How to guide your adult children to financial success
By ATB Financial 25 October 2018 1 min read
Don’t worry, you’re not the only parents having the “honey, let’s get rid of the kids” conversation. According to Yconic, 59% of 20-24 year old Canadians still live with their parents. Although there are often good reasons for adult children remaining in the nest, including high housing costs and the financial strain of post-secondary education among them, a not-so-empty nest can wear on your patience and your finances. And if you ask sociologists about the whole “failure to launch” phenomenon, you may not be doing your kids any favours by providing free room and board with no end date in sight. Here’s a 3-point plan to get your kids on the path to financial success, and out of your basement.
Make them pay rent.
They learn to budget and manage expenses, which makes the transition to independence easier.
Focus on a goal.
Teach the importance of financial goal setting and developing the habit of putting money into savings. This goal could be a down payment on a home, a car, tuition, or something else that is important to your kids’ independence and success.
Match their savings.
Make your kids’ rent money their contribution to their savings goal and offer to match their savings. This gives them extra incentive to save and reach their goal twice as fast.
By using these three tips to teach your children good budgeting and saving habits, you’ll not only nudge them to leave the nest, but can rest assured that when they do, they’ll be on track for financial success.