Parents with "young working adult" kids

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.
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flametree
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Parents with "young working adult" kids

Post by flametree » Fri Jul 12, 2019 8:51 pm

hi there,

My eldest has just entered the work force and I have entered another parenting phase. I would like to brainstorm ideas or seek advice from parents who are in similar position as me with regards to money matters with our "young working adult" kids.

thank you in advance

flametree

slmkhoo
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Re: Parents with "young working adult" kids

Post by slmkhoo » Sat Jul 13, 2019 9:51 am

Mine are not there yet as they are still 2 yrs to graduation, but we have thought about it a bit. I guess in terms of money, it would be good to get them to contribute some money each month towards household expenses. Some of my friends insist on this not because they need it, but because it is a sort of enforced savings for their kids - they intend to "return" it when the child decides to get married, buy a flat etc. (But it may be a good idea not to tell the kids this at this point.) It also gives the young person an idea of how much it costs to just live - it can be a shock to them when they finally live alone how things like toilet paper and laundry detergent can eat away your money!

Besides that, it may be a good thing to get them to start putting some money aside in non-risky investments, buy some life/health insurance, and just ordinary savings (for holidays, gifts, flat, wedding etc). My husband is already thinking about these things for our girls (I'm not very clued in about these things). He's already got them to open investment accounts with an investment firm and they put in some money when they get hongbao etc, but we will encourage them to do it more regularly once they get regular pay.

All this means that they will have quite little disposable income! This is not a bad thing as it will prevent them from developing high-spending habits which a lot of young adults living at home do.

flametree
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Re: Parents with "young working adult" kids

Post by flametree » Sat Jul 13, 2019 11:18 am

Hi slmkhoo,

Thks for responding. I’m very fortunate to be in similar position as your friend and coincidentally I intend to do exactly the same as what your friends r doing.

Besides ‘contributing’ to the household expenses, for his and her (I hv 2 kids who just graduated this month) personal expenses , such as toiletries, petrol n cash card TOP up (they borrow my car almost every week) etc etc, I’ve been wondering should I be ‘calculative’ with them? I hv also thought abt annual family holidays, should we still be paying for them ? Any opinions? Thks!

slmkhoo
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Re: Parents with "young working adult" kids

Post by slmkhoo » Sat Jul 13, 2019 11:29 am

flametree wrote:
Sat Jul 13, 2019 11:18 am
Hi slmkhoo,

Thks for responding. I’m very fortunate to be in similar position as your friend and coincidentally I intend to do exactly the same as what your friends r doing.

Besides ‘contributing’ to the household expenses, for his and her (I hv 2 kids who just graduated this month) personal expenses , such as toiletries, petrol n cash card TOP up (they borrow my car almost every week) etc etc, I’ve been wondering should I be ‘calculative’ with them? I hv also thought abt annual family holidays, should we still be paying for them ? Any opinions? Thks!
Personally, I think that it's good to establish the basic understanding that they are responsible for everything that is "theirs", including holidays, gadgets, meals etc. But that doesn't mean that parents can't be generous on occasion. So for family holidays, if it's really quite a strain for them, parents can pay the airfare or some specified chunk of it as a gift. I think it's not a good idea to underwrite expensive things completely as they will not think carefully about whether it's necessary, or take it for granted.

flametree
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Re: Parents with "young working adult" kids

Post by flametree » Sat Jul 13, 2019 11:51 am

Thks for brilliant idea! Now I hv a basic ‘guideline’ n clearer idea that as Long as its personal expenses, it should be from their own pocket (unless it’s a gift fr ya for special occasions). Will hv a family meeting to make it all clear to them soon. Appreciate your sharing! Thk u once again


Czeec80
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Re: Parents with "young working adult" kids

Post by Czeec80 » Tue Jul 23, 2019 11:20 am

Following this thread.. I will have a young working adult kid in no time and I like how you share all the 'guidlines' here. It is always best to talk about it to make all things clear..

flametree
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Re: Parents with "young working adult" kids

Post by flametree » Tue Jul 23, 2019 3:07 pm

Hi czeec80,

My guideline now will be ‘as long as it’s personal item’ young working adult will be footing the bill. Example IT gadgets, contact lens, clothings, bags, shoes etc. But items like common use toiletries ( I still got another 2 younger kids at home) then they no need pay for them. My husband and I still at the ‘exploring state’. We are still thinking hard abt how to ‘calculate’ petrol usage and cash card decduction when working kids use my car for their own outings. Also thinking hard abt their insurance policies that we took up for them since birth..
Please feel free to share.

slmkhoo
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Re: Parents with "young working adult" kids

Post by slmkhoo » Tue Jul 23, 2019 4:12 pm

For the use of the car, the most accurate is to have them record the mileage and cash card expenses (like for claiming from employer), but it's troublesome. Or just do an estimated average and charge a set sum every month. It really depends on whether your kids are the kind to drive even more when their contribution is not usage-based. If they are generally restrained, an average per month is simpler. The aim is for them to realise that driving a car incurs expenses, not that you really want to get every cent back from them. For insurance, you may want to see how much their starting pay is, and whether they can afford it. If it's a lot and their starting pay is low, you could ask them to pay 50% for the first year, then increase to 75% then 100% over the next 2-3 years.

flametree
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Re: Parents with "young working adult" kids

Post by flametree » Tue Jul 23, 2019 5:31 pm

Hi slmkhoo,

Thanks for sharing. I’m more inclined to do the estimated average n charge a set sum every month. I probably will ask them to note the mileage used for one month trial n then determine the amt they shd contribute.
As for insurance, we are thinking of letting them pay for the coverage type of policies eg medical insurance, personal accident policies etc after one year working. For the rest of policies with cash values, we probably will continue paying them ourselves till we deem it’s time to pass the cash value policies to the kids. Thoughts?

slmkhoo
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Re: Parents with "young working adult" kids

Post by slmkhoo » Tue Jul 23, 2019 6:56 pm

That one, I've no opinion! I don't deal with such financial stuff, and my kids don't have any policies at the moment. We have not bought any for them. My husband plans to advise them to buy some once they start work, so I guess they'll be paying!

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