First job…what’s recommended

Bravepants

Dazed_and_C0nfused said:

JoeCrystal said:

Dazed_and_C0nfused said:

Robin9 said:

How much is she to give you for her Bed and Board ?

As above the earlier she saved for pension/property purchase the better but she needs to enjoy life / holiday etc

The op is referring to his own daughter, not a lodger!

It is a fair question! Contributing to the cost. I think you mean her rather than his. 🙂

Oops, yes, her daughter.

Just don't really get the whole your own children paying bed & board, rent, keep whatever people choose to call it.

The concept is as old as the hills though. Depending on the affluence of the family, children would be expected to contribute to their upkeep as they reach the age of work. I certainly did to the tune of £200 a month back in the 1990's. In some cases children that work away used to send money home to help out the family. I'm sure these days it's the other way around for many. But there are still parents living in poverty while the kids are away at work.  

An extreme example in fiction is Hamish MacBeth, the "lazy" police constable and main protagonist of M.C. Beaton's "Death of a.." detective series. Hamish is always on the scrounge because he sends most of his police salary back home to his parents and 5 (?) other siblings who are crofters in the Highlands and very poor. This fiction is based in reality. 

Grumpy_chap

allystar said:

Thank you all for the input!

we are going to encourage her to opt in and put the full 10%…added bonus is she should be able to do it via salary sacrifice.

Also going to get her to open a S&S Isa…she has a child one just now that she will get the content from when 18.

I’ve no intention of taking any payments for board…she’s a good kid, with a sensible head for money, so I know she won’t fritter it away!

I think, having £400+ a month going in to a pension at such a young age is a great start for her future!

I think the board & lodgings once a child starts at work is a common (obviously not universal) thing.

If she is sensible with her finances, that is great.

If she pushes back on the full pension contributions, you could consider phrasing the conversation around the notion that many parents do require their newly working children to pay board & lodgings but you are proud of her financial conduct thus far and, as such, you are willing to waive the need for board & lodgings based on the full pension contributions being made so she could consider that as a monthly gift from you to ensure she has a stronger future established.

Even if you never intend to charge her board & lodgings, it is probably a worthwhile conversation to have.  You might also think about setting some boundary as to when board & lodgings would be paid - either an age point or a certain salary point.  That can always be flexed if the threshold is reached.  Otherwise, she will be living at home with you even when she is in a senior job, earning twice what you ever dreamed of earning, and preventing your downsize to a bungalow.

gm0

The flowchart upthread is quite good. If you have that kind of mindset.

The big thing when making the save it don't see it decision early.  Is of course the power of compounding.  

Which is not intuitive to many - despite the arithmetic taught at school

Don't even get started on "long term averages" and "sequences" not being the same.  Again - basic arithmetic around % but far from intuitive.

The earlier you start - the better.  

The more consistently you just keep on going and ignore the world - mostly this is for the best also.

Some messages are taken on board better by living them than by lectures.

Good luck with this early promising development into adulting

NedS

Dazed_and_C0nfused said:

JoeCrystal said:

Dazed_and_C0nfused said:

Robin9 said:

How much is she to give you for her Bed and Board ?

As above the earlier she saved for pension/property purchase the better but she needs to enjoy life / holiday etc

The op is referring to his own daughter, not a lodger!

It is a fair question! Contributing to the cost. I think you mean her rather than his. 🙂

Oops, yes, her daughter.

Just don't really get the whole your own children paying bed & board, rent, keep whatever people choose to call it.

For us, it's not about the money, it's about teaching them or rather giving them the opportunity to learn financial responsibility. Teaching them they have bills that must be paid on time. That there are consequences. They are not born with this knowledge, they must learn it, and where better to learn it at home in a safe environment. Schools don't teach these life skills.

For the first 6 months, it was a real battle. Late payments, constant reminders and nagging. Now, a year on and the 'rent' just appears in my account when due, no arguments, no reminders. They have learnt that the rent is the first bill that gets paid every pay period, otherwise they don't have a roof over their head.

If they had left home and rented a flat or house when they first started work, the landlord probably would have kicked them out within a couple months. I now feel confident they are better equipped to deal with paying bills on time.

As I said, it's not about the money. All of the money I collect in 'rent' finds it's way back to them one way or another without them realising.

Smudgeismydog

Dazed_and_C0nfused said:

JoeCrystal said:

Dazed_and_C0nfused said:

Robin9 said:

How much is she to give you for her Bed and Board ?

As above the earlier she saved for pension/property purchase the better but she needs to enjoy life / holiday etc

The op is referring to his own daughter, not a lodger!

It is a fair question! Contributing to the cost. I think you mean her rather than his. 🙂

Oops, yes, her daughter.

Just don't really get the whole your own children paying bed & board, rent, keep whatever people choose to call it.

My son has just finished his first year of a 3 year degree apprenticeship. He requested to join the company pension scheme after his 3 month probation (as he is too young to be auto-enrolled), makes the maximum monthly payment into his LISA, and pays us a monthly contribution towards bills. 

I wrote down all the household bills (council tax, utilities etc), then divided by 4 as that’s how many of us there are in the household, and he pays his share. He also fully funds his car, including tax and insurance. I believe it teaches him that there are bills to pay out of your salary, the importance of long term savings, and he has a greater appreciation of things like turning lights off and putting washing out on the line and the cost of subscriptions eg Netflix, Spotify etc. 

We don’t charge rent, as he is putting money into his LISA, but I’m comfortable with taking this very transparent approach with him. He knows how we arrived at his monthly payment, and has gained an understanding of typical household costs. He set up a standing order, and he’s not missed a payment or quibbled about the amount.

kempiejon

allystar said:

Hi there, my daughter will start her first job in a month, with a salary of around £25k.

She will turn 18 around the same time…while Zi’m aware she’d need to opt in to the Company scheme (which matches up to 10%) I’m not sure d what the right advice is at that age.

Hubby says get her to put 5% in, employer matches…

My thought would be this and get her to take an ISA.

Any advice??

What does she think? Part of adulting is learning how to work it out for oneself. She's done a budget, knows the income and expected out expenses so can afford some to pension contributions to score max free money.
Why would hubby suggest only 5% and give up the bonus, what does he suggest as a better plan?

Mutton_Geoff

Put more in earlier then let compounding do it's work.

When saving for 10 years pays more than saving for 40. Save from 21 to 30, then stop. You will have a bigger pension than a saver who starts at 30 and stop at 70. The miracle of compound interest, Einstein's 'eighth wonder of the world’

https://www.telegraph.co.uk/finance/personalfinance/investing/10742396/When-saving-for-10-years-pays-more-than-saving-for-40.html

NedS

Mutton_Geoff said:

Put more in earlier then let compounding do it's work.

When saving for 10 years pays more than saving for 40. Save from 21 to 30, then stop. You will have a bigger pension than a saver who starts at 30 and stop at 70. The miracle of compound interest, Einstein's 'eighth wonder of the world’

https://www.telegraph.co.uk/finance/personalfinance/investing/10742396/When-saving-for-10-years-pays-more-than-saving-for-40.html

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