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Charging rent for 21 year old
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Nothing wrong with learning how to have to budget for living expenses.
Personally I think age 16 is a world away from age 21 and I would be inclined to behave quite differently in this situation. My inclination (assuming that you can afford it) would be not to charge her housekeeping whilst she is still in school/college - at least until she is beyond the age where you are receiving Child Benefit for her. Given her earnings, you may feel it is time to cut her allowance, but I'd handle this carefully to make sure she doesn't feel too hard done-by and also that she doesn't take on more work than she can cope with.
Out of interest, how many hours will she be working? My preference would be to watch her and help her as she dips her toe in the water with paid employment. Whilst in college she may well at risk of overextending herself by doing too may paid hours and may later tire of her part-time job - but once her allowance is gone or once she has started paying you keep, she may find it difficult to make the best decision about whether to keep it up. You might want to make an arrangement with her that your allowance/some of her earnings go into a savings account that she could use to enable her to give up work around exam times.
I don't think the old idea of 1/3 for rent, 1/3 to be saved and 1/3 for spending is a bad start. And if you happen to have enough to get by without using the 1/3 from your child, then save it for him/her later on - wedding expenses, house deposit or whatever you want to help with. But don't let them get into the habit of buying 'stuff' - it can be a difficult one to break. As can the one that says 'I can't afford the rent this week' and Mum lets them off altogether. The council and mortgage lenders aren't so lenient. Children need to learn that bills all have to be paid in the end!
I have nothing to show for my younger years, basically spending on rubbish stuff etc, so i won't make that mistake with them!
As for the £50 we pay for everything apart from her mobile phone bill and her travel to work costs. She doesn't know it but we are saving £25 out of the 50 every week to give her a large financial cushion when she dips her toe in the water again.
Unfortunately she has remembered how wonderful it is to have meals on the table when she comes home from work and ironed clothes in her wardrobe.... I don't see her moving out in a hurry!
It does depend a bit on how independant he is. If he also takes his turn with food shops, helps out around the house and pays for his own transport etc, then a lower 'rent' would be more appropriate, if not then a 'housekeeping' element should be included.
If you're a bit worried about how good he is with money, how about gently exposing him to the realities. For example, arrange for him to pay a proportion of your council tax directly, same with mortgage and bills, take turns shopping, etc. Or you could at least 'invoice' him, showing how his rent is broken down into bills, food, mortgage, etc. I know that sounds a bit of an odd thing to do as a parent, but you will be helping him appreciate money.
If it's any comfort, a friend of mine and her son used to have some quite bitter rows about how much he paid to live at home. Within two weeks of him moving in with some friends he turned up with a big bunch of flowers to say soprry for being such an ungrateful wretch!
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I didn't know how much to ask for her contribution towards the Council Tax, hence my figure of £40 out of the £152.
I am on my own, unable to work because of long term illness, but I do receive maintenance from my ex.
She doesn't pay towards the phone bill but that's because she only makes the odd local call, most of her phone calls are done on her mobile.
Many thanks.