Your child most likely loves your house. Whether it’s been the family home ever since they were born, or a recent buy, those four walls and the memories made within them mean the absolute world to a young mind which is still learning about life, money and all the confusing things inbetween. It’s up to us to take the opportunity, whilst our children are growing, to help teach them about the boring ‘behind the scenes’ elements to owning all these luxuries we take for granted. If they want the perfect home when they’re older and have their own family, you’ve got to teach them how that works.
Financing a home may not be something your child understands right now, but as they get older, there are some steps you can teach in order to help instill financial independence and understanding in your children as they become young adults and get closer to having to make these decisions for themselves. The key is to ensure that their spending, even at expensive times of year such as the holidays, never outweighs their saving.
Talk about debt early on.
Before your child can consider buying a home, they’ll have to take a look at their finances. Young people in the current economic climate feel discouraged from buying a home, because they’re overwhelmed by all the debts and other costs of life which they feel will take too large a chunk out of their income for them to be able to afford anything else.
Of course, this isn’t true. If debt and other costs are approached early on in a young adult’s life, they’ll find that affording the bigger things and achieving that stability they seek becomes much easier. Teach your child that disposable income can be disposed on something really valuable today, so that they can have all the luxuries they want tomorrow.
If your child loves the idea of owning a home now, then help them ensure that dream becomes a reality when they’re older, rather than dwindling away when they realise they aren’t financially prepared for it and it may be a long time before they are.
Mortgages aren’t a scary thing if you have a stable job.
You might be wondering about the future for your children, considering the dire situation facing many younger people struggling to break into their industry and career of choice. However, it doesn’t have to be so bleak. Help your child prepare by teaching them about the costs of owning a home and the savings which will need to be made. Once they understand the costs, they might feel motivated to pursue a specific career or work harder at high school, or college, in the hopes of attaining a stable career and being able to cope with the financial element of having the perfect home.
Houses can be expensive on the whole, but I’m sure you realise there are manageable ways to afford the right home with the right job. With a Homestead Financial Mortgage, for example, your child, as young adult purchasing a home, could be set for life with a manageable, fair way of paying for their home gradually.
Remember, teaching our children about finance is our job. If you want to ensure they’re prepared for the future and owning a home, pass on all the knowledge you can, along with the tips we’ve given here.
