[Finance] Do you charge your kids rent ?

[WATFORD zero]

I've no idea what class you are. I was addressing those that do this pretend housekeeping malarkey.

I realise how upsetting the middle class tag can be for the middle classes. Generations of being riddled with guilt. It's probably why lots of them these days run around giving their kids old fashioned working class names like Bill, Maude, Fred, Lily, Tom, Dick and Harry

That'll be me then, what class am I ?

And obviously I missed a trick with my kids and should have pissed the housekeeping they gave us up the wall and then tell them they're on their own. That would obviously be a much better 'life' lesson

With social housing now pretty much smashed to smithereens by years of Thatcherite politics, many working class kids, without the bank of mum and dad, an inheritance, or their years of 'housekeeping' money being given back to them (lol), only have a lifetime of exorbitant private rents to look forward to.

How much housekeeping do you think people are taking off their kids if they're managing to get enough for a deposit on a property I think you'll find everyone who has given back housekeeping money has done it as a little bit of help towards something their children are saving towards anyway.

You really seem very angry about parents taking money off their kids and then not spending it. Is there a reason ?

 

[drew]

Quite!

This taking 'housekeeping' money then giving it back later is a bit of a delusional way middle class parents have of teaching kids about money. It's a nice thing to do if you can, I get that. It's in human's nature to protect their own and give them an advantage over others. The nature of the beast perhaps, and why so many attempts at wealth distribution and more equal societies rarely, if ever, come to fruition.

What is being taught here to these middle class kids, is not solely the value of hard work and budgeting . No, what is actually being taught is that opportunity always trumps hard work in a class based system. Those middle class kids get a massive leg up over their working class counterparts. With social housing now pretty much smashed to smithereens by years of Thatcherite politics, many working class kids, without the bank of mum and dad, an inheritance, or their years of 'housekeeping' money being given back to them (lol), only have a lifetime of exorbitant private rents to look forward to. Likely life will always be a financial struggle for them, no matter how hard they work or how 'careful' they are with money. Meanwhile, their middle class counterparts will likely get themselves straight on the housing ladder and have some financial security to look forward to whilst being told how much they deserve it as they worked so hard to get there and how they had some great money management lessons taught to them by their parents. No, what they had mostly was quite simply this.... Opportunity.

Why on earth are you bringing class into it? Looking out for your kids is surely something everyone does although not necessarily in the same way. I would suspect there are many that claim to be working class but actually live a middleclass lifestyle. Own or are buying their home, have a comfortable salary etc etc. It's not where you're from, it's where you are.

 

[BN9 BHA]

My lad who is 25 and just finishing his Masters at Brighton gives us zilch. He earns 75 quid a week for his one day at work but I cut him far too much slack I know but he is a very good athlete and trains like the full timers … I’m forking out for his hotel and train to Manchester for UKs next week. I’m very proud of what he has achieved but it ends in late September for good
( )
I’ll watch this one on the tv.

He gives you a run for your money

 

[mejonaNO12 aka riskit]

Quite!

This taking 'housekeeping' money then giving it back later is a bit of a delusional way middle class parents have of teaching kids about money. It's a nice thing to do if you can, I get that. It's in human's nature to protect their own and give them an advantage over others. The nature of the beast perhaps, and why so many attempts at wealth distribution and more equal societies rarely, if ever, come to fruition.

What is being taught here to these middle class kids, is not solely the value of hard work and budgeting . No, what is actually being taught is that opportunity always trumps hard work in a class based system. Those middle class kids get a massive leg up over their working class counterparts. With social housing now pretty much smashed to smithereens by years of Thatcherite politics, many working class kids, without the bank of mum and dad, an inheritance, or their years of 'housekeeping' money being given back to them (lol), only have a lifetime of exorbitant private rents to look forward to. Likely life will always be a financial struggle for them, no matter how hard they work or how 'careful' they are with money. Meanwhile, their middle class counterparts will likely get themselves straight on the housing ladder and have some financial security to look forward to whilst being told how much they deserve it as they worked so hard to get there and how they had some great money management lessons taught to them by their parents. No, what they had mostly was quite simply this.... Opportunity.

This is 100% spot on and I'm so glad someone has said it.

My 5 year old had the utter cheek to ask for a bowl of Weetabix this morning. I did what any self respecting parent would do.

I made the food in front of her, then ate it myself in front of her and said "what have you done to earn this?"

After she got back from the garden where she had to source her own nutrition, we got her stuff ready for ballet. I'd obviously burnt her ballet outfit in front of her previously so she was wearing an outfit made out of a bin bag. Off we went in the car. I stopped 5 miles short and told her to walk. "Who pays for the diesel?" I asked.

i look forward to her coming home later and thanking me for the lesson I've taught her.

I am NOT having my child grow up thinking she gets things for free.

I wish there were more people with their head screwed on like you.

 

[southstandandy]

No. When they started working and lived at home for 2 years before finding their own accomodation we said as long as 50% of what you earn is saved we'll let you stay rent free. Over that time they both managed to accumulate close to £30k in savings giving them just enough to get on the property ladder. This was though 10 years ago, and our son actually stayed at home for 2 years 4months before moving out. Our daughter also got a 2nd job in the evenings.

Their extra expense was minimal as they both ate meals at their employers and often went out with frineds at weekends. No regrets from us as they were both determined to buy and we were happy for them to save for their deposits (neither had a holiday either so kept their costs down until they moved out).

Now we're grandparents - that's where the costs are now really kicking in!

 

[Questions]

He gives you a run for your money

He got quick by running away from me when I was I gonna clip him round the earhole..

 

[Perkino]

I moved in with a friend and his parents when I was 18 and they asked for 25% of my weekly take home. They were helping me out and I was with them for about 18 months. I still see them almost 20 years later and with 3 children of my own.

I plan to ask for a 25% contribution from my own children once they are earning but like many others I plan to squirrel it away to return it to them when they will make good use of it.

 

[Weststander]

Quite!

This taking 'housekeeping' money then giving it back later is a bit of a delusional way middle class parents have of teaching kids about money. It's a nice thing to do if you can, I get that. It's in human's nature to protect their own and give them an advantage over others. The nature of the beast perhaps, and why so many attempts at wealth distribution and more equal societies rarely, if ever, come to fruition.

What is being taught here to these middle class kids, is not solely the value of hard work and budgeting . No, what is actually being taught is that opportunity always trumps hard work in a class based system. Those middle class kids get a massive leg up over their working class counterparts. With social housing now pretty much smashed to smithereens by years of Thatcherite politics, many working class kids, without the bank of mum and dad, an inheritance, or their years of 'housekeeping' money being given back to them (lol), only have a lifetime of exorbitant private rents to look forward to. Likely life will always be a financial struggle for them, no matter how hard they work or how 'careful' they are with money. Meanwhile, their middle class counterparts will likely get themselves straight on the housing ladder and have some financial security to look forward to whilst being told how much they deserve it as they worked so hard to get there and how they had some great money management lessons taught to them by their parents. No, what they had mostly was quite simply this.... Opportunity.

You’ll find this is getting worse and more than you may know. There’s a prevalent thing now of wealthy middle class grandparents pumping in steady large sums into their grandkids newly arranged SIPP’s, LISA’s and ISA’s. Not necessarily multi millionaires, the levels below that. Set fair themselves in turns of income, able to pour money in so that at age 25 to buy a house or age 58 to retire early, their descendants have a great financial future. Another one in 2023, I know people doing this, is to acqure expensive buy to lets with inheritances, arranging the shareholdings across their array of descendents.

You’d have heard the term money makes money, it is 100% true.

An anecdote, the many people I know doing this stuff are not Tories. Instead proudly Green or Labour. Just goes to show, money/wealth will always trump morality.

 

[dazzer6666]

You’ll find this is getting worse and more than you may know. There’s a prevalent thing now of wealthy middle class grandparents pumping in steady large sums into their grandkids newly arranged SIPP’s, LISA’s and ISA’s. Not necessarily multi millionaires, the levels below that. Set fair themselves in turns of income, able to pour money in so that at age 25 to buy a house or age 58 to retire early, their descendants have a great financial future. Another one on 2023, I know people doing this, is to acqure expensive buy to lets with inheritances, arranging the shareholdings across their array of descendents.

You’d have heard the term money makes money, it is 100% true.

An anecdote, the many people I know doing this stuff are not Tories. Instead proudly Green or Labour. Just goes to show, money/wealth will always trump morality.

Yep…..and they’re doing it relatively early as it potentially saves vast amounts of inheritance tax too. Keep enough for your lifestyle and a bit spare, then spend or give the rest away……..

 

[BRIGHT ON Q]

Yep. Charged my boy 25% once he was working full time. Put it all away and when he started looking for a flat with his girlfriend I gave it all back to him (plus some other money from an inheritance) so he had enough for a deposit.

I think it's good to charge them a bit of rent to get them used to paying their way; fortunately we were in a position to squirrel it away for him.

Out of interest, did he know he was getting it back or was it a surprise?

 

[Weststander]

Yep…..and they’re doing it relatively early as it potentially saves vast amounts of inheritance tax too. Keep enough for your lifestyle and a bit spare, then spend or give the rest away……..

Economically/fiscally I’ve never been a socialist, hard to pin down, but probably centre right and wanting a decent safety net for the vulnerable etc.

But surprising myself, I minded that something needs to change. The UK is increasingly haves and have-nots. The haves go way beyond a few landowning Tory supporters. Southern England has imho many 100,000’s of folk in £1m plus homes, with a couple of buy to lets with very significant equity, and the best part of £1m in SIPP’s/ISA’s. Able to get their kids onto the property market when young, able to set up lucrative SIPP’s running for 18 year olds in the family.

Whilst the rest are destined to work to 70, unable to get on the property market and so bound to high rents for good.

Something’s got to give. I’d wager that Starmer won’t do anything significant about the above. Taking 0.5% a year in wealth tax from toffs will barely touch the sides.

I’d be interested to know what @1066familyman, @Machiavelli and @Harry Wilson's tackle think.

 

[dazzer6666]

Economically/fiscally I’ve never been a socialist, hard to pin down, but probably centre right and wanting a decent safety net for the vulnerable etc.

But surprising myself, I minded that something needs to change. The UK is increasingly haves and have-nots. The haves go way beyond a few landowning Tory supporters. Southern England has imho many 100,000’s of folk in £1m plus homes, with a couple of buy to lets with very significant equity, and the best part of £1m in SIPP’s/ISA’s. Able to get their kids onto the property market when young, able to set up lucrative SIPP’s running for 18 year olds in the family.

Whilst the rest are destined to work to 70, unable to get on the property market and so bound to high rents for good.

Something’s got to give. I’d wager that Starmer won’t do anything significant about the above. Taking 0.5% a year in wealth tax from toffs will barely touch the sides.

I’d be interested to know what @1066familyman, @Machiavelli and @Harry Wilson's tackle think.

Yep…the split is becoming more and more prevalent……we’ll end up something like Brazil if things are allowed to continue.

 

[Weststander]

Yep…the split is becoming more and more prevalent……we’ll end up something like Brazil if things are allowed to continue.

I’m all for enterprise, graft.

But much of this wealth stems purely from luck. Granny dies, the one or two kids inherit £750,000. Buying a buy to let or two, giving Freddie or Lottie a £125,000 deposit on a home and paying off their student loan.

Rinse and repeat as the eldest pass away. Family wealth grows exponentially.

 

[1066familyman]

Economically/fiscally I’ve never been a socialist, hard to pin down, but probably centre right and wanting a decent safety net for the vulnerable etc.

But surprising myself, I minded that something needs to change. The UK is increasingly haves and have-nots. The haves go way beyond a few landowning Tory supporters. Southern England has imho many 100,000’s of folk in £1m plus homes, with a couple of buy to lets with very significant equity, and the best part of £1m in SIPP’s/ISA’s. Able to get their kids onto the property market when young, able to set up lucrative SIPP’s running for 18 year olds in the family.

Whilst the rest are destined to work to 70, unable to get on the property market and so bound to high rents for good.

Something’s got to give. I’d wager that Starmer won’t do anything significant about the above. Taking 0.5% a year in wealth tax from toffs will barely touch the sides.

I’d be interested to know what @1066familyman, @Machiavelli and @Harry Wilson's tackle think.

I think you're spot on with that one, and yes something's got to give.

Not really much point me saying anything else on the matter though, as the resident pretend Lefties will just put up the Wolfie gags again.

 

[South Stand Bonfire]

Economically/fiscally I’ve never been a socialist, hard to pin down, but probably centre right and wanting a decent safety net for the vulnerable etc.

But surprising myself, I minded that something needs to change. The UK is increasingly haves and have-nots. The haves go way beyond a few landowning Tory supporters. Southern England has imho many 100,000’s of folk in £1m plus homes, with a couple of buy to lets with very significant equity, and the best part of £1m in SIPP’s/ISA’s. Able to get their kids onto the property market when young, able to set up lucrative SIPP’s running for 18 year olds in the family.

Whilst the rest are destined to work to 70, unable to get on the property market and so bound to high rents for good.

Something’s got to give. I’d wager that Starmer won’t do anything significant about the above. Taking 0.5% a year in wealth tax from toffs will barely touch the sides.

I’d be interested to know what @1066familyman, @Machiavelli and @Harry Wilson's tackle think.

No, nothing is that black and white. I’ve made a decision to continue working to help my daughter out because I have benefited (by age) of being able to afford to buy a house ( no where near £1m!) and whilst I have a decent pension (in 9 years time) my priority is to help my only child out as much as I can. I haven’t voted Tory since I was 21 by the way and can’t recall why I did at the time. And yes, I do agree that the better off should pay more tax.

 

[KZNSeagull]

I’m all for enterprise, graft.

But much of this wealth stems purely from luck. Granny dies, the one or two kids inherit £750,000. Buying a buy to let or two, giving Freddie or Lottie a £125,000 deposit on a home and paying off their student loan.

Rinse and repeat as the eldest pass away. Family wealth grows exponentially.

Why would they pay off their student loan? No point unless you are a high earner already, is there?

 

[dazzer6666]

Why would they pay off their student loan? No point unless you are a high earner already, is there?

Nope…….good article here (which I agree with having looked into in detail for one of our kids)

https://www.moneysavingexpert.com/students/repay-post-2012-student-loan/

 

[Weststander]

Why would they pay off their student loan? No point unless you are a high earner already, is there?

This really does happen, all my wealthy associates paid off their kids loans mid 20’s.

Why:
- Because they’re rich.
- Their loved ones don’t then suffer 9% deductions from their London salaries as solicitors or surveyors.
- They have a clean financial slate when taking out £400k mortgages on £800k first time homes, no student loan aids affordability to buy a far bigger home and get a cheaper percentage on the mortgage on LTV.

 

[KZNSeagull]

This really does happen, all my wealthy associates paid off their kids loans mid 20’s.

Why:
- Because they’re rich.
- Their loved ones don’t then suffer 9% deductions from their London salaries as solicitors or surveyors.
- They have a clean financial slate when taking out £400k mortgages on £800k first time homes, no student loan aids affordability to buy a far bigger home and get a cheaper percentage on the mortgage on LTV.

Well that's very nice of them.

 

[Weststander]

Well that's very nice of them.

I think most people haven’t a clue what’s going on in this country. There’s a very wealthy (all assets considered) middle class of possibly millions, toying with their BTL’s and/or vast sums in SIPP’s/ISA’s.