Determining Fair Contributions from Adult Children Toward Household Expenses
Many families face the challenge of setting fair living arrangements when adult children move back home. This article explores the financial and practical aspects of how to determine appropriate contributions from adult children towards household expenses such as rent, utilities, and other costs.
Setting Rent and Essentials Contributions
When adult grandchildren move into your home, it's important to establish clear expectations regarding financial responsibilities. Providers of housing should ensure that living conditions are fair and that adult children understand their financial obligations. For instance, setting a monthly rent of $250 and expecting the children to cover their own food, cleaning, and other essentials can be a practical approach. This model not only ensures that each individual is responsible for their basic needs but also provides enough of a household contribution to maintain the home.
Establishing the Baseline
Adult children over 18 who have full-time jobs should contribute at least $125 per week towards their food, laundry, and other incidental expenses. This baseline standard helps to ensure that adult children are financially responsible and capable of managing their own expenses.
Family Variations
It's important to recognize that every family situation is unique. For example, my brother lived with my mother until he was 38 and contributed only a weekly ride to the grocery store. On the other hand, my brother-in-law contributed to the family budget regularly until he was 38. Meanwhile, my son moved out after he graduated college and never lived with us as an adult. Each situation requires careful consideration and a mutual agreement for what is fair within the family dynamics.
Reaping the Rewards of Parental Support
Adult children should aim to contribute at least 50% of their share of household expenses, including rent, utilities, and even servant salaries. This recognition of the invaluable support they have received from their parents over the years encourages grateful and responsible contributions. In the long term, these contributions help to alleviate some of the financial burdens on parents who have nurtured and provided for their children over the years.
Current Living Costs and Expenses
Currently, living expenses can be substantial. For instance, a rent of $30 per month and utilities that can vary depending on usage. Potential additional expenses include auto loan payments of $20 per month, taxes, car payments, insurance, utilities, and groceries. While costs have increased over the decades, the principles of fair contribution remain consistent. Historically, living in Berkeley, California in 1972, a one-bedroom apartment could be secured for $125 per month with a gross salary of $1250, corresponding to just 10% of the income.
Fast forward to 1973, when purchasing a three-bedroom, two-bathroom home with a 1973-style garage required a mortgage of $450 per month, with a gross salary of $1650, representing 25% of the income. Today, typical contributions might range from 30% to 40% of rental income towards utility and other fixed expenses, encompassing a broader array of current financial obligations.
Given the complex array of expenditures in today's world, it is crucial to establish clear and fair financial expectations. Setting reasonable and agreed-upon contributions can help maintain a harmonious family environment and promote responsible financial management among adult children.