How much rent to charge 18 year old?

Not all homeowners can downsize.

Renting, for some people, is an attractive option. Housing benefit, plus possible pension credit. A landlord to sort out and pay for all your maintenance issues.

For us it’s 10% of her take home pay . She rarely buys food but does buy her own toiletries , phone bills and runs her car inc insurance

we don’t need the money but feel it’s important that she gets used to paying some sort of rent . Dd is good at saving and also adds £300 per month to her lifetime ISA

been paying since she started full time work at 18 and we have put into an account that she doesn’t know about . Currently stands at around 4.5k which we will give to her when she lmoves out for a deposit / furniture

We were given 1 year without rent (once working) then 10% of salary was rent. I think that’s fair.

You can downsize and release equity and believe me when you get to 50 it’s really nice to have paid off your mortgage and not worry about monthly payments. I now put everything into my pension. Financial security is very important to me.

I charge my daughter more than £200 a month. I am a single parent and a carer to her sibling so money is tight. I also drive her a round a lot (to and from work which is 40 minutes away) and I pay her mobile phone.

I paid £50 a week when I was 18……26 years ago.

Obviously it depends on your home and what you can afford. I wish I could charge my dd less or save some of her money for her but she’s doing pretty well on what she gets and has more money than I do. To rent a room somewhere would likely be over £450 per month in our area….plus bills.

Most of my children’s friends still live at home to save for their own home because they recognise that they now have to pay the same amount each month to rent a room in a houseshare as they would pay towards a mortgage and building equity. It makes sense to them. It doesn’t mean they are
obsessed or can’t travel or live abroad.
My children are dual nationals who have lived in 3 different countries and travelled a lot so I think you are making huge leaps about us in your imagination.

What??! 😆😆

Well I don't need to pay rent so I. But at present I don't gain anything from the "asset"

It's only any good if I sell it really.. before then it's not really equity as I can't do anything with it

How will you pay rent in old age if you are not earning anything? Or should I say WHO will pay your rent?
I can’t imagine on purpose not wanting to build equity and be on dependent on landlords my whole life into old age.

Holidays are a completely different things from long term travelling and working abroad though.

Why would anyone want to bring up their kids to be so obsessed with home ownership that they don't think outside the box.

It's a very narrow minded point of view.

My DS regularly tells me he doesn't understand why people think no further than school, uni but house get married and have kids and he's grown. up surrounded by people like it

Ofc if you plan to settle abroad that doesn’t make sense. I don’t understand your point exactly, as my children don’t plan to settle abroad and they do go on holidays.

Really surprised at the result!

What good is the asset when you need to live in it? I don't gain anything from owning my place, except repair bills

Because it costs money. If you are a 20 something still living with mummy so you can ave then you don't spend the money you have on travel. And is there much point buying a house in one country when you may not even want to settle there

It was a third of my take-home so I still had a third to save and a third to spend but it was more than friends gave their parents.
I had full sight of my mum's finances and worked out was was necessary to cover the bills.

Where did you make up the bit about being afraid to travel and work abroad. I have done both and at the same time owned property. Strange post.

I am not in a bubble. I understand some people can only afford to rent, but I would never encourage that as you are paying often more than if you were paying a mortgage with nothing to show for it at the end/ no asset. I worry about my retirement with a good pension and mortgage paid off. I can’t imagine being a renter facing paying rent in retirement and don’t think housing benefits is the answer. That’s just the young generation paying for increasing older generation who never built their own equity.
Anyway - this is derailing the thread a bit I think.

What a cosy little bubble you must live in. 35% of households (i.e. over a third) live in rented accommodation. Nearly a quarter of pensioners rent.

That amount was to cover all bills including food. I didn't live away from home until I bought a flat with now DH in 1987.
It was just how benefits were structured then. My mum was a widow and unable to work due to multiple health conditions. Her council rent went up when I left school and started working.
I was fully aware of her financial situation and the amount I calculated based on 1/3 keep; 1/3 save and 1/3 to spend.

I walked to school and received free school meals. My mum was unable to work due to numerous health conditions and was widowed when I was three.
I earnt my own spending money from quite an early age by babysitting and had a job in a newsagents on a Sunday from 16.
I was fully aware of my mum's finances by the time I started full time work and I decided on what I believed was a fair amount to give mum towards my keep.

It depends on what your bills are, surely? It's about £250 for us, which leaves £650 a month disposable income, more than most people have! For a teenager, that's huge!

I grew up knowing I would pay my parents a third, of whatever my salary was. Taught me to pay my way.

I was very surprised when I finally left home to receive a fair amount of that back. Went towards my first home. But it wasn't an expectation.

I have a Bangladeshi workmate who is the eldest son. He didn't pay keep but his wife moved in with his mother and him on marriage ( she was widowed) and she was financially supported by him since then and when she was elderly her DIL did all the care for her until her death. Apparently thats not unusual

Well, I know a lot about the culture in Spain given DH is Spanish.

Yes, adult children do help look after their parents but they absolutely are not expected to fund their retirement. It is actually seen as quite shameful to be taking money from your own DC.

The general culture is much more family-centric though and people muck in to help each other out. They will never see a family member struggle if they can help.

At 18? On £900 a month. That’s ridiculous.