Australian Parents Find Win-Win in Charging Adult Kids Rent

Jackie Woods loves her two adult sons, but watching them spend freely on travel and dining out while she covered the mortgage started to feel unfair.

The Western Sydney mother recently made a change that's helping families across Australia. She started charging her 23-year-old son $200 weekly in board after he landed his first full-time job. "I had to think about an amount that would feel fair to me," she says.

Her sons aren't alone in staying home longer. Rising living costs are keeping more young Australians under their parents' roofs well into their twenties. But experts say this living arrangement doesn't have to create tension or enable dependence.

Parenting expert Dr. Justin Coulson calls these young people "adultescents" and believes charging board helps them find real independence. "In my view, there is more upside to charging rent than there is to not," he says. He charges his own six adult children 10 percent of whatever they earn each month.

The approach works because it scales with income. A quiet work week means a smaller contribution. A busy month means paying more. One of Coulson's children once slapped $4.60 on the counter with obvious attitude, but the lesson stuck.

Financial adviser Kate McCallum recommends parents turn board payments into teaching moments. She suggests sitting down with adult children and walking through the actual household budget together. Calculate utilities, groceries, internet, and mortgage costs, then divide by the number of adults in the home.

"Financial literacy research shows that just having an adult child pay money for board or rent doesn't improve their financial literacy," McCallum explains. "What does is actually walking them through the household budget and doing the maths around it."

For students or part-time workers, experts recommend charging a percentage of income or basing rates on local market rent, then discounting it significantly. The goal isn't punishment but preparation.

The Bright Side

This arrangement creates unexpected wins for everyone involved. Parents get financial relief and peace of mind knowing they're teaching responsibility. Young adults gain financial literacy skills while still having support, essentially learning independence with training wheels.

Some parents who don't need the money are getting creative. They're charging board but secretly saving it to give back as a house deposit or emergency fund when their children eventually move out.

McCallum suggests putting agreements in writing and having children sign them. "Behavioral finance research shows us that if you actually have to sign your name to something, you're more likely to abide by it," she says.

Coulson emphasizes setting clear expectations early. "I've said to my kids that my obligation to them financially ends when they turn 18 and finish high school," he explains. "It doesn't mean I don't love you. But you will now have to make some decisions about how you'll move forward."

For families choosing not to charge money, experts recommend setting ground rules around household contributions like cooking, cleaning, and laundry.

Teaching financial responsibility while maintaining family harmony turns out to be easier than many parents think.