As a parent, it’s always a complicated mix of emotions when your child is getting ready to move out for the first time. You are going to want to give them the best possible chance of success, but you don’t want to overstep. Many young people moved back in with their parents during the pandemic. Now, the trend has reversed and competition for homes is fierce.
Start Them Saving Early
Create a savings account for your child before they need it. Deposit a set amount regularly until it is time for them to take over responsibility for the account. Explain the importance of saving for a goal and help them to create a routine for saving. Talk to your bank about the best account to help them apply for a mortgage.
Help Them Find The Right Home Loan
Research the best home loan options for a first-time home buyer. Compare interest rates and repayment timetables to ensure they won’t take on more than they can afford. Look at the deposit fees in your area and look for saving tips to avoid taking on too much interest. Read home loan offers carefully and go through the fine print. Take advantage of government assistance for home buyers who need help with their deposit.
Get Them Into Good Spending Habits
Talk to your child about the importance of managing debt. Explain how their credit score works and that any loan or credit payment will appear on their record. Work on a budget plan for their first months in their new home. Factor in recurring bills for gas, electricity and water. Show them the importance of planning meals in advance to reduce household fees. Demonstrate the savings you can make from shopping cheaper or store-own brands.
Stress The Importance Of Safety
Look for home insurance policies for your child’s first home. Ensure that the policy covers all their possessions at a monthly price they can afford. Check the fine print for loopholes. Talk to your child about the importance of home security. Remind them to change the locks after they move in. Consider adding security cameras and motion sensory lighting. Encourage them to introduce themselves to their neighbors.
Keep Checking In
Talk to your child about their feelings surrounding moving out. Be honest about how you are feeling about it. Encourage an open dialogue and ask them how present they want you to be in the weeks following the move. Respect their boundaries and ask permission before coming over. Avoid dropping off meals or doing their laundry. Give them space to be independent but remind them that you are there if they need you. Remember that young people have struggled with their mental health in the last year so don’t cut off contact completely.