Researchers have been taking a closer look at the slowdown in household formation, which is a slow household growth that leads to a slower demand for homes on the housing market. One of the reasons for a recent slowdown in the past few years is the fact that young people are still living with their parents or doubling up with roommates rather than living on their own in a house.
For instance, in 2013, 31% of 18 to 34-year-olds were living with their parents instead of on their own. Even those who retain jobs are choosing to live at home with their parents. Are you a parent who thinks it’s time to talk to your child about finally leaving the nest? There are options to help them transition into this new life easily, knowing that you are giving them the right tools.
No parent wants to tell their child that they have to leave the nest without giving them adequate information on what to expect and how to survive without issue. As a parent, this may be a difficult time for you as well, since you have grown so accustomed to having your child under your roof. With this newfound freedom, however, you will find that all parties will be at peace. Here are a few tips to help you prepare your children for life beyond “home”:
Financial Software: Your child should always understand basic and semi-complex financial matters before they leave the nest. You can give them the proper tools by helping them learn how to use financial software programs like Mint.com, Quicken and TurboTax.
Credit: Your child should also be prepared to use credit cards on their own and what it will do for them in the future of finances. Ensure that they are prepared to pay their bills on time and understand the consequences of missed payments. Their credit record will help them in every aspect of their lives, such as getting loans and more.
Insurance: Teach your child why insurance is important and how it works. Main bread winners with a family should not be without life insurance. Auto insurance with proper limits is essential. Having enough homeowners insurance and keeping it up to date can make all the difference should you experience something like a total loss from fire. Many in Northern and Southern California are dealing with the impact of being underinsured right now. Some sort of disability insurance can save a family from complete devastation. Insurance for those things that could ruin you financially are essential. Start early to explain these things to your kids.
Loan Repayment: If your child still has college loans to pay, then you should always look over the repayment options to set them up for success. You may look into the option of loan consolidations a way to extend the life of the loan and lower your child’s monthly payment so that they can look forward to taking care of other bills on their own.
Renting Aspects: If your child is moving into their first apartment, it helps to prepare them for life in an apartment, such as their rights and responsibilities as a renter and the initial costs they should be prepared for, such as every utility. You should also teach them what to look out for on a lease and what can happen if the rules are broken.
House Preparations: If your child is moving into their first house, they should understand housekeeping practices and how to take care of a home. This includes how often to clean certain areas of the home, how to avoid pest infestations, how to do the wash and what days trash is picked up, and any other safety practices that will prepare them for the future.
You are the best teacher when it comes to helping your child understand how to keep up with a new home. Give your children the right tools to leave the nest and move into the next steps in their life.