They may have just graduated from college or high school and are looking for work. Student loans or other debt may require them to save money. Maybe they’ve hit a rough patch and need a safe place to land.
The U.S. is seeing more adult children living with their parents. Multigenerational households accounted for 25% of adults 25-34 in 2021, up from 9% in 2010. In 68% of cases, one or both parents lived in the home.
According to Karen Fingerman of the University of Texas, Austin, this study found that young adults accounted for 20% of the income in these multigenerational households. Fingerman said, “It might be worthwhile debunking the myth that young adults are freeloaders.”
Rent may be charged to your adult child, depending on your circumstances. These scenarios require new conversations about obligations and responsibilities, including financial ones, regardless of whether the living arrangement was planned or unexpected.
It is critical to set your child up for independent living while encouraging them to act like adults. Jeffrey Jensen Arnett, the author of “Emerging Adulthood: The Winding Road from the Late Teens through the Twenties,” believes charging rent to an adult child is perfectly reasonable.
According to Arnett, all adults in the house are responsible for paying household expenses. Despite being adult children, a 19-year-old and a 40-year-old have very different needs and resources. Renting to your adult child? Here are some things to consider:
- What is your child’s situation?
- What is your situation?
- What are your child’s goals?
- How much should you charge?
- What should you include in your rental contract?
In the end, a fair contribution is more important than the amount of your child’s “rent” payment.