his own car insurance and took over premiums for a life insurance policy we took out when he was born. He also orders once a month online from drugstore. Once in awhile if I see these thing on sale I'll pick them up for him and not charge him.
I hope that helps.. This is what I'm thinking about doing. May I ask how much his monthly payment is?
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Your son being 32 years old needs to get out. He'll never know real responsibility. How can learn how to be a real man if he never has to to deal with REAL man problems?!? After graduation he should've been out. He'll never leave or get a woman worth having. To be fair you techincally should subsidize all the costs that your living expenses cost.
You are being a hypocrit to your own logic. Also lol to the insurance policy. How much should I charge her? Your a cruel mother!!! I mean my parents don't charge me rent because I'm in college and saving. What are you thinking? You hardly know the circumstances! I'm pretty sure he's not chained to the bed. I have to say it. I think it is time for you to push him out of the nest. He needs his own home, condo, apartment, and life. He deserves the right to, how did those very wise men put it?
I thank you, Bill and wife, for doing your best to be a responsible parent. I remember back in the early 70's how I moved out when I was Yes, Seventeen, and never moved back. My spouse paid rent to his folks until he moved out at 20 and also never moved back. It rather worries me. Some sociologists and "experts" are now saying that young people are in their adolescence until they are 25 or so! When I was 25 I had a husband, mortgage, car, job, new baby, and well When I was 20, the last thing I wanted to do was continue living with my parents.
I hated the control it implied and wanted independence. If it meant living in a dump and having a roommate, we did it. I think there has been a generational shift; expectations are so different with regard to what young "adults" and their parents are willing to accept. They have parents who thought it was their right to buy a house without a down payment; to borrow against their home for a new car; to not "make" their children word at Young adults have access to information at their finger tips, never had to practice restraint with camera film or have patience to get pictures developed it's a metaphor people.
I think it's great that he has a paying job but by the time I was 20 I had two jobs, was going to college and paying for everything because my parents would have never allowed me to be 20 working only hours a week, living at home for free. At the age of 20 started working for Chrysler making more money now he is responsible for My son is now on his own rented a house for a year and is now looking to purchase his first home at the age of 23 as parent it is our responsilibity to raise responsible adult.
If you don't need the money you can charge him rent and put it into a savings account and then when he is ready to move out you can surprise him with a nice down payment for a home of his own. This way he gets use to paying rent or mortgage and will have some useful savings for the future. Giving money back at the end is no longer a secret in this internet age.
It is to simply asks your kids to temporarily save money in your bank. Why not to give them money when they need it, but completely unlink it with what they paid for rent! Depending on where you live, that might be a tiny shack or a sweet new pad. I think this is a great idea! My parents did this with me when I was trying to get started, and I thought it was very generous. Yes, otherwise we will continue to create men without responsibility and think they are entitled to everything.
If a bird shows its children how to fly by pushing them out.. Now when we as parents are no longer there it will be too late and we will cause more damage to our children because now they will live struggling day after day because they have become co-dependent to their financial supporter. Because while we are here to show them and guide them we decided to baby them with the good intention but we are making our children weak for society when we do this.
Let's conclude with this.. It's a soft experience for our children to learn so when they reach they are on their own. My mother n law charged my wife "rent" for a number of years, but then upon finally moving out, gave the money to her as a start up nest egg. It teaches todays youth a method of responsibility in learning how to pay bills. Im not a parent yet You can also choose to keep the rent, save it for him without telling him you are doing so , and when he does get his own place, give it back to him as a house warming gift.
It's only reasonable and teaches a valuable lesson in adult responsibilities. They did NOT have to co-sign for my first loan either. This was one hot topic! I'm glad to see the majority feel that it is best to charge rent, as not doing so may only serve to enable the adult to squat. My neighbor's adult son - in his very late 20's - has been squatting in her home for years.
He doesn't work because he doesn't have to - his mother is supporting him. Her continued support of him is not teaching him life skills. It's not a fair arrangement for either of them. If something happens to her, he isn't going to know how to support his self. Knowing what I know of him, he will end up homeless. That was the long way of saying - Absolutely! Oh - and charge only what will cover the added expenses, and insist he contribute to the household chores. At the very least, keep his stuff picked up, help with the yard work, etc.
Our son is 20 and still living at home too. He is a full time student and works 20 hours a week. He pays for his portion of the phone bill and his car insurance. We have him putting a portion in savings for emergencies and the rest for gas, dates, etc. He has set chores around the house that he is responsible for. He has a 3. We think this is enough. He will graduate in May of and then he will get a job and begin his independent life. Our goal is to set him up for success and the less stress he has now as he finishes his degree, the easier it is for him to focus on his academics.
They need down time and recreation time. Taking rent from him cuts into that. We think his portion of the phone and car insurance is enough right now. I would think he is paying tuition too since that will benefit him directly. Good job on prepping your son for life. This is a difficult one in America. As Americans we think, your 18, you move out of your parents house. But if you look at other cultures, they have multiple families living together, sharing in responsibilities. My parents had a rule, as long as you were in school college they would let my brothers and I live in their home rent free.
My brothers chose to move out at 18 and not go to school. I also took that route, until I turned 22 and decided j wanted to go to college. At 22 I moved back in with my parents rent free for a period of time. If I did not have their support at that time, I would have struggled between working full time and full time college to afford rent and bills.
I am great full for the fact that they helped so much. If you want to teach more independence and fiscal responsibilities at 20 yrs old, have your son enroll in a college course plus work his job, and as always, he should help you with cleaning and cooking and maintenance around the house!! My parents still help me greatly, not with money, but with their time! I'm a home owner and have not figured out how to fix everything myself yet, but my parents come and help fix things and teach me how to fix them in the process for the future.
There are always different ways to approach things, you have to choose what is the best for you and your son! The big thing is to instill hard work and responsibility into him!! Carol B - I. They are right, each family is different. My kids did not have much money when they left school and my son had a steady girlfriend who was not getting any support from home. I helped them but gave parameters -- they had 3 weeks to get a job, they had to pay for half the food once they were working. They also paid for any of their clothes, entertainment, gas, etc. I also put a 6 months limit on their stay.
Finally, my son was learning disabled so he was not going to finish school, but I helped his girlfriend fill out paper declaring her independence from her parents She had been on her own since 15 and they would not even fill out the scholarship applications. She got some help going to the local state college and earned her degree.
They were on their own feet with the six months. They have prospered since then and my son has become a prudent spender and a saver. He will be surprised when he goes to make a large purchase one day and you have a nice amount of money to give back to him. I think it depends on the individual for that answer. I am 44 now and when I was younger, I moved in and out with my mom several times.
She didn't charge me rent, as I was moving back because I was broke or in debt, but I did help with utilities, cleaning and groceries. At one point, I was also a student. I've always appreciated that she didn't charge me and could have. We had our niece living with us this past year and opted not to charge her rent, but she's a responsible 19 year old, helps around the house a lot, had managed to pay off any credit cards, pays for her own stuff, cleans around her and throws a few bucks towards groceries when she can. Additionally, my fiance' is injured and can't drive, so she spends her mornings running him around to various appointments before she goes in to her restaurant job, which helps me tremendously.
It's really up to you. Different people here have different kids with different situations. Some kids need to be taught responsibility. Others help out, need a break and a chance to save money. If you opt to have him pay, I'd suggest keeping it low, maybe a month.
Or, put something aside in an account for him and let him know you're doing that for when he decides to move out If you go all out and charge full rent, then they may come back and expect to be a "roommate". This may mean waking up to strange people in your kitchen.
It's very important that he pay rent, and do so by check. When he becomes a first time home buyer he will need to prove that he has a history of paying rent. Mortgage underwriters will need to see cancelled checks. These should be paid to you on about the same date and for the same amount every month. They also need to be deposited or cashed by you promptly when received, because underwriters look at the date they actually cleared the bank--not the date that's written on the front of the check.
This proven payment history will help ensure approval for a mortgage and possibly other types of loans as well. In addition, he needs to build credit. The easiest way to do this is to get a credit card or two , and charge one small purchase every month on each card, then pay the full balance s by the due date each month. I have a background in banking and finance, and advised my niece to do this. Within 3 years she had stellar credit. For everyone saying 'He's only 20, give him a break', I left home at 18 to serve this country, so yes, he's old enough to be paying something to cover his share of things.
Invest in stock markets using index-trackers If you're not familiar with the stock market, it can all seem a little bit daunting. Index-tracking stocks are fairly straightforward though, and more to the point consistently beat the vast majority of managed and hedge funds. In simple terms, these funds are a collective investment scheme that replicates the movements of one particular financial market eg.
This sort of investment works best when it's given several years to appreciate and mature, so think of it as a long-term venture rather than a get rich quick scheme. But be assured, over time your wealth portfolio will swell nicely. Get to grips with your pension Retirement might seem like a long way off yet, but sorting out a pension fund before you hit 30 is a very wise move. The benefits of pensions in growing your wealth are on a par with index-tracking investments. Even a modest amount put into a pension fund now can make a big difference in the future.
As with many of the other tips on this page, the key thing is to grow your knowledge of these major types of investment products available to you. You might be able to get a good pension through your employer, who often match every pound you put in, but don't forget to look at other providers too. Try to pick a flexible one, that allows you to pay in as much or as little as you can afford, with a low annual fee. Before retirement When you retire, you'll still require an income to cover not only basic living essentials like rent and food but to sustain the lifestyle you have worked so hard to achieve.
But you want to live like a millionaire, right? To get to this level of income without working requires a fairly sizeable pension plus a good number of other streams of income being earned every month on your capital assets. If you want to really live it up post-work, it's important to set an income goal before you retire that doesn't require you to work anymore. This number will vary for everyone, but whatever it is, pick one and work to it.
Instead of retiring at 70 you might find you're able to retire at 58 if you wanted to, because you've reached your goal. By the time you give up work, your investment portfolio becomes your income portfolio. To protect your nest egg you need to diversify… Diversify your interests Don't keep all your eggs in one basket. Over the years, you should aim to build up a portfolio of wise investments that will get you set for when you retire. All of these are sources of sustained income. This kind of balanced portfolio will leave you in a position to enjoy your retirement, rather than wondering how you'll afford it.
And with the UK's state pension getting worse each and every year, that's a very good position to be in. Write a Will Remember, whatever happens, you can't take it all with you when you're in the ground. After a life of saving and building up your wealth, you want it to fall into the right hands when you're gone.
And don't wait until you've gone grey, the earlier the better!
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Quick ways to becoming a millionaire legally. If the long but fool-proof road to becoming a millionaire that is, scrimping and saving as a graduate and building a well-balanced and sustained investment portfolio in your 30s onwards doesn't appeal to you, then there are other more creative ways to becoming filthy rich in a shorter time-frame. A million isn't what it used to be, but it's still more than enough to give you a very comfortable lifestyle. Whether you've got a couple of tenners spare or perhaps a couple of thousand, give some really serious thought to what you should do with it.
Rental Basics: What % should I charge my adult son for rent? - Trulia Voices
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