How You Can Help Your Child Prepare For Bigger Costs

Any parent knows that you are never going to be entirely free from worry about how your kids are going to manage without you. Whether they are heading off to university this autumn or moving into their own home for the first time, or buying their first car, your life as a parent is a string of concerns about whether they are really ready for that next step of independence or if you are going to have to step in and offer some assistance. And while no good parent would begrudge having to help their child out every now and again, it certainly feels a lot better knowing that you have done as much as you can beforehand.

And it is certainly the case that there are more things to be worried about right now than there were a couple of years ago. The major fears of 2020 may be pretty firmly in our rear-view mirrors, but we are dealing with a whole host of different stress factors right now. The cost-of-living crisis has made all of us think about whether we are as financially stable as we thought we were. It is being reported that the months ahead are going to be particularly difficult for students, for example. when it comes to our kids, it is always going to be a fine line between being the bank of mum and dad and giving them the tools that they need to make their own way with confidence. Here are a few ways that you can help your kids prepare for bigger costs.

Help Them With A Budget

If your child is moving into their own home or otherwise moving away this year, then they are going to be dealing with a lot of bills that may be a lot steeper than they realised. The most important thing that you can teach them when it comes to making a budget is to not be scared of the process. Budgeting is essential, but it does not have to be something that they dread. If they are up for it, sit down with them and plan out a couple of months of typical expenses. These kinds of conversations can be a little awkward (how would you feel if you had to explain where all your money is going to your parents every month) but if you can work with hypotheticals, you can help them get into better habits.

Help Them With Their First Car

The first car is always such an exciting moment, and it signifies a moment of real freedom and independence for any young person. But as a parent, you will know that any first-time driver is going to need to get into some good habits that go beyond simply knowing how to drive. First things first, you will need to make sure that they have a proper emergency kit in their car. This may not help with cots necessarily, but it will help them to be safe and reduce the chance of injury on the road. Turning to costs, cars have a reputation of being something of a money sink for people who don’t really know what they are doing. Everyone has a horror story about taking their car to a mechanic and getting an eye-watering bill for their services. Anything that you can do to help your child have a better idea of what is going on with their car can make a big difference, both in terms of their confidence levels and in saving them money. You may have heard of an OBD code reader, which helps you to access your car’s data and read its error codes. It’s easy enough to use an OBD scanner, and you can find out more about how they work at Carly. Their OBD reader can help them to identify problems that they can fix themselves.

Help Them To Avoid Classic Mistakes

Now, every parent knows that to some extent, your kids need to learn by doing and that means making mistakes that they will know to avoid in future. But given that so many of the stakes are so high at the moment, it will do them a lot of good to have some idea of the major pitfalls that can be tough to come back from. For example, one of the most important lessons that anyone can learn is that you always need to read the fine print, particularly when it comes to matters of money. If your child is thinking of moving into a new place or investing a new car, for example, then there is a good

chance that they will need to apply for some kind of loan or sign up for a repayment scheme. This is an opportunity for you to help them to avoid some of the classic traps that come with these kinds of schemes, such as very high-interest rates or unreasonable repayment terms. Payday loans can be tricky to pay back, for example. Remind them that it is always important to make sure that they understand exactly what they are signing up for and that they know how to pay back any money that they owe.

Get Them Into Better Habits

One of the biggest causes for concern for everyone right now is how we are going to handle the rising energy costs, particularly when we head into winter. Even if you can’t help your child out by contributing to their energy bills financially, you can help them to get into better habits when it comes to their energy usage. This is particularly important if they are moving into their first home by themselves, as they will be taking on a lot of new responsibilities. For example, you can find out whether they have a meter that takes day and night readings and explain to them that it is cheaper to use energy-heavy appliances like the washer-dryer at night if they can. Make sure that they get into good habits such as switching off appliances and machines that they are not using at the wall and turning off lights in any room that they are not in. Everyone remembers their parents telling them that one.

Stay In Touch Where You Can

It is always a tricky moment when your child is taking these big steps into the world on their own. You never want them to feel like you are smothering them, hovering around, and questioning their every move. However, it is true that things are going to be tough in the months ahead and you do not want to be inaccessible if your child needs you. They know that this cost-of-living situation will be hitting you as parents hard too. One of the best ways that you can approach this quandary is to be upfront and honest with them about how you are feeling about it. Remember to tell them that you are there to help if them if they need it, whether it’s answering a question about a contract, helping them to research better deals for specific services, or helping them to get to the end of the month with a bit of extra cash to help them avoid getting into a loan they shouldn’t be agreeing to.