Feb 16, 2024
Paying rent to your parents isn’t unusual. However, Matthew from Alberta, Canada, is in the unusual position of having to pay rent while he’s just 16 years old living at home.
He told the hosts of “The Ramsey Show” that his parents insist on taking 15% of his income as a “rent or tax or whatever you want to call it.” Having to part with a significant portion of his income at such a young age doesn’t sit right with him. Matthew said he also pays for most of his own expenses, including a lot of his food.
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“I'd like to know whether or not you think that’s fair, or I’m just overreacting and thinking that it isn’t?” he asked the hosts in the clip posted to YouTube.
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A taxing situation
Like any other 16-year-old, Matthew is in school studying full-time. However, he’s also working “full-time” on what he calls a “part-time schedule.” That means working 12 to 13 hours a day on three to four days of the week.
The money he earns goes toward his own expenses: his car, fuel, insurance, phone bills and a lot of his food. However, his parents have also demanded 15% of his income every month. Both parents agreed to this arrangement but have different reasons for it.
Matthew’s mom sees this as a life lesson. “According to her, real life — there’s rent, there’s expenses and whatnot, and this is real life, so this is what we’re teaching you,” he said.
Co-host John Delony took issue with this. “I’m sick of parents saying, ‘I’m going to hit you now because the world is going to hit you later,’ as though that’s going to help you later,” he said.
As for Matthew’s dad, he believes he shouldn’t “be the only person to provide for the family when he has working children,” Matthew said.
“He made you!” said Delony, incredulous at the suggestion that a minor should have to pay rent. “You’re here because of him. You didn’t ask to be here. That’s his job!”
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The legality of this move is unclear. Technically, anyone under the age of 18 is considered a minor in Alberta. Under the Children Act 1989, providing a home is also considered a “parental responsibility.”
Legality isn’t the only issue. Delony expressed concern about the impact of this arrangement on Matthew’s relationship with his parents.
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Financial abuse
Co-host George Kamel viewed Matthew’s situation as “financial abuse” and the result of “bad parenting,” assuming there are no other underlying circumstances to explain their behavior. The University of Syracuse describes parental financial abuse as “a complex issue where the parent uses money as a weapon to take advantage of a minor.”
“I hope this doesn't ruin your relationship long-term, man, because y'all gonna need each other down the road,” said Delony. “Here's why this breaks my heart ... the moment you turn 18, you're probably gone and they will have lost the relationship and influence with their son, and I hope that it's not too late for them.”
Money issues often spark discontent and impact relationships within families. One in four parents with children younger than 18 reported arguing with their kids about money in the last month, according to a 2022 survey conducted by LendingTree.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
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