Ranchers-turned-TikTok stars recently found themselves making headlines after they revealed their decision to charge their daughter, who had recently graduated high school, rent to continue living at home. Erika and Cody Archie, first-generation ranchers, discussed the criticism they received for their unconventional approach on FOX Business’ Varney & Co.
The decision to charge their 19-year-old daughter $200 a month in rent was intended to teach her valuable money management skills and prepare her for the future. However, this approach was met with backlash from individuals who believed children should be allowed to stay with their parents for free indefinitely.
Despite the mixed reception, Erika stood by their decision, emphasizing the importance of instilling the understanding that nothing in life comes for free. Teaching their daughter to save money and pay for her living expenses, whether through rent or a mortgage, was a crucial life lesson the Archies wanted to impart.
Notably, Ramsey Solutions founder Dave Ramsey supported the couple’s decision, asserting that their daughter is now well-prepared for life due to the financial responsibility she has learned through paying rent.
Interestingly, their daughter did briefly move out to explore independence but ultimately returned to live with her parents. This experience provided her with valuable lessons, and a new arrangement resulted in her working for her rent.
The discussion also touched on cultural norms surrounding leaving the parental home. Stuart Varney, the host of Varney & Co., reminisced about his upbringing in England half a century ago, where it was customary for children to leave home at 18 years old. If they chose to stay, they were expected to contribute by paying rent to their parents. Varney wondered if this practice is still prevalent in America today.
Erika expressed that while it may not be a common practice in the U.S., she and Cody teach their children the importance of not relying on free rides and being financially independent.
Now, let’s delve deeper into the implications of this story and explore potential future trends related to these themes.
The Archies’ decision to charge their daughter rent raises thought-provoking questions about financial responsibility and the transition to adulthood. As the cost of living continues to rise and economic uncertainty prevails, it becomes crucial for young adults to develop solid financial skills from an early age. Teaching them the value of money and the need to save helps prepare them to navigate the challenges they will inevitably face as they enter the real world.
This narrative also intersects with the ongoing discussion surrounding the “boomerang generation.” With shifting societal and economic dynamics, more young adults are finding themselves returning to their parents’ homes after college or during periods of financial instability. The Archies’ story exemplifies a different approach, one that aims to provide a structured environment where their daughter can learn financial independence even while living at home.
Moreover, the current state of the world, with the COVID-19 pandemic causing widespread economic upheaval, may further necessitate the need for young adults to rely on their parents for support. In such challenging times, teaching financial responsibility becomes even more critical.
Looking ahead, it is conceivable that more parents may adopt a similar approach to the Archies, understanding the importance of equipping their children with financial skills for a successful future. By charging rent or implementing other financial responsibilities, parents can create a supportive yet independent environment that encourages young adults to learn and grow.
However, it is also crucial to acknowledge the potential pitfalls of this approach. Each family’s circumstances and financial situations vary, and what may be suitable for one family may not work for another. It is important to strike a balance between teaching financial responsibility and ensuring that young adults have the necessary support to thrive.
In conclusion, the Archies’ decision to charge their daughter rent in order to teach her financial independence has sparked a fascinating conversation about the importance of instilling money management skills in young adults. While the practice may not be widespread, it serves as a reminder of the shifting dynamics and emerging trends in the transition to adulthood. As economic uncertainty persists, equipping the younger generation with financial skills becomes a crucial priority. Whether more families embrace this approach or explore alternative methods, the goal remains the same: preparing young adults for financial success and independence in an ever-changing world.