As a parent, there is an endless list of things you have to teach your kids. If you think that your days of teaching them things are over once they grow up and move out, you’re mistaken because they will still need your help with big life events like buying a home.
Buying a house is a long and sometimes very difficult process and it’s likely that your kids will have some trouble along the way. But you can make things easier for your kids if you start teaching them about this stuff now, so they’re prepared when they get older. Here are the 3 lessons parents should teach their kids about buying a house.
How To Save Money
Before they can start looking at properties, they’re going to need to save the down payment. So, the first thing you should teach them is how to budget properly and how to save up money. This is a great general life skill to have, and it’s one that you can start teaching when they are very young. Show them how you budget your money and give them a small allowance to spend. By learning simple budgeting techniques when they are young, they prepare themselves to meet big savings goals, like saving a house deposit.
What To Look For In A House
This is one that is often overlooked but most people don’t have a clue what to look for when they start house hunting. You need to give your children some advice on how to choose a home and what warning signs to watch out for. If they’ve never bought a house before, they won’t know how to spot the signs of maintenance issues and they might forget to check what the local amenities are like before signing the paperwork.
How Mortgages Work
When you’ve already been through the process a few times, it’s easy to forget that people might not know how mortgages work or what the process is. It takes a while before you can actually close on the loan and there are a lot of hoops to jump through. As a first-time-buyer, it can be incredibly daunting, so you should spend some time explaining how mortgages work to your children. You can even talk to them about how much your mortgage costs each month and how long you will be paying it for so they have a better sense of your financial life.
When teaching them about mortgages, it’s important to discuss the responsibilities that come with credit. If you talk to kids about credit and help them understand that, although they will borrow money to buy a house or a car, that’s not the same as running up huge credit card bills. Talk to them about the consequence of not paying debts and how quickly our financial situation can turn around. When they understand the responsibilities of debt, they will be less likely to experience problems in the future.
Your adult children will be out of their depth when they buy their first house. But, if they learn these 3 lessons parents should teach their kids about buying a house, they will be fine.