Watching your kids grow up and become independent is pretty exciting stuff. But let's face it, getting them ready to handle their finances as adults? That's a whole different ball game. With the cost of living always on the rise, it's becoming common for kids to stick around at home longer, or even boomerang back home after tasting a bit of the real world. And let's not kid ourselves, this financial juggle can hit every household differently.

So, if you're a parent or caregiver guiding your adult kid through the financial jungle, here are some tips to consider. Just like in their younger days, you can offer them the love and support they need to stand strong on their own two financial feet.

Now, let's talk about the good and the not-so-good when younger adults move back home:

The Upside:

• Everyone chips in with household chores and whatnot, making life a bit easier for everyone.
• Living together can stave off loneliness and make taking care of family easier.
• Your kids can learn the ropes of independence bit by bit, all while having the safety net of home.
• Pooling resources can ease the financial squeeze for everyone.

The Downsides:

• Supporting adult kids can strain your own finances and put a dent in your retirement savings.
• More people means more expenses, from utility bills to groceries.

In Canada, about a third of young adults are bunking up with mom and dad, especially in pricey cities like Vancouver.

Now, let's talk survival tactics when you've got adult kids under your roof:

• Lay down some ground rules. Everyone pitches in, and it's important to have an open chat about who does what.
• Have some grown-up talks about money. Show them the household budget and figure out how they can chip in.
• Think about asking them to pony up some rent. Even if you don't need the cash, sock it away for them for when they eventually move out.
• Transition from provider to coach. Guide them instead of just handing over cash.
• Set a loose timeline. It's good for both you and them to have a plan in place for when they'll fly the coop.
• Listen to their ideas. Encourage them to come up with a plan for their independence, and then work through it together.

Now, about those multigenerational households. They're becoming more common, and there's a lot to gain from having everyone under one roof. Grandparents get company, parents get extra hands with the kids, and the kids get to bond with their elders.

Bottom line? Living with family has its perks and pitfalls. If you're guiding your adult child, help them build their money skills, share the load at home, and be their coach, not just their piggy bank. And remember, it's all about finding that balance and listening to each other along the way.

Source: https://www.getsmarteraboutmoney.ca/learning-path/life-events/how-to-help-your-adult-children-build-financial-independence/