4 Ways Parents Can Help Their Children Financially
For some people, moving out of your parents’ house can be one of the most financially and emotionally stressful experiences in early adulthood. It can be overwhelming to move out and realize you can’t take care of all the expenses. The last thing you want to have to do is move back into your parents’ home. So what can you do to get assistance?
Kind and caring parents will understand your struggle and try to help out in reasonable and reliable ways. This doesn’t mean you take advantage of their helping hand. Instead, you’ll use your parents as a safety net until you can be completely independent.
We’ll talk about all of the ways parents can help you if you are a young adult who wants to gradually fend for yourself, but isn’t all the way ready yet. There’s no shame in that. Teamwork is key to success in all avenues of life.
Car Insurance Costs
Can I put my car insurance in my parent’s name? This is one of the first things that comes into a young person’s mind when they have moved out but are still driving a car their parents bought and insured for them when they were teenagers. There is no reason why parents can’t continue to take this responsibility for you.
Young people get a raw deal in the insurance industry no matter how clean their driving record is. Insurance companies have data painting young adults as irresponsible drivers and a higher risk to file a claim on the road. Some of these high premiums will drop as you get into your late 20s and early 30s.
In the meantime, parents can carry the burden of helping you pay for these excessive fees. If you feel bad your parents are paying for insurance, you can always pay for a quarter or a half of the policy every month.
This is a compromise that will make you feel responsible while also not breaking your bank accounts when there are other expenses to handle.
Kids and parents hopefully already agreed on a safe vehicle that brings down insurance costs when the former got their license.
Insurance companies love when vehicles have high safety ratings, and they love it even more when drivers put in extra devices to monitor their safety. These can be apps on a cellphone or a device you can install in the car. Driving at safe speeds and not driving after dark will help bring insurance costs down for parents and kids alike.
Babysitting and Child Care
This category of expense doesn’t apply to every young adult, obviously. For the young parents out there, figuring out how to pay for child care while you go to work is one of the most stressful experiences while living on your own. An easy and cheap solution is to ask your parents for some babysitting help when you can’t take care of your child.
This is one of the most mutually beneficial parts of the parent-adult child relationship. As a young adult, you don’t have to waste money on costly day care. Your parents get to take on the rewarding role of being a grandparent. And the grandkids will get to have fun with loved ones instead of being with strangers in a day care facility.
This is a great way for your parents to cope with you an being adult and moving out. Your parents getting to experience being grandparents gives them a whole new emotional challenge and reward and it also takes care of so much financial stress for you.
This could also applyif you have moved out of your parents’ house and need someone to look after a pet while at work. Some people hire a dog walker, but this is also an extra expense that is unnecessary if parents can do the petsitting instead of hired labor.
Paying for Phone Bills
This is perhaps the most popular way many parents can continue to help pay for an expense in the lives of their grown children. Cellphones are essential in today’s society, but they are expensive to pay for the service plan. Many parents want to pay for this expense because they have been doing it for so many years without even thinking about it.
Your parents often sign up for family plans that give discounts when they put their children’s cellphones on the network. These family plans don’t disappear just because children have grown up and moved out of the house. Parents can leave their adult kids on the plan for as long as they think is necessary to help out.
Just like with the car insurance example, you can help pay for part of the monthly family plan bill and cellphone insurance if you feel guilty about your parents paying for it. This can really apply to any of the tips given.
In addition, you can limit your phone usage if you have a limited plan. This not only cuts down on bills, it can keep you safer when driving. Distracted driving can net you a ticket or worse, an accident.
Sharing expenses is a great way to take on gradual responsibility without losing everything you have in your checking account when leaving the family home.
Paying for Family Entertainment
Just because adult children move out of the house doesn’t mean they don’t come back home often. When you return to go out for dinner or a family fun night, ask your parents if they can pay at least partially for the night on the town. This will really help because you may not feel inclined to pay for anything fun when they are living on your own.
Parents paying for entertainment will help their you have a stress-free and relaxing experience that is in short supply. This also helps with your mental health, which may be taxed and in need of some familiar activities.
You can then return home refreshed and ready to put in a great week at work, which will help career aspirations and income.
Kids moving out doesn’t mean parents can’t still help. Remember, good parents never stop thinking about their children’s well-being. Whether they are 2 years old or 62 years old, the same feelings of love and affection remain. This is demonstrated by helping in times of trouble, and family ties will always remain in this way.
Shawn Laib writes and researches for the car insurance comparison site, CarInsurance101.com. He wants to help parents and their kids figure out the best ways to overcome financial hardship.