Many parents mistakenly expect that they will only be financially responsible for their child for the first eighteen years of their life. However, most parents whose children are now adults know that this is definitely not the case.
With more and more competition for jobs at all levels – including roles that require a university or college qualification – and with the average graduate income remaining low while the cost of living rises every year, more and more young adults are relying on parents to stay afloat.
Whether it’s help with the rent, the occasional grocery bill bailout or even returning home to live full time, our kids still need our help.
This puts many of us in a precarious position financially.
In this article, we’ll explore ways in which parents of a struggling graduate can save money and get a little respite from the monetary pressures they’re likely to experience.
Look into Loan Forgiveness
If you took out a Parent PLUS loan to help your child pay for college, there may be loan forgiveness programs available that will help take the pressure off the financial burden of tuition.
Large education bills can be a heavy burden on parents and students, however, if your child has graduated, is enrolled half-time or is within six months of graduation, there may be ways of applying for loan forgiveness or refinancing to make repayments more manageable.
This can be a great option for parents who are finding it very difficult to meet repayments.
Research Available Discounts
If your graduate child still has a student bank account or valid ID card, they may still receive discounts on certain products and services.
Look into what these are and encourage them to use these discounts wherever possible.
The world of savings and finance can be complicated for a young person who is new to its complexities.
We highly recommend that you take time to explain the importance of a savings account to your child and help them to open one. As they build more of a financial cushion, the pressure on your own savings will lessen – and they’ll definitely thank you for the advice.
Make Rent and Bills Arrangements
How you manage the rent situation with an adult child living at home is completely up to you and will depend on your relationship with them. Some parents offer a grace period where no rent is to be paid after their child moves back in.
This will give them the opportunity to look for a job and find accommodation without draining their bank account, along with the subtle suggestion of a deadline.
Some parents charge their kids enough money to cover their upkeep right from the start, including food bills and power usage, while others only ask for payment for luxuries, such as borrowing the car or asking for luxury groceries. Talk to your child about the best way to handle the matter.
They’ll appreciate being treated as an adult and having the opportunity to provide their own input and this will result in fewer arguments later down the line.