Yes, it is possible to help adult
children financially without risking your own finances.
Lucy Lazarony
• September 26, 2019
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Children
are a joy, but they can be a pain in the wallet.
From
food and clothing to expensive schooling, the costs never stop for at least 18
years. And unfortunately, some parents continue to spend on them well into
their children’s adult years.
While
it’s great to help adult children stand on their own two feet, it’s easy to go
overboard. That can result in Dad and Mom saving little or nothing for
retirement — a surefire recipe for miserable golden years.
Fortunately,
it’s possible to help grown kids financially without spending money on them.
Here are several ways to do it:
1. Let
them use your car
When
you aren’t using the car, let your adult kids have it. However, don’t give the
keys to the kids if they won’t contribute to your car expenses
Owning
and operating a vehicle costs thousands of dollars a year, as we detail in “How Buying the
Wrong Car Can Cost You an Extra $3,725 a Year.”
One
idea is to charge your grown kids a set dollar amount per month or per mile
driven to offset wear and tear. Or, ask them to keep the gas tank full so you
never have to fill it. That way, it’s a good deal for everyone.
2.
Babysit
If your
kids have kids, offer to babysit — especially while your children are working
to earn some money of their own.
Even if
you charge your kids a little money for your services, you could still save
them money. The average babysitter’s rate is $16.25 per hour, according to Care.com, a website that connects parents with
local babysitters, nannies and other types of caregivers.
Check
out Care.com’s
babysitting rates calculator to get an idea of how much you could
charge.
Whether
you charge $5 or $10 an hour or babysit pro bono, though, the only cost to you
is your time. And you’ll be spending it with your grandchildren.
3.
Share your cellphone plan
The
per-person cost of an individual cellphone plan is generally more than that of
a family plan. So, putting adult children on your cellphone plan will likely
save them money.
Just be
sure to make them pay you for their part of the bill — their fair share. You
don’t want to be losing money paying an adult child’s cellphone bill.
4. Open
up your home
Letting
an adult child live in his or her old bedroom can easily save them hundreds of
dollars on rent every month.
It
costs money to have another loved one under your roof, however. For example,
your electric, water and grocery bills will go up.
So,
make these boomerang children pay for some things, whether that means picking
up the household grocery tab or making a small “rent” payment. Asking a son or
daughter to contribute means you won’t lose money.
5.
Allow them on your car insurance
Offer
to add your kids to or keep them on your car insurance policy — if they pay
their part of the bill.
It will
likely be cheaper for them to pay for their share of your policy than to get
their own policy. But it won’t cost you money.
6. Add
them to your health insurance
If your
medical insurance plan covers dependents, you generally have the option to have
your adult children on your plan until they reach age 26, according to
Healthcare.gov.
So,
allowing them on your health insurance plan and then having them pay their
share of the cost is another way to help them save on insurance without it
costing you.
Plus,
you get the peace of mind that comes with knowing your loved ones have medical
insurance coverage if anything should happen.
Have
you ever tried any of these options? Leave a comment below or share with us on our Facebook page.
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