Young people staying at home longer, chipping in with household costs and chores
Imogen Szegedi (right) with her father John, mother Jo and brother Liam. (Supplied: Imogen Szegedi)
Like many Australians, Imogen Szegedi and her parents are navigating tricky discussions about money and the cost of living.
Since graduating from high school last year, the 18-year-old has started working 30 hours a week and juggles that commitment with sport and a busy social life.
As she earns more money, one topic that keeps coming up is whether she should pay to stay in the family home in South Australia's Mount Barker.
"I have a few friends that I've spoken to and they pay board … like $50 a week," Imogen says.
Her dad John says the discussion is ongoing, but they have reached a compromise.
"The deal is that if she's not paying board she needs to help out around the home," he says.
"That might be taking her brother to school … and obviously she pays for her own running of the car costs and things like that.
"If she relaxes on the house duties we might impose that board payment, but we'll see how we go."
Imogen Szegedi (right) and her dad, John, have come to an arrangement where she helps at home instead of paying board. (Supplied: Imogen Szegedi)
More young people living at home
The number of young people living with their parents is steadily increasing across Australia.
Fifty-four per cent of men and 47 per cent of women aged 18 to 29 still live under the same roof as their folks, according to the latest Household, Income and Labour Dynamics in Australia (HILDA) report.
The cost of living crisis, lack of affordable housing and the fact that young people are generally spending longer in higher education institutions are among the reasons why.
Such arrangements come at a financial cost to families and in some cases parents might want or need their kids to contribute to household spending.
Loading...Debbie and Roger's children paid board from when they were about 16 years old until they moved out of home.
The couple believes teaching young people about financial responsibility and budgeting should start at home.
"We pay 130 bucks for internet and the kids think it's free," Roger says.
"I think as they get older and they're working part-time or full-time, they've got to contribute something to that and to the household budget."
Roger and Debbie's children paid for board when they lived at home as teenagers. (ABC News: Michelle Wakim)
Open and honest conversations
Financial Basics Foundation chief executive Katrina Samios says if parents want to raise the idea of their children paying board or for other expenses it is important to have open and honest conversations.
"Some parents might feel uncomfortable, but occasionally [you could] pull out the bills and show young people how much things cost and how much you have to work to be able to cover the costs," she says.
"They'll be blown away by how expensive things are, and it gives them an appreciation of that."
Katrina Samios suggests parents show their kids the bills to give them an idea of what it costs to run a household. (ABC News: Sharon Gordon)
Ms Samios says encouraging a child to "contribute towards some of their own expenses" can be a positive thing.
"Whether it's board, or it might be their mobile phone or entertainment or clothing, [that] is a valuable lesson," she says.
"[But] that needs to be appropriate and proportionate to their income and it certainly shouldn't have any financial stress for that young person or build anxiety around money."
Petra, 14, believes it would be fair to ask kids to contribute to household costs in some situations.
"Some people just don't have a good financial situation and rent is really expensive at the moment," she says.
"If your child is viable and earning money, then it's fair to ask them to chip in a bit."
Financial literacy rates
Recent studies have found that financial literacy rates across the country are declining, particularly among people under the age of 35.
A 2023 survey by Australian financial platform Canstar found only 30 per cent of Gen Z and 47 per cent of Millennials could correctly answer the majority of its financial literacy questions.
More young people are staying home with their parents for longer. (ABC News: Keana Naughton)
Ms Samios says talking about money at home could improve those statistics.
"The research does absolutely show that if you have conversations at home, if they start early … young people are more financially literate," she says.
"Being financially literate helps you understand the concepts of budgeting and saving.
"It helps you avoid debt, it helps you avoid getting caught up in scams and it helps you set up yourself for a more secure financial future."
Ms Samios says it is even more important that people learn those skills in the tough financial times people are facing today.
"Because it means that we are resilient and that we have those buffers in place so that we're not impacted and thrown off balance completely when something shifts," she says.
"[You're] in a good position to be able to weather the storm."
Back in the Szegedi household, Imogen says taking on more financial responsibilities has helped prepare her for living out of home.
"I've definitely learned that it takes, you know, many hands to run a household," she says.
"And there are many ways to contribute, whether it's financially or with jobs or with cooking and all those sorts of things.
"I don't want to pay [board] but I'm contributing by doing jobs."