Many Australian parents face decisions regarding financial contributions from adult children residing at home. The increasing cost of living is frequently cited as a major factor influencing these arrangements.
Parenting expert Justin Coulson suggests that charging adult children board or rent can foster independence. He emphasizes the importance of clear communication and setting firm boundaries, noting that parental financial obligations typically conclude when children turn 18 or complete high school, whichever is later.
Financial adviser Kate McCallum views shared living as an opportunity for young adults to gain practical experience in financial independence.
For adult children employed full-time, Ms. McCallum recommends a "bottom-up cost build" of the household budget. This method involves detailing standard household expenses, such as utilities, groceries, internet, and subscriptions, and potentially including mortgage or rent. The total cost is then divided by the number of adults in the household to determine individual contributions. She stresses that involving young adults in understanding the budget process is crucial for improving their financial literacy, beyond merely making payments.
For adult students or those working part-time, a percentage-based model is proposed. This could involve charging a percentage of their monthly income (e.g., 20%) or a percentage of the local market rent for a comparable room. The goal is to establish an amount that is reasonable and achievable, not punitive. Dr. Coulson's family, for instance, charges 10 percent of their children's earnings.
If parents choose not to charge board, Dr. Coulson advises establishing clear "ground rules" for household contributions through chores like cooking, cleaning, or laundry. Experts universally recommend formalizing any agreements in writing and obtaining signatures from all parties, as this practice is associated with increased adherence.
Dr. Lixia Qu from the Australian Institute of Family Studies identifies both benefits and drawbacks of multi-generational living. Advantages include strengthened family bonds and mutual support, while potential tensions may arise from differing habits and lifestyles. She underscores the significance of mutual respect and clear expectations for all household members.