Mar 22, 2024
Texas-based ranchers Cody and Erika Archie made the decision to charge their daughter $200 a month in rent for still living at home after her high school graduation.
In the couple’s viral TikTok video, they detailed their decision. While some viewers left comments of support, not everyone agreed with their parenting approach.
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“We got a lot of backlash from people that said, ‘I would never charge my kids rent, they can stay forever for free,’” Erika remarked during a recent interview with Fox Business.
She explained that the rationale behind their decision is to teach their daughter a valuable life lesson.
“We wanted to make sure that she knew that nothing in life is free and that you're going to have to learn to save money and have to learn that you have to pay rent or pay, you know, a mortgage to live somewhere,” Erika elaborated.
No free rides around here
The couple revealed that their daughter actually moved out for a little while to “explore on her own,” but is now back at home with “other arrangements where she’s kind of working for her rent.”
Some viewers expressed strong disagreement, with one comment reading, “A definite no for me… I know it’s rare, but I will forever help my kids… no matter the age.”
Meanwhile, another popular comment proposed an alternative method for imparting this lesson: “Collect rent then give it back when they move out.”
Erika acknowledged that it’s not common for parents to charge their young adult kids rent in America, but she stands by her decision.
“It’s definitely something that we teach our kids, because we're not going to get free rides around here,” she said. “We're not going to teach them that they can just stay forever and live off Mom and Dad’s dime.”
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Living with parents
The Archies' decision garnered national headlines, which may have something to do with the broader trend of many young adults in America living with their parents as they navigate post-secondary education and entering the workforce.
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One Gen X mom took to TikTok to say that her young adult kids are facing harder financial struggles than she and her generation experienced. Letting her kids stay at home is her way to give them a leg up.
But others, like personal finance guru Suze Orman argued it's best to let youth figure it out for themselves.
According to a report from the Pew Research Center, 57% of Americans aged 18 to 24 currently live with a parent, which is up from 53% in 1994.
However, these young Americans aren't entirely living off Mom and Dad’s dime. The report revealed that 72% of young adults residing with their parents contribute financially to the household in some way.
For example, 65% reported paying for household expenses like groceries or utility bills, while 46% contribute towards rent or mortgage payments.
Achieving complete financial independence from parents in America typically requires reaching an older age these days. The report indicated that only 16% of adults aged 18-24 have achieved full independence from their parents' financial support. This percentage increases to 44% for individuals aged 25-29 and further to 67% for those in their early 30s.
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
