How to teach your kids about life: Don’t help them buy a house

By Rob Carrick

You may know the name Sean Cooper – he’s the guy who in just three years, by age 30. Now, he’s a personal finance blogger with some strong views on how his fellow millennials are affording their own homes. He says a lot of young adults from their parents, and that this has to stop.

Cooper appeals directly to parents to show their kids some and not provide help with down payments. Still, he does relent a bit at one point and says it may be okay to top up down payments to 20 per cent to help buyers avoid the cost of mortgage insurance. Here’s another note to parents about helping their children financially: “The you are offering your adult children is toxic.”

Here’s yet on parental help in home buying: Can your kids actually afford to own a house? Helping someone buy a house he or she cannot afford to carry while saving for retirement and other things is irresponsible.

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Help or handout? Parents giving kids an assist with home buying
(The Globe and Mail)

Courtesy: The Globe And Mail

10 Replies to “How to teach your kids about life: Don’t help them buy a house”

  1. what a bizarre advice, what’s the point of having some money ahead if not to help your children (plan to take it in your grave maybe ? Or leave it to them when they’ll be 60 ?)

  2. “Don’t help them buy a house” And just what lesson in life does this teach them? Maybe that there are really out of touch financial advisers?

  3. appa-Never ceases to amaze me how these social media celebs are now unquestioned authorities on all matters personal and financial. The support by parents is contingent on many things. First, are the parents themselves financially secure. If they are, are the children living up to their obligations and conducting themselves with maturity, drive and ambition. Did they acquire employable practical education and are they engaged in their occupation. Or are they clubbing and smoking pot.
    Are they homeless due to no fault of theirs, just a bad patch.

    Everything in social media is at the most superficial level –one line advice that is held up as universal truth

  4. Wow, this is a hell of a time to pick this as a lesson. “Hey, let’s deficit spend for decades, and let speculative investing and predatory loans run so rampant that they nearly wreck the economy worldwide… but those kids today, they don’t appreciate money, so give them nothing.”

  5. Seems to me that if you are teaching your kids about life when they are in a position to want to buy a house you are a little late in providing that education.

    Those lessons should have been taught before they left your home.

    I have no problem helping my kids buy a house if they generally follow good financial practices. That help could be in the form of a contribution towards the down payment and/or a partial “mortgage” to build inter-generatio­nal wealth. But ultimately they are still responsible for coming up with the base down payment of 25% and ability to manage the payments.

  6. Well to perfectly honest, I’d rather throw the money away on a family member than have them pay interest to a bank…no question on that.

    Okay son, I’m going to teach you lesson and have you bare the full brunt of of a mortgage for 10-20 years and pay all the interest to the bank…that’ll teach ya!

  7. Go-Parents are “taking money” out of their homes to help their offspring buy houses that cost more than ten times their gross annual pay. Multiple families buying a single lot is being touted as a “solution” to home ownership in the face of high real estate prices.

    This proliferation of daisy-chained debt should give people looking at systemic risk some pause.

  8. DB-If helping your married kids, make sure you register a mortgage and have them make payments just like a real mortgage, or their exes will have the opportunity to make off with half of your gift.

  9. If you are fortunate enough to have the means, buy your kid as much house as you can afford- whether it’s a 5% downpayment or a mortgage free property. Just make sure that he or she can afford the taxes and maintenance costs on their own. That will quickly teach them responsibility.­

    A home is probably the best gift you can give a child, after an education.

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