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The Financial Costs of Allowing Adult Children To Move Back Home

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Financial Cost of Adult Children Moving Back Home

Young adults at the beginning of their careers have been hit especially hard by the pandemic. Due to the economic effects of COVID-19, 68% of entry-level job openings were eliminated. 

This left many new grads without a job or a way to support themselves. As a result, 32 million adult children have moved back into their grandparents’ or parents’ homes since April 2020. 

A recent survey showed that most parents are happy to have their kids return to the nest after college. But there is a financial cost to welcoming your kids home. Before you let your kids live in their childhood bedrooms rent-free, consider whether or not you can afford it.

Can You Afford To Let Your Kids Move Back Home?

You probably think that it doesn’t cost that much money to let your adult children move in with you. After all, you have the space and wouldn’t need to move into a bigger home to accommodate them. 

But according to a study by Porch, allowing just one of your kids to come back home will cost you $459 per month. Adding another person to your household increases your gas, grocery, and utility costs. 

Those expenses can add up and put a big drain on your finances, especially if you would’ve invested the money instead. Putting $459 per month into your retirement account for a decade could give you an extra $79,791 in retirement if it earns an average return of 8%.  

If you’re on track for retirement, you may be able to make that sacrifice. But if you’re one of the 40 million American households that doesn’t have a nest egg, you might not be able to afford to take your children in unless you charge them rent. 

Charging Your Kids Rent Is a Good Financial Compromise

If you have consumer debt or an underfunded retirement account, you may not be able to afford to house your adult children rent-free. But luckily there are ways to help them out without sacrificing your own financial future. 

Many parents in this situation ask their kids to help out with bills or charge them rent. Covering the utility bill or paying below-market rent will cost your kids far less than living on their own. They’ll still be able to pay off their student loans or build up savings without putting financial strain on you. 

If They’re Unemployed, Ask Them To Contribute in Other Ways

But what if your child’s income source dried up due to the pandemic, leaving them without a lot of spare cash? They can still chip in by doing chores and maintenance around the house. Ask your child to mow the lawn so you can stop using a landscaping service and save money. If you order takeout because you don’t have time to cook, your child can help you out by making dinner. 

Encourage them to keep applying for jobs aggressively so they can get on their feet. Even if they can only find something part-time or outside of their degree field, emphasize that it’s better to have some money coming in than none. Although you may love having your kids at home and getting to spend extra time with them, it’s important for them to understand that it’s not a permanent solution.

They still have to contribute to the household and make strides towards becoming independent adults. You won’t be around to support them forever, and you have your own financial future to worry about. So don’t be afraid to set some boundaries and give them a timeline for when you’d like them to move out.

Read More

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Reasons Not to Co-Sign on Your Grandchildren’s Student Loans

Why More Young Adults Get Help from Mom and Dad

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8 Economical Gifts You Can Give To Your Kids

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toddler playing with gifts

It can be tricky to give gifts to children because they easily outgrow things, such as clothes and toys, so quickly. That’s why it’s crucial to be economical and practical when choosing presents for your kids.

Being economical entails more than looking for the cheapest price tag. You also have to consider the object’s capacity to grow with your child. You should be looking for quality and longevity so that the gift can be enjoyed for a long time, giving you more bang for your buck.

Here are a few economical gift ideas for your kids:

  1. Gift Cards

Gift cards combine the practicality of cash with the benefit of limiting where your child can spend their funds. Aside from allowing them to buy what they want, gift cards are valuable for teaching kids the concept of credit, especially when they see that the amount decreases as they purchase more things. With gift cards, you can help young ones wrap their head around this abstract concept.

You can find lots of different gift cards for food, entertainment, and retailers, like Target, Amazon, and Walmart. Boost your economizing efforts by earning free Steam gift cards through rewards and loyalty programs that your kids can use on the digital gaming platform.

These are the benefits you’ll reap when you give gift cards to your kids:

  • Teaches Responsibility – Explain to your child that they should take care of their gift card. Encourage them to keep it in an appropriate place so that it won’t be lost when you go to the store to purchase their toy or game.
  • Boosts Math Skills – There’s a specified amount of funds in every gift card. For instance, they have 50 USD worth of credit, which they used to buy a toy for 20 USD. It’s an excellent time to teach them about mathematics. You can even check their skills by having them deduct the price in their head.
  • Tests Kids’ Decision-Making – Your kid can also learn the challenges of choosing what toys or games to buy with their gift card. Prepare yourself to spend a long time in the department store before your child can make a decision. Help them out by letting them list the pros and cons of a particular product.
  • Instills Empathy – You’ll get the chance to teach them about empathy as well if you’re only giving one child a gift card and not their siblings. While they may not be as open to sharing their bounty, you can guide them on how to comfort their brothers and sisters.
  • Builds Anticipation – If you and your child decide to save some of their credit for your next trip to the store, you can let your kid experience the thrill of waiting for their reward and show them how delaying gratification can make receiving gifts more exciting.

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  1. Art Supplies

It’s never too early to cultivate your kid’s love for art. Give them coloring books and materials to help them express themselves through drawing. This specific type of gift is economical because your little one can continue using them even when they grow older, so long as they take care of the supplies.

Crayons, watercolors, and colored pencils are the best coloring tools for kids. If you have toddlers, make sure to get age-appropriate ones, which are usually thick, so that younger children can hold them better.

You can also economize on paper by upcycling old calendars and other scratch papers. With this, you save on buying drawing books and bond papers while helping reduce waste.

  1. Craft Materials

Aside from art supplies, crafts are also another way that your kids can use their hands to create something new. Glue, rubber bands, Popsicle sticks, cotton balls, packing tape, and yarn are some must-haves that your craft gift basket should contain. Pipe cleaners are versatile materials that your children can turn into anything they want as well.

Craft materials are practical gifts because kids of all ages can use them to create a new toy or doll. If you’re planning to reward all of your children, you can just buy one gift, and everyone can have an enjoyable and creative time together.

  1. Paper Books Or E-Books

Teaching kids to enjoy reading is one of the ways to prepare them for success later in life. Give them printed books that will transport them to different amazing worlds where everything is possible.

Just like art, you should encourage reading as early as you can. Make the activity more enjoyable by bonding with them as you flip through the pages and get to know the different characters and their stories.

If you’re planning to give books to infants and toddlers, you should look for board books that have thick pages with a glossy finish to withstand wear and tear. Three-year-olds and elementary-aged kids will love picture books that incorporate art and reading, helping retain their attention. There are also interactive books that engage children with activities, like imitating sounds or drawing onto the page.

Some books that teach the fundamentals to younger children are:

  • Alphabet – This type of book often comes in board book form and illustrates different objects that begin with a particular letter. Repetition is the key when helping your kids store the information in their memory.
  • Counting – Books are also useful in teaching kids how to count because they provide a visual for the numbers and how many objects each one entails. This medium makes the abstract concept easier to grasp.
  • Nursery Rhymes – Children enjoy reading nursery rhymes aloud. The music or melody that accompanies the words can also boost memorization. Plus, the characters and stories also help them learn how to identify objects and ideas.
  • Fairy Tales – This type of book entertains, as well as teaches kids moral lessons. Fairy tales are great for bedtime to lull your little one to sleep and make them drift away into a fantastical world of princes, princesses, dragons, and other mystical beings.
  • Informative Books – These are non-fiction books that teach children about the world around them. There are stories about morning routines and life at school. The best thing about this type of gift is that you can choose from a wide variety of topics to fit your child’s interests.

Older children, like those who are aged eight and up, may find e-books more convenient. With just their mobile devices, they can bring around their favorite titles and read anytime they want. It’s better if you opt for a subscription to an online library to give your child access to thousands of books, allowing them to choose ones that catch their attention.

economical gifts for your kids

  1. A Special Outfit

Do your research to determine your child’s budding style and find an outfit that you think they would love. It doesn’t need to be something fancy or too formal. If they’re a fan of Disney princesses, you can buy them a costume and make them live out their dream.

Nonetheless, if you want something that they can use regularly, you can opt to give them a special shirt, dress, pants, or even shoes. The key is to acknowledge your kid’s taste. This is particularly valuable if you often have a power struggle in the mornings when picking out an outfit for school.

  1. Toy Blocks

Toy blocks are versatile toys that you can give to your kids and expect them to enjoy these stuff even when they’re older. For toddlers, these blocks can help strengthen their fingers and hands, as well as improve hand-eye coordination, while older children can boost their imaginations through pretend play.

You can also use blocks to teach your kids about colors, shapes, and sizes, as well as size comparisons (big vs. small). Moreover, this type of toy can give children an idea of gravity, balance, and geometry through practical means.

  1. Classes

Your child, as young as they are, may already be showing interest in music, dancing, arts, cooking, or even carpentry. Help them become better at what they do by enrolling them in these types of extracurricular activities. Make sure, however, that you’re not pushing your child to do something that they don’t enjoy.

If you feel like their interest may just be a fleeting fancy, book a trial class first to let them get a feel of what they can expect to learn. You can make the task even better by joining them in the class since it can serve as your quality time without their other parent and siblings.

  1. Musical Instruments

Musical instruments are economical gift ideas because they can also grow with your child. You can start by buying them toy instruments, such as the piano, guitar, drums, violin, and flute, and using these toys for object identification.

If you see that they’re leaning toward a particular instrument, you can invest in something that’s a little more high-quality. You can even enroll them in classes that will equip them with the necessary skills to play.

Conclusion

In this day and age, it’s only practical to think about the cost of buying gifts. When looking for the perfect toy or item to give your child, you should consider their interests and the quality of products aside from the price tag. Check these economical gift ideas to see which ones align with your kid’s preferences.

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Study Shows Video Games Are Good for Kids in Small Doses

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Study: moderate amounts of video games are healthy for kids
Research published this week in The Journal of Pediatrics shows that video games might not be as bad for kids as most people think. Console and handheld fantasy games have previously been portrayed as having monstrous effects on children, supposedly causing everything from increases in violent behavior to intimacy problems and emotional detachment. This made a lot of parents try to steer their kids away from video games toward other activities such as board games. But according to Andrew Przybylski, an Experimental Psychologist and research fellow at the Oxford Internet Institute in the UK, these negative attributes may not be true.

He decided to take a closer look at the issue and made some interesting discoveries about video games and the mental health of children between 10 and 15 years old. The study collected data on 5,000 UK-based girls and boys, asking them how often they play, how long they play and what they feel like before, during and after they play video games. It also posed specific questions to the children on how satisfied they were with their lives, whether they would help if they saw someone in trouble, how well they got on with children of the same age and how easy it was to concentrate.

After analyzing and comparing the data between players and non players, he concluded the kids who played video games for a short time each day were not only more satisfied with their lives, they got along better with others and didn’t blame or externalize their problems as much as non-players did.

But there were other factors which need to be taken into account when considering the results. As Reuters reports, “The game’s content and whether or not a parent plays with the child may be more important to mental and social health than how long the game is played.”

The study also showed more than three of hours of video gaming per day would have a negative effect on children. Przybylski told the BBC that this is likely because of a reduction in other family orientated and rewarding activities. He said factors such as the strength of family relationships will play a large role in determining the mental health of a child.

It can’t be denied that video games have a bad reputation. Some researchers think they are beneficial while others link them to violent acts. But it’s refreshing to see some research that provides a more balanced point of view. Could it be that, much like other aspects of life, moderation is the key to video game guidance? According to this study, it may actually be OK to allow our kids to blow off some steam in the digital world.

It’s nice to know if we make sure kids receive plenty of love and attention when they’re away from the screen, we can allow them to be kids, to share the language and adrenalin of gaming, and to have some fun in their spare time without dire consequences for doing so.

(Photo courtesy of Eric Holsinger)

Father Claims Land and Declares Himself King so His Daughter Can Be a Princess

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Father claims land in Africa to make is daughter a princess for her birthday wish
How far, and at what cost, would you go to to get your daughter a birthday gift she desired? Would you be willing to travel half way around the world, create a country and declare yourself king to make your child’s birthday wish come true? That’s exactly what one father decided to do when his daughter made a birthday request most parents would have smiled at and then promptly forgotten.

The name Jeremiah Heaton may sound vaguely familiar to residents of his home state Virginia, where in 2012 he ran a failed campaign for congress. But Jeremiah Heaton is also about to become a rather well known man in Africa as the self-proclaimed leader of the Kingdom of North Sudan.

His journey to royalty began at his daughter Emily’s 6th birthday party. When asked what she’d like for her 7th birthday, the precocious youth wished to become a princess. Many parents would see this as a ludicrous desire bred by fairy tales and Walt Disney, but Jeremiah was not to be swayed. Within a year, he had delivered on his promise.

He did his research, found some unclaimed land, then traveled through the Egyptian desert to plant the family’s flag. This somewhat amateur declaration made her a princess. Although it’s been overlooked by many reporting on the event, it also made him a King.

The Kingdom of North Sudan is an 800 square mile slice of desert close to the Sudanese border. Heaton told The Washington Post that he believes his claim is legitimate. “He argues that planting the flag — which his children designed — is exactly how several other countries, including what became the United States, were historically claimed. The key difference, Heaton said, is that those historical cases of imperialism were acts of war while his was an act of love.”

The Bristol Herald featured a statement from Sheila Carapico, Professor of Political Science and International Studies at the University of Richmond. She says, Heaton’s first steps to legal sovereignty will be getting Egypt and Sudan on board. “It’s not plausible for someone to plant a flag and say they have political control over the land without legal recognition from neighboring countries, the United Nations or other groups. In addition, she said, it’s not known whether people have ownership of the land, regardless of whether the property is part of a political nation.”

At the time of writing the United Nations Headquarters remained silent on the matter, while Jeremiah Heaton continues to promote his somewhat misguided attempt at leadership and fatherhood.

(Photo courtesy of Ed Uthman)