[Finance] Do you charge your kids rent ?

[WATFORD zero]

My cat needs a home

She looks less vicious than my daughter. She was back from Australia for a few weeks and went back last week. She heard me on the phone to the will writer and I told her my plan for the Cat's home. She told me not to forget who would be choosing my nursing home, so I told her I could develop an expensive drug habit in my remaining time, and then wouldn't give a toss where she put me

We'll pick up in March when she's back for good. My son is staying well out of it (takes after his father, not his Scottish mother)

 

[Machiavelli]

Just one last one on this. When my kids were paying us money they had no expectation of 'getting it back' and thought they were contributing to the household bills. It was only years later, when my son was saving to pay off his Uni loan and my daughter was saving to go travelling that we said to them you've got a couple of grand more than you thought from the housekeeping you paid (and I appreciate we were lucky to be able to do that).

It was a little bit of help with the things they were working very hard and saving up for.

I've told the kids that when we go, my daughter is getting my sports car (which she wants), my son my vintage instruments (which he doesn't) and the rest is going to the Cat's home

I've always found that cat charities are desperate for money in this country
In answer to what you're doing in this post and the OP, we have a 16yo who is spending even more of his time on Instagram, etc now he is not at school, post-GCSEs. I'd like to do something similar to what you've done, but a couple of developments:
-- his birth coincided with the bond Gordon Brown set up, so he's got that (which one set of GPs have also contributed towards, and my partner and I did until I indicated that we couldn't afford to)
-- if he continues with his Instagram, etc fascination, I'm keen to prevent or delay him going to university
-- if he gets a job (which might happen, for we have a plan), I'll see how much he's earning but, related to your OP, there is also the question of pocket money, which he still gets.

 

[Tim Over Whelmed]

Lad in FT work (20) pays £300 a month, and youngest (17) and in college and PT work pays nought, at the moment

 

[Machiavelli]

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.

How long this dire predicament continues is anyone's guess, but one of the key requirements to get us out of the mire is for the likes of the reassessment that you are going through.
I'll say something that I often say: read Piketty. I'll mention two points he makes:
1, he has a simple equation for assessing the history of capitalism: r > g
r is the rate of return on capital, g is growth. 1920s to 1980, g < r. 1980>, r > g (compounded since 2008 by a low growth regime).
When r > g, those with assets outstrip those without -- whatever happens.
2, if you want a solution to r > g, then read ch 17 of Capital and Ideology where he lays out a blueprint (ie, ideal scenario) for 'participatory socialism'. I suspect that this is utterly different to your understanding of 'socialism' (but don't want to put words in your mouth), and think that it takes account of the benefits of free markets that you admire (as do I fwiw) while actually expanding economic opportunities and dynamism for the majority and, at the same time, avoiding so many of the myriad of problems we're living through currently.

Piketty is just one of a new wave of interesting developments in economic thinking. Kate Raworth Doughnut Economics, and Marianna Mazacutto also worth having a look at.

 

[WATFORD zero]

I've always found that cat charities are desperate for money in this country
In answer to what you're doing in this post and the OP, we have a 16yo who is spending even more of his time on Instagram, etc now he is not at school, post-GCSEs. I'd like to do something similar to what you've done, but a couple of developments:
-- his birth coincided with the bond Gordon Brown set up, so he's got that (which one set of GPs have also contributed towards, and my partner and I did until I indicated that we couldn't afford to)
-- if he continues with his Instagram, etc fascination, I'm keen to prevent or delay him going to university
-- if he gets a job (which might happen, for we have a plan), I'll see how much he's earning but, related to your OP, there is also the question of pocket money, which he still gets.

My daughter after finishing college, preferred hanging around the house with her boyfriend to working. She still had a Saturday job at Primark and I agreed with her that as long as she did 25hrs per week (always lots of available shifts) her boyfriend could come round whenever she wanted and if she didn't he couldn't. After about 4/5 weeks of that she got a 'proper' job and worked solidly, saving for about 7 years in order to go travelling.

Every single situation (and individual) is different and all you can do is give it your best shot, encourage them and hope for the best. It normally seems to work out

 

[BBassic]

I was charged rent when I was a teenager, think it was about £100pcm which seemed fair enough to me.

If I have kids I'll probably do the same but I'll pop the money into a high interest account (if they exist by the time I have kids) and then give it to them when they move out.

 

[Weststander]

How long this dire predicament continues is anyone's guess, but one of the key requirements to get us out of the mire is for the likes of the reassessment that you are going through.
I'll say something that I often say: read Piketty. I'll mention two points he makes:
1, he has a simple equation for assessing the history of capitalism: r > g
r is the rate of return on capital, g is growth. 1920s to 1980, g < r. 1980>, r > g (compounded since 2008 by a low growth regime).
When r > g, those with assets outstrip those without -- whatever happens.
2, if you want a solution to r > g, then read ch 17 of Capital and Ideology where he lays out a blueprint (ie, ideal scenario) for 'participatory socialism'. I suspect that this is utterly different to your understanding of 'socialism' (but don't want to put words in your mouth), and think that it takes account of the benefits of free markets that you admire (as do I fwiw) while actually expanding economic opportunities and dynamism for the majority and, at the same time, avoiding so many of the myriad of problems we're living through currently.

Piketty is just one of a new wave of interesting developments in economic thinking. Kate Raworth Doughnut Economics, and Marianna Mazacutto also worth having a look at.

On a day trip just now. Will endeavour to get my head round that at home .

Late to the party, I’ve only just cottoned onto the fact that the vast majority of wealth in the UK (and France, Germany, Switzerland) is owned by 20% of households. Generally not built on endeavour or passing professional exams, but the exponential rise in asset values 1995 to date. Homes, BTL’s, SIPP’s, ISA’s and other wealth under management. The 20% would include many round these parts.

Taxing toffs worth £10m or non-doms would barely touch the sides. Reluctantly they’d hand over a percent or so in additional taxes, but would make little difference to the 5.5m household in private renting for example. Income tax isn’t the answer for a variety of reasons. Has to be capital taxation.

Crikey, how can this be tackled?

 

[Peacehaven Wild Kids]

Surely anyone residing in a family home that is of working age should contribute to the running of the home?

This/End of thread/nail on head/etc etc

 

[Icy Gull]

We didn’t but we insisted they had jobs in school/university holidays once they were 17.

They had both moved out by the time they were 22 as well….

 

[Thunder Bolt]

On a day trip just now. Will endeavour to get my head round that at home .

Late to the party, I’ve only just cottoned onto the fact that the vast majority of wealth in the UK (and France, Germany, Switzerland) is owned by 20% of households. Generally not built on endeavour or passing professional exams, but the exponential rise in asset values 1995 to date. Homes, BTL’s, SIPP’s, ISA’s and other wealth under management. The 20% would include many round these parts.

Taxing toffs worth £10m or non-doms would barely touch the sides. Reluctantly they’d hand over a percent or so in additional taxes, but would make little difference to the 5.5m household in private renting for example. Income tax isn’t the answer for a variety of reasons. Has to be capital taxation.

Crikey, how can this be tackled?

The majority of people in Germany rent rather than buy.

 

[Weststander]

The majority of people in Germany rent rather than buy.

I know, it’s a cultural thing and governments/banks made lending fraught.

The wealthiest 45% of Germans home own, the wealthiest 50% of French do.

Wealthy Germans and French have seen their wealth and relative wealth grow exponentially since Feb 20, there’s a lot pf data out there. Huge numbers of businesses exploited the pandemic …. sound familiar? The Swiss, Liechtenstein and Panama docs, revealed vast numbers of tax defrauding Germans.

 

[Thunder Bolt]

I know, it’s a cultural thing and governments/banks made lending fraught.

The wealthiest 45% of Germans home own, the wealthiest 50% of French do.

Wealthy Germans and French have seen their wealth and relative wealth grow exponentially since Feb 20, there’s a lot pf data out there. Huge numbers of businesses exploited the pandemic …. sound familiar? The Swiss, Liechtenstein and Panama docs, revealed vast numbers of tax defrauding Germans.

They are people regardless of nationality. Many rich people get rich by defrauding others. It's called greed.

 

[Marshy]

Only charged when working full time. Weekend jobs they get too keep.

 

[1066familyman]

The majority of people in Germany rent rather than buy.

You're comparing Apples with Oranges there.

We used to have a regulated private rental sector. No guesses for who deregulated ours, but surprise surprise when Blair and his mates made no attempt to reverse that decision. That was 1989, and to date England still has a deregulated private rental sector.

It's criminal really.

 

[1066familyman]

On a day trip just now. Will endeavour to get my head round that at home .

Late to the party, I’ve only just cottoned onto the fact that the vast majority of wealth in the UK (and France, Germany, Switzerland) is owned by 20% of households. Generally not built on endeavour or passing professional exams, but the exponential rise in asset values 1995 to date. Homes, BTL’s, SIPP’s, ISA’s and other wealth under management. The 20% would include many round these parts.

Taxing toffs worth £10m or non-doms would barely touch the sides. Reluctantly they’d hand over a percent or so in additional taxes, but would make little difference to the 5.5m household in private renting for example. Income tax isn’t the answer for a variety of reasons. Has to be capital taxation.

Crikey, how can this be tackled?

Well the middle classes could stop the practice of taking pretend housekeeping money from their kids then giving it back again for starters.

Jokes aside, something really does need to be done. Perhaps increasing inheritance tax, closing tax loopholes, and then ring fencing that money to plough back into more social housing?

It's of course likely that if the figures were done on the above then even that would barely touch the sides either. However, any UK Government that is actually serious about 'levelling up' needs to realise that carrying on as we are is only ever going to continue to increase the alarming gap between the haves and have nots. That isn't healthy for any society.

 

[1066familyman]

A pertinent one. It’s lovely to read such positive posts from good parents but there is a negative side.

I'm sure you realise that parents that take housekeep from their kids and actually use it as housekeep aren't all bad parents. I know you didn't say that, but just in case anyone gets that implied message.

Again, it's all about opportunity.

 

[Thunder Bolt]

I'm sure you realise that parents that take housekeep from their kids and actually use it as housekeep aren't all bad parents. I know you didn't say that, but just in case anyone gets that implied message.

Again, it's all about opportunity.

There are parents and guardians who rob their kids and that is where I am coming from.

 

[AlbionBro]

Yes, our eldest pays and the youngest will start paying in September. Mother in law pays too.

My mother in law's pays me too, it's probably in a different currency of what you speak of.

 

[Machiavelli]

On a day trip just now. Will endeavour to get my head round that at home .

Late to the party, I’ve only just cottoned onto the fact that the vast majority of wealth in the UK (and France, Germany, Switzerland) is owned by 20% of households. Generally not built on endeavour or passing professional exams, but the exponential rise in asset values 1995 to date. Homes, BTL’s, SIPP’s, ISA’s and other wealth under management. The 20% would include many round these parts.

Taxing toffs worth £10m or non-doms would barely touch the sides. Reluctantly they’d hand over a percent or so in additional taxes, but would make little difference to the 5.5m household in private renting for example. Income tax isn’t the answer for a variety of reasons. Has to be capital taxation.

Crikey, how can this be tackled?

An entry-point into Raworth for you:

The planet’s economist: has Kate Raworth found a model for sustainable living? – podcast

Her hit book Doughnut Economics laid out a path to a greener, more equal society. But can she turn her ideas into meaningful change?

www.theguardian.com

 

[Mellotron]

They're 5 and 1.

So not yet, but soon.