So,
what should you do if your child returns home?
First, it’s important to establish an open line of communication and
clearly state expectations. Whenever
there is a situation involving lending money, expectations need to be set. We would do that with a rental unit or with a
mortgage, and the same rule applies here.
When
it comes to setting expectations with your child, two things are involved. First, your child needs a clearly defined
timeframe – how long is he/she allowed to live in your home and when is he/she
expected to move out? Sometimes this can
be a difficult goal to set because you’re simply not sure what the future will
hold for your child. We would encourage
you to set an initial timeframe up front, but realize that it can always be
amended down the road. Second, you need
to determine what your child will contribute to live in your home. Will your child pay rent or for
groceries? If you plan to charge your
child rent, be sure to communicate that up front so he/she knows what to
expect. If you don’t plan to charge your
child rent, consider other ways he/she can contribute around the house in the
form of chores and duties. We often
remind my oldest son, who is very responsible, that this is not a hotel and
that he has to pitch in with the chores. That means that we actually have clearly
stated chores and a set rotation; whether that is mowing the lawn, washing
dishes, cooking dinner, etc.
Another
issue to consider with your adult child living at home is student loans. If your child recently graduated from
college, he/she may be weighed down with debt and student loans, which may be
why they returned home in the first place.
Be sure to have a conversation with your child about their loan pay back
plan. One option you have is to charge
your child a certain amount each month while they live with you to apply
towards paying back their loans. If
you’re not charging them rent, they can use the money they are saving and apply
it towards their student debt.
These
are conversations that need to happen as soon as your child returns home. Although these conversations can be difficult
to have, their importance can’t be overlooked.
Not only will you be helping your child develop good financial habits,
but you will also be protecting your retirement savings and your financial
future.
Regarding
these situations and conversations, we often use the phrase, “if you are tough
on yourself, life will be easy. If you
are easy on yourself, life will be hard.”
Although these conversations may be uncomfortable and tough to have,
they are always worth it.
For more topics like this, check out our radio show
“Retirement Plain and Simple” every Saturday morning at 8 on WNPV 1440 AM and like
us on
Facebook!
If we at Kemp
Harvest Financial Group can help you in any way with regard
to your financial planning needs, please feel free to contact us.
Securities and investment advisory services offered through National Planning Corporation (NPC), NPC of America in FL & NY, Member FINRA/SIPC, and a Registered Investment Adviser. Registered Representatives of NPC may transact securities business in a particular state only if first registered, excluded or exempted from Broker-Dealer, agent or Investment Adviser Representative requirements. In addition, follow-up conversations or meetings with individuals in a particular state that involve either the effecting or attempting to effect transaction in securities, or the rendering of personalized investment advice for compensation, will not be made absent compliance with state Broker-Dealer, agent or Investment Adviser Representative registration requirements, or an applicable exemption or exclusion. Kemp Harvest Financial Group and NPC are separate and unrelated companies. NPC PRIVACY POLICY. NPC #96541 05/17
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Author: Mark Kemp, President and CEO, CFP®, AIF®
Mark
Kemp is the founder of Kemp Harvest Financial Group and has over twenty-five
years of experience in the financial services industry. Mark is a CERTIFIED FINANCIAL PLANNER
professional, completing the program in Financial Planning at the New York
University School of Continuing and Professional Studies in Finance, Law and
Taxation. Mark holds FINRA Series 6, 7,
24 and 63 licenses. Mark enjoys using
his knowledge and experience to educate and help his clients identify their
financial goals.
