Sub category: Parents
20 September 2018

Finance tips before they leave the nest

Your teens are approaching the end of high school and they’re ready to leave the nest. Whether they’re going to uni or TAFE, are about to start full time work or an apprenticeship, managing their finances will be important and there are a few things they can start thinking about before they head off.
So, when you’re helping them get ready to go, give them a rundown on some of these money skills to give them a kick start.

The costs of getting their own place

Moving out means your teen will need to think about the expenses that come with housing applications and renting. There are a few key steps to fill them in on before they start looking:

  • Documentation: They’ll need to assemble the documents they need to make a first time renter’s application stronger. This will include things like proof of income, photo ID and personal references. References can come from their employers, teachers or coaches.
  • Bond: Make bond one of their main savings goals. Because bond is usually equal to the amount of four weeks’ rent in one hit, it can be quite expensive depending on where your teen wants to live. They can set their savings goal by researching the average weekly rent for the area in which they’d like to live in and multiplying that by four. Remind them that they only get the bond back if they keep the property in good condition.
  • House hunting: Show them some resources that help that younger people to find others to live with (such as Flatmate Finder). If they’re going to uni they can also live on campus, or look on the campus’ noticeboards and social media groups to find roommates.
  • Paying rent: Teach them to set up automatic transfers to their real estate agent so they never miss a payment.
  • The lease: Show them how important it is to read and understand everything before they sign it.
  • The condition report: It’s important for them to fill out the condition report diligently and accurately at the start of their lease and keep a copy.

Flatmate finance

Living with friendly and reliable flatmates can be less expensive and less lonely than living alone. However, living with others opens up other new financial questions. Like, how should they split their household expenses? Who will be reliable if they shortfall to pay the rent. But also, who should manage the rental payments?

Apps like Splitwise can help groups of people evenly split household expenses such as toiletries between them – so tell them to have a look at those types of apps.

If your child has an ING Orange Everyday Youth account, they can transfer their rental payment to their housemate’s instant payments eligible bank account. From there, the housemate will have access to real time payments and can pay the rent to the Landlord/Real Estate. This will help alleviate any friction that comes with paying people back within the household.

Bills and regular expenses

Given them some real life examples – sit down with your teen when you’re paying a household bill so they see what’s involved. Show them the different ways that bills can be paid such as direct deposit, Bpay, using the Post Office and using debit cards.
As a practical step, have them outline the budget for the week’s groceries and living expenses so they get practice of doing it for themselves. If they haven’t been doing this so far it will give them a really good idea of the value of money when it comes to food and other living expenses.

Moving out is a big step, so help your teens put the best foot forward.
They’ll manage their money better for the future with The ING Orange Everyday Youth account.

For the curious:
Orange Everyday Youth is an account for individuals who are 15 to 17 years old. Joint accounts and overdrafts are not available for Orange Everyday Youth.
All Orange Everyday Youth accounts will receive the Global ATM Rebate Offer and the International Transaction Fee Rebate Offer. This means that:
• for ATMs in Australia – any ATM fee charged by the ATM operator is paid back to you immediately following the transaction,
• for ATMs outside Australia:
ING will pay back the International ATM withdrawal fee of $2.50 immediately after it is charged, and
ING will pay back any ATM fee charged by the ATM operator when your transaction is finalised (settled).
While a transaction is pending, the amount the ATM operator charges in fees will be deducted from your available balance and will be paid back to you after the transaction is finalised (settled). ATM transactions made outside Australia can take up to 5 business days to finalise, so that means it can take up to 5 business days for us to pay back overseas ATM fees to you, and
• for ING international transaction fees on card purchases – ING will pay back the International Transaction fee of 2.5% of the amount of the international transaction immediately after it is charged. The person you’re buying things from may charge you a separate fee for their services (which we will not pay back to you under this offer).
This offer may be changed or withdrawn at any time at ING’s sole discretion.
Read the Orange Everyday Youth Terms and Conditions and Fees & Limits Schedule available at, and consider if it is right for you. If you have a complaint, please call us on 133 464 at any time as we have procedures in place to help resolve any issues you may have.
Orange Everyday Youth is issued by ING Bank (Australia) Limited ABN 24 000 893 292 (ING), AFSL and Australian Credit Licence 229823.
Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you.
ING is a business name of ING Bank (Australia) Ltd.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms

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