PHOENIX - Back in the day, it was typical for children to move out of the house at 18. Times have changed and children are now living with their parents well into their 20s.
In fact, Steve and Annette Economides say 60 percent of parents today are financially supporting their children.
With five children moving in and out of the house, they have a quality understanding of what works and doesn't work when it comes to budgeting and developing financial independence.
We sat with the Economides and found out all of the secrets to ensuring children understand money and saving.
“According to the USDA it will cost you $261K to raise a child from 0-17, and that doesn't include college. We did it for $60,000 per child," said Steve.
So, what's their secret?
Steve says its important to teach children the fundamentals about money.
“We have to instill in them how to manage money, how to work, how to plan, how to save, how to set goals," he said.
He says it is important to teach children how to be adults. This pill maybe hard to swallow, but Steve believed if a child returns home after 17, parents should charge rent.
Annette wants parents to understand that it's their house so they should draft a rental agreement.
“What are the rules for social media in your house? What are rules for friends coming over? What are rules for car usage? When is rent supposed to be paid?" she said.
The duo warns that if home is made too comfortable, children have no motivation to leave. The days of being their bank are over.
The biggest challenge: To pay rent, a child needs to have a supportable income.
Steve has an answer for that too.
“When you are on unemployment DES requires you to submit five job applications per week. We do the same thing," he said.
Parents also need to teach their kids how to properly apply for a job, nail an interview and, most important, be willing to follow up with a phone call.
The Economides have all sorts of tools to help you help your kids on their website, www.moneysmartfamily.com.