DON’T FORGET THE RULES

Young adults are more likely to be sharing a home with their parents now than at any time since 1996, so it’s important to set a few financial guidelines, say the GHI experts 1 You want to help your children, but who are you really helping if acting as a safety net undermines your ability to provide for your old age? Overstretching yourself will rebound 2 in the long run. Repeat after us: ‘I am not the only source of support and advice available to my kids.’ They have more time ahead to save and make good financial choices. Point them in the direction 3 of moneyadviceservice.org.uk. You could boost your income and instil an awareness of the cost of living by charging a modest rent. Under the Government’s Rent a Room Scheme, you can earn up to £7,500 a year in rent without paying tax – including if you rent to family. There is an online calculator to work it out depending on your postcode. Not sure how much to charge? Go to comparethemarket.com/ home-insurance/content/pa-rental. 4 If they can’t afford to rent, teach kids that life’s not free. Think outside the box. Giving money isn’t the only answer, so exchange your below market-rate board and lodging for their help. Find ways for them to contribute to the household, such as by doing gardening 5 or cooking. If they are going to contribute financially, make sure it is documented, at least by email. Getting things confirmed in writing isn’t about showing a lack of trust, it 6 prevents misunderstandings. Help them establish a good credit rating – they’ll need this in order to borrow money (whether they’re saving for a mortgage or car). So, as well as a bank account, they should ideally have a credit card to build credit history, and be on the electoral roll.