In recent years, there has been an increase worldwide, including in Israel, in the number of adult offspring living with their parents, compared to 30-40 years ago. This trend has accelerated in recent years due to the coronavirus. They will always remain our children, but they are also mature people. Parents can help them make the transition from childhood to adulthood in part by finding an optimal way to participate in household expenses (assuming they have income).
Examples of such types of expenses are part of the expenses of family car insurance (assuming they use it), or participation in housing expenses (in a reasonable amount).
You can save the amount for them and pay it back when the time comes, or give them ownership of the savings means we used (such as securities, provident fund, deposit, etc.), or give them cash for future rent payments.
Many of you are probably uncomfortable with these ideas, but think again, because this is not a punitive measure—it is a pattern of giving love. Many young people thirst for guidance and insight to become sophisticated in managing their finances. We know that money is often responsible for family tensions – but out of a desire to protect children, or out of a lack of knowledge of how to approach it, money becomes a topic that is not talked about in families.
Sometimes, the people we love the most can't talk to us about money. Sometimes parents do a disservice to their children when they only give them money, rather than asking them to go out to work, for example. Those who learn the value of making money from an early age will be in the best shape when they become independent. Making money on your own is something that fills a person in general, and children in particular, with pride and belief in their abilities.
There are other issues in the context of financial literacy that are important to begin understanding and applying at an early age. These topics include defining financial goals, creating a budget and managing it on an ongoing basis, imparting savings habits, proper debt management, studying and implementing issues related to investments in general and the capital markets in particular, possible sources of income, and more. So the most important thing is not to hesitate - to start and succeed.
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