College students Living at Home

[2rocky]

Curious to get some ideas for my daughter who will be starting Junior College next fall.

She will be living at home while she attends school and plays basketball.

I feel like she needs to understand how to be a roommate and budget for expenses she will encounter after moving out in a couple years.

Couple of ideas crossed my mind:

• Pay herself $X into her existing Stock Investment account for "rent"
• Assign dollar values to house chores to pay "rent".

Her sources of income will be scholarships, as well as receipts from calves from her cattle breeding herd, and market animal receipts from previous years.

The idea is to not stress her financially since she will be doing sports and won't have time for a job. But I do want her to go through the motions of financial management

Other Ideas welcome

 

[Jamen]

I paid a monthly rent plus some of the expenses for the house. One thing i have had a few friends' parents do. Collect a monthly amount from their child. Parent sets that aside and when the kid moves out, they give it back for a down payment on a house or moving expenses new furniture etc.

 

[Bowhuntrben]

I won't be at this point with my kids for a while, but I like the idea mentioned of making them pay "rent" but then just giving it back to them for a house payment or whatever. Not sure what to do if your tenant doesn't make a payment though

 

[SD_Prairie_Goat]

Curious to get some ideas for my daughter who will be starting Junior College next fall.

She will be living at home while she attends school and plays basketball.

I feel like she needs to understand how to be a roommate and budget for expenses she will encounter after moving out in a couple years.

Couple of ideas crossed my mind:

• Pay herself $X into her existing Stock Investment account for "rent"
• Assign dollar values to house chores to pay "rent".

Her sources of income will be scholarships, as well as receipts from calves from her cattle breeding herd, and market animal receipts from previous years.

The idea is to not stress her financially since she will be doing sports and won't have time for a job. But I do want her to go through the motions of financial management

Other Ideas welcome

Do you think she doesn't know how to budget? Because living on your own in college is more than just paying rent.

In my opinion it's more about learning how you can stretch a dollar. Paying rent is a part of it, but I think it's more about how do you save while shopping for groceries, prioritize food over fun etc. Your option will address one of those pain points but if you're still buying food, paying utilities, etc she'll miss on that learning.

I've always seen the hardest thing to teach is, just because you have a pile of cash now doesn't mean to eat crab dinner at the casino every night. You have x years of school to pay for and live through, so start buying Ramen now rather than when the bank account is at zero in year three.

 

[Bob-WY]

Biggest lessons in college, IMO, aren't financial, but time management. Tuition is paid, if in dorms so is all else. Early in college biggest reason kids fail is time management and responsibility to get stuff done without mom and dad reminders. Homework, study, eat, sleep, make friends all a balance in time. Want a Sarurday to do something fun? Get ahead on school work.

Later in college move to apartment or apartment dorms where you need your own food. That brings in money management

 

[nrpate05]

Will she be working? If so, have her pay you some sort of nominal rent, and then invest it for her. When she moves out, give her back whatever she paid you plus anything you made with the investment and explain to her what you did. She can use that money to jump start a career, down payment on a house, etc.

 

[sclancy27]

I would have them pay a certain amount (couple hundred dollars) and put it into a money market account that goes to them when they are ready to move out (would not tell them). It gives them ownership of the place they live and shows how money and discipline work when they move out.