Teaching teenagers and school leavers the financial skills they need for when they move out of home can be a difficult task.  Parents can often feel that their actions are too tough or that their job is to provide everything their child requests. 

So how do you know what is right for you and your child?  Well here is one tip for you to consider. 

Should Parents charge Rent or Board to their kids?

Many parents feel that charging their children rent or board is tough. However, as a parent you can make this tip really work for you and your child.

If you are in a position where you don't need your children to contribute to the household expenses, still consider charging rent to provide your kids with the benefit of having to account for the big expenses of living out of home.

If your child isn't able to pay their rent for one week, you can choose to provide them a loan that they repay the following week. It is much easier to miss a rent payment to your Mum and Dad than it is to miss a rent payment to your landlord!

Once your children are paying rent, you can choose how to bestspend that money for the benefit of your child and the family.

The money can be used to pay for the additional food and clothingcosts that come with teenagers or you may decide to invest the money.

With the increasing costs of weddings and houses, the money your child pays in rent can be put aside by you to cover these future costs.

When your child starts saving for a house deposit, you can offer that for every dollar they save, you will match (up to a set limit) to make saving that deposit a bit easier.

The money they have paid over the years is then given back to them, giving to your child twice. They will not only learn how to manage money well, they will receive a house deposit too! 

What better gift could you give to a young adult?

Whether you choose to use the rent for the additional household expenses, your child's education costs or to be put aside for a wedding or house deposit, is your choice!

It is important for children of all ages to understand that they need to contribute to the household expenses, even if they may eventually get that money back!

If you have younger children this Money Tip here is just for them.