If an adult child plans to live at home, both the parents and the child should agree on the outcome and timeline in a written agreement – much like tenants would sign a rental agreement.NATEE MEEPIAN/iStockPhoto / Getty Images
Young adults today face economic hurdles that make it difficult to live on their own, including housing affordability, a difficult job market, and surging costs for basic goods such as groceries and gas. For many, the best option is to live at home with their parents.
This arrangement has become common. According to an August, 2025, Statistics Canada report, based on the most recently published census data, 57 per cent of those aged 20 to 24 lived with their parents in 2021.
It’s a tricky dynamic though, and establishing clear financial expectations when an adult child moves home – or as soon as it becomes clear a child over the age of 18 has no plans to move out – around rent contributions, household expenses and grocery bills helps avoid misunderstandings. And ideally, the adult child becomes financially independent while living at home.
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“You want to provide them a safety net, but not a safety hammock,” said Amy Dietz-Graham, a senior wealth adviser with National Bank Financial. “The goal is really to prepare them for responsibilities they’re going to have when they live on their own.”
Here are four things to consider if your adult child is living under the same roof:
Get them off the family phone plan
First, if your child isn’t already paying for personal expenses – including their cellphone bill, gas, car insurance and similar expenses – it’s time to make that transition and build financial literacy.
“It’s very common to meet kids in their mid-20s whose parents still won’t allow them to have a credit card,” Ms. Dietz-Graham said. “We’re almost delaying adulthood. If they haven’t learned these skills, it’s a really big challenge for both the parents and the kids.”
A parent’s guide to (happily) living with adult children
Ms. Dietz-Graham tells clients their children should book an appointment with a financial adviser as soon as they turn 18. They can discuss budgeting, saving, credit ratings and investing, which can boost the young adult’s confidence. “Parents, don’t book the meeting,” Ms. Dietz-Graham says. “Your 18-year-olds have to call, book the meeting, learn how to deal with a professional.”
After that, parents can introduce other financial obligations – such as shared household expenses – that adult kids need to chip in for on the path to becoming financially independent.
Set a deadline, in writing
According to Joel Fox, co-founder of Ownright, a real estate closing company, parents should clearly define the timeline the adult child will be living at home – whether that’s one year, or until they reach a certain financial goal, such as saving for a down payment. If an adult child plans to live at home, both parties should agree on the outcome and timeline in a written agreement – much like tenants would sign a rental agreement.
Kelly Ho, partner and certified financial planner at DLD Financial Group, says informal verbal agreements tend to breed resentment. Before drafting a written document, both parties should have a family meeting to discuss and negotiate expectations – both financial and otherwise.
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Non-financial considerations (i.e. garbage duties, grocery bills, overnight guests, household chores) should also be discussed and included. Importantly, Mr. Fox says the agreement doesn’t have to be formal or lawyer-led. It can just be a shared note with general expectations to prevent resentment and drama.
Charge them – even if you give it back
Stacy Yanchuk Oleksy, chief executive officer of Money Mentors, an Alberta-based credit counselling agency, strongly suggests parents charge rent and be clear about expectations around household contributions. “By setting those boundaries and staying really firm with them, everybody is happier. Clarity is kindness in this situation,” she said.
Ms. Dietz-Graham says some clients don’t want to burden their adult kids by “taking money” from them. “But a bit of burden is usually a helpful thing,” she said. Recurring bills are a feature of adult life, so having financial responsibilities clearly defined, and even automated, can help boost confidence and build resilience while the adult child works towards their financial goals.
For example, parents can charge their adult children $500 on the first of each month to cover household expenses. Parents who can afford to can put the money in a savings account and give it back to them the day they move out. “It’s not about taking money from them,” Ms. Dietz-Graham said. “It’s about setting a good savings habit.”
Make payment plans fluid, not flat
Bills can fluctuate, so Mr. Fox suggests parents charge adult kids a percentage of various household expenses rather than a flat rate called “rent.”
Sometimes, Mr. Fox says new homeowners are shocked at the many bills required to run a household. While it’s tempting to simplify and charge a blanket amount, adult children can be better prepared for living on their own by seeing a variable cost breakdown.
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For example, if the total amount of electricity or grocery bills were more expensive one month, the adult child is still responsible for covering a defined portion, such as 20 per cent. “It helps the adult child understand there’s variability to living expenses, and what they consume has an impact,” he said.
Similarly, Ms. Yanchuk Oleksy suggests sitting down with the adult child to go over the various expenses it takes to run a household as a homeowner, like the property tax bill, maintenance fees or snow removal costs. “Saving for a down payment is just the first step,” she said. “It’s not even close to the whole picture.”
