Should You Charge Your Grown Kids Rent?

Cover via AmazonThings sure are different these days. With the bad economy and lack of jobs more kids are coming back to the nest to let the parents take care of them. I guess I was lucky, I moved out at 23 years old and have been supporting myself ever since. 


In my house we have 5 grown kids and one 12 year old. The oldest has been out for several years, three are in college, and one is just bumming around. With the 3 in college, one lives at home and the others away. The ones that are away love their freedom and do not want to come back. But the one resident child we have has no intention of leaving for the near future. His failure to launch or even prepare to launch is frustrating us.

It has crossed our minds to charge him rent. Financially it is our plan to downgrade in house so as to cut down our expenses and save more for retirement. Plus the large house takes a lot of money for maintenance, which could be used for savings and fun. With no plans to leave the home we are getting anxious over the problem.

Related:

• How Do You Help Your Grown Kids Financially Without Hurting Yourself?
• Baby Boomers Spending More Cash On Their Family, Than On Their Own Future

There are two sides to this issue. Many parents see it as their duty to continue to care for their children no matter how long it takes for them to become independent. They may feel as if they are taking advantage of their children by taking rent money from them, especially if the child is living at home to save for a house of her own.

On the other hand, many parents believe that charging rent helps their children mature and learn responsibility.

As this chart depicts there is a increasing trend of the so called "Boomerang Kids" coming home more and more. 

Under 35: Living with Parents vs. Homeownership rate

I think when a child reaches 23 years old and up they have an obligation to contribute to the family home. Is $50 per week so much to ask? Some parents believe and I do to that you are teaching that it's OK to depend on mom and dad when things are not going to well. Being able to come back to the nest may get to be a habit if the grown child is given free room and board. Are we as parents teaching are children well by making it easy for them. Free rent can encourage an entitlement sentiment in your children. For their sake charging them rent teaches many lessons. 

Now if there is some financial hardship for the child not to pay, then letting them stay for free is giving them necessary help in time of need. 

Strike a Balance

If you feel bad about taking money from your children then I propose you take it anyway and save it for when they move out. It can be used as a deposit, money to cover moving expenses, or to buy furniture. Your conscience can be relieved with this option.

However, the decision is ultimately yours as a parent.  You should make your decision based on what is best for your child. Does your decision move them forward or just enable them? Just make sure when your adult child moves back in that the ground rules and financial expectations are clearly outlined.



Related:

• Loans To Your Children - Great Idea?
• Top 3 Ways to Help Your Adult Children Become Financially Independent

Top 6 Ways to Get Your Spouse Out of Credit Card Debt

 (Photo credit: Wikipedia)

Credit card debts can be a big problem both for you and your spouse. No matter who is actually responsible for piling up the huge debts on the cards the other has to bear the burden of it too. At times it may get difficult but you just cannot leave your spouse to suffer alone. Stress, tensions and heated arguments will only make matters worse. It is better that you keep your calm and find a way out by which you can help your spouse resolve his/her debt issues instead of fighting on it.

A helping hand from your end is all that your spouse can ask for! The rest of the things are sure to fall in place. So here are some quick ways to deal with the credit card debts of your spouse without affecting your relationship:

1. Know the problem in details: You need to know how grave the financial situation is and how much debts you actually have to deal with. Ask your partner to be honest about the debts and to share all the necessary information with you. Analyze your financial situation well and deal accordingly. Assure him/her that together you can resolve the problem and there is nothing much to worry about.

2. List down your debts: It is also important that you make a list of all that debts that you or your spouse owes. It will help you to have an idea of the money that you need to save in order to pay them off completely. You can thus design your budget plan better.

3. Design a monthly budget plan: It is important that you make a monthly budget plan and stick to it. You need to reduce your monthly expenses as much as possible so you can save some money to pay off the debts at the end of each month.

4. Follow the budget plan: Just designing a plan will not help. You need to make a realistic plan that you will actually follow. Make sure that you stick to the budget as much as possible and follow a lifestyle accordingly.

5. Keep track of expenses: You need to be extra cautious of every penny you spend. Keep track of expenses of both your own and that of your spouse. Do not buy things that you don’t need. Impulsive buying during such time is not a good idea. Before buying an expensive item make sure that you both agree on the purchase of that particular item.

6. Note your credit report improvement: If you start paying off your debts every month, your credit report will slowly show some positive changes. Take a note of it and make sure that the paid off debts are marked and your negative points are removed accordingly.

You also need to make sure that you handle all of it calmly. Keeping a grudge against your partner or making a relationship sour will not be a fruitful solution. You need to maintain proper understanding in order to resolve such a situation.

Author bio: Jonny is a financial advisor with EasyFinance.com. He helps people to resolve their credit card problems and also problems related to home equity loan, personal loans, and other loans.

Get Yourself Out of Debt Now! (Heres How)
How to Get Out of Debt, Stay Out of Debt & Live Prosperously By Mundis, Jerrold

Invoice Finance and its Operations

There comes a time in a business when funds are needed. The business may be doing well but cash flow needs are inevitable. In order for the business to continue in operation, measures to bring in cash flow are approached. There are ways that can bring in operational cash flow to your business. Invoice Finance comes in handy. Before you choose this method to finance your business, it is good to understand how it operates.

Invoice finance is available for all trading people. Invoice financing is basically, the sale of your invoices. Normally they are sold at a discount, to a factor for instant cash. A factor in this case is the third party. Invoices are transactions between the seller and buyer. When a third person comes in this deal then he or she is a factor.

When you issue an invoice, it means that there is money expected. After invoicing, the money is received at a certain period. The agreed period must reach maturity before it is paid. A factor can avail this money on accounts receivable in advance. This money is availed in a certain percentage that is also agreed.


This method of invoice finance can be embraced. You will not need to go through the bank loans procedures to finance your business. It is an easy and quick way of obtaining cash flow. As we all know that banks loan procedures can be a hassle.

On the same note, it is good to understand that a certain discount will be allowed for a sale of an invoice. The factor only gives quick cash and not loaning the business. Also bear in mind that completion of services must have been rendered before a sale of an invoice. Credibility of your client must be met too. This is good approach too, because you can choose the invoices to sell. Moreover, you do not have to sell all your invoices. Choices of the most beneficial ones can be made.


There are banks too who deals with invoice finance services. Going to a bank can a better option. You will be in a position to decide which bank to visit. You can consider some details like speed, efficiency and dependability before buying a service from a certain bank. Banks coverage is a vital tool too. Don't choose a bank that is limited to a certain region too.

In matters quick cash, choose a bank that carries out the service online as well as round the clock. Some take credit history seriously, so if you don't meet these criteria, apparently they are some banks that exempt this detail. Whichever one you choose, consider one that is friendly to your kind of business.

So, is your business in dire need of quick funding? You can relax because invoice finance service can rescue you. If you have just ventured into a business, you are safe too. This can also serve as a source of your capital. You only need to meet the credit worthiness.

Kate Ford is Tech writer from the UK. Catch her @thetechlegend on Twitter

Shopping for Life Insurance? 4 Things to Consider

Universal Life Insurance Company (Photo credit: Thomas Hawk)

Life insurance, for most of us, is not a huge priority in our minds. Especially if you are middle aged with young children, you probably think that you have lots of time to make decisions in regards to life insurance. But the truth is that life insurance is as important for your children and spouse as is saving money for your kids' college tuition. Here are a few things together as you shop around for a life insurance policy.

1. Don't be fooled by whole-life insurance.

While life insurance can be fairly complicated, you should know from the get-go that life insurance falls into two major categories—term life insurance and whole life insurance. One thing that's important to be privy to when shopping for life insurance is that whole life is almost always going to be a sucker bet. Life insurance agents get as much as 80% commission on whole life insurance, so they'll obviously try to push these types of policies much more vociferously than term life insurance. Whole life can be fairly risky, since the policy is tied up not just in premiums you personally pay, but in investment funds as well. Since most people have so many other, more secure options to invest in, like 401ks, it's best to separate life insurance from investment. Don't be conned into whole life.

2. It's not worth lying in your application to cover up health or lifestyle risks.

Unless your employer covers life insurance, most people don't really start thinking about life insurance until they're older and in poorer health. Of course, if you smoke, are very much overweight, have unusual or costly health problems, or your job is particularly risky, you're going to end up paying more for your life insurance policy. Many people try lying on their applications. Perhaps they try to cover up a smoking habit. While you can probably get away with lying about smoking on a tenant application, lying about smoking for life insurance is very risky. If you are found out (and trust me, life insurance companies investigate), you can be denied coverage. Even worse, after your death, your dependents may never see a dime and may even be entangled in legal problems in the courts. Be honest.

3. Do your research.

Even for those who are experts in insurance, life insurance can be a jungle. Don't just jump on the bandwagon with any policy or company. Spend as much time researching as you can. Read reviews, and understand precisely what you are getting yourself into. Despite my previous work experience in the insurance industry, I won't hesitate to say that the industry is filled with scams. You'll not necessarily get the very best deal, no matter which company and policy you decide on. But you can certainly mitigate risk by becoming as informed as you can. Don't overlook the power of knowledge.

4. The earlier you acquire life insurance, the better.

As noted earlier, most people don't think about life insurance until they are older, just as most people don't start investing for retirement until they are nearing the end of their careers. If you want to score an affordable policy that will fully take care of your dependents in the event that you pass away, then apply for life insurance immediately. Of course, it's not impossible to get decent coverage in your later years, but it'll be much more expensive, and not quite as secure.

More than even health insurance, life insurance can be very complicated. However, if you do your research and follow the above steps, you future (and the future of your loved ones) will be protected. For more information about life insurance, check out this CNN Money series. Good luck!

Susan is a freelance blogger who enjoys writing about automotive and health news, technology, lifestyle and personal finance. She often researches and writes about automobile, property and health insurance, helping consumers find the best insurance quotes online. Susan welcomes comments.

5 Reasons to Invest in a 529 Plan

 (Photo credit: Wikipedia)

According to a recent survey 50% of American families do not have a monthly budget, save for retirement or college expenses. The lack of personal finance knowledge in America is a major problem. A new survey by brokerage firm Edward Jones claims that 62% of these households never heard of a college savings 529 plan.

The 529 plan is the best way to save for a child's education. It's the primary way to accumulate a nice tax-free investment account for your child's education. 

According to the Edward Jones survey, the number of people who understand what a 529 plan is rises with a family's income. Only 27% of those surveyed who make less than $35,000 a year knew was a 529 plan was versus 57% for those making between $75,000 and $100,000. And 62% of respondents earning more than $100,000 a year were familiar with 529s.

• Roth IRA vs. 529 plan - Which is Better for College Savings?
• 10 Frequently Asked 529 Plan Questions

5 Reasons to Invest in a 529 Plan

1. When you invest in a 529 plan, it's safe from federal income taxes and almost always state taxes as well. As long as the cash remains inside the account no taxes are generated.

2. You can take out money for qualified college expenses such as tuition and room/board without paying taxes.

3. The states offer their own 529 plans and about three dozen of them offer residents some sort of tax deduction for their contributions. Consequently, you should look first at your own state plan if your state offers a tax benefit. If the state plan is weak, look elsewhere. 

4. For competitive reasons, the costs of 529 plans have been dropping, which is great for investors. When evaluating plans, make sure you look at what the built-in cost of these plans will cost you because you won't be getting an invoice. The fees are withdrawn automatically.

5. These college savings plans routinely include age-based investment options. Age-based investing is easy because the accounts automatically grow more conservative as the children near their college years. 

Pension Reform Needed Around The World [infographic]

A sustainable pension system still eludes many countries. The employer doesn't want to fund it and taxpayers do not want to pay for it through taxes. For us 50 plus people, the system will see us through but the ones who will have the most difficulties with a funded retirement are the workers 40 and younger. The broken pension system we now have, plus the poor economic environment we now are experiencing, have created a the perfect storm. 

Here is an infographic depicting current U.K. pension reform problems.

This is an infographic on pension reform is supplied by Money Infographics, a site that hosts personal finance infographics