DON’T FOR­GET THE RULES

Good Housekeeping (UK) - - The Gh Report -

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.

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