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How much board should you charge your child in 2024?

When it comes to money and our loved ones, things can get a little tricky. But if you’ve reached the point where your child is old enough to start paying you for bed and board, how much should you actually charge? Let’s take a look at some ballpark figures.

How much board should you charge your child?


How much should you charge for board?

There are so many factors to consider when looking at charging your kids rent that there’s no one size fits all answer to this question. However, it’s generally acceptable to charge your child anywhere between £100 and £400 per month for board.

Read on to find why this amount may vary.

What are your reasons for charging board?

Before you come to an amount you want to charge, you need to think about what your reasons are for doing it. For most people, there are two main reasons why you might want to charge your child board.

  1. You want to prepare them for life in the real world and teach them some financial responsibility.
  2. The cost of having them in the home is too much and you need help towards the bills.

So, how much you want in exchange for board will depend a lot on your reasoning.

And there’s another big factor that will affect how much you charge – how much your child earns.

Teaching your child financial responsibility

Charging your child board is a great way to educate them in budgeting. But it can be quite a shock for them.

When you add up all the household bills you need to pay when having your own home, the average cost is £1,753.91 per month for renters or £1,463.91 for mortgage payers.

And when you think that the average wage after tax is around £1,800, that doesn’t leave them much room for movement – although this can be softened quite a bit if they’re going to live with a partner or friend.

But a good rule of thumb to teach your child about budgeting is to charge between 10 and 20 per cent of their wages. For most young adults living at home and working, this will probably only cost them between £100 and £400 per month.

The money they have left over can be put towards their own bills, such as a phone or car and the rest can go into savings. Of course, it would be wrong not to expect them to spend some of their earnings on entertainment and socialising, but it may be best to keep a closer eye on this.

If you do find that your child seems to be spending a lot and saving very little, then you could increase the amount of board you charge. That extra money could be put in a separate account and given back to them when they move out.

Or you could spend it on a holiday. Whatever you prefer.

Help towards bills

But charging board is not always about helping your child to budget. Once they’re older and out of education, you may lose certain income like child benefits or tax credits. And as much as we love them, we can’t always keep supporting them.

If you do need help with the bills, you may want to calculate things a little differently.

Again, you could go with a simple percentage of their income. It’s simple to work out and you’ll know exactly how much you’ll receive each month.

Or, you could opt to charge them a certain percentage of your bills. For example, if there are three of you in the home, you charge them a third of your water and grocery bill. You could stretch this to other bills like broadband, TV and energy. But remember, some of these bills (like a TV subscription) will stay the same whether there are two of you or six.

By charging your child this way, they may be tempted to limit their usage and think more about their actions. They may be less inclined to stand in a shower for 30 minutes if they know it’s going to cost them more.

Other things you need to consider

When your child moves out, they’re going to need quite a bit of money behind them. This will go towards a deposit for either a mortgage or rent and will help them buy items for around the house.

If you charge them too much in the way of board, then it may mean that they will struggle to put a decent amount of their wages away into savings… meaning they could be stuck with you even longer.

Tell them about the Lifetime ISA

It’s also worth letting your child know about the Lifetime ISA (LISA). This savings account is available to anybody aged between 18 and 40 and the government gives them a 25% boost of up to £1,000 per year. So, put in £4,000 and it soon becomes worth £5,000.

The money from a LISA can be withdrawn without a penalty at the age of 60 or when they buy their first home. Find out more about a LISA and the current providers.

Remember, no two families are the same

All of the above is just meant as a guideline and is not written in stone.

We’re all different and what’s good for some people may not necessarily be good for others. It would certainly be worth sitting down with your child and going through the figures. This way, you may be able to reach an agreement that suits both of you.

But remember… it’s your house, your rules.

David

Thursday 8th of August 2024

My daughter 24 year old is about to start her career with a law firm as a trainee solicitor. She will be earning roughly £2200 a month after tax. How much board would be fair?

Pete Chatfield

Saturday 10th of August 2024

Hi David. It's very difficult to give an exact answer as it depends on how much you think your daughter costs to keep at home and how much your mortgage or rent is. However, if I was in your position, I would charge around £300 per month - giving her a good chance to build up a decent deposit for her own place. And if I thought she was spending too much and not saving, I would increase it and put money away on her behalf.

Wendy Hartle

Wednesday 24th of May 2023

How do you work out the money if the boyfriend moves in too. my daughter pays £100 per month voluntary and she is in collage and works 3 night's a week. Her boyfriend works full time. Many thanks

Money Saver Pete

Wednesday 24th of May 2023

Hi Wendy. A tough question as it partly depends on how much he earns and whether you pay for his food... and how much hassle he causes you. If it was me, I think that £200 would be fair when you consider that if he rented a room, it would probably cost him £600. If he isn't paying for food, I would up it to at least £300.