www.iva.co.uk

Hi guys, I have had some major change this year and need help with I & E.

My son turned 18 in April and is now working. This means that I no longer receive child maintenance and child benefit and have lost around £300. I understand that I now have to take his earnings into account and this is where I'm a bit stumped. He gives me £100 towards bills (so total loss is £200).

He rarely eats at home now so I will reduce food bill and also reduce clothes and mobile as he pays these himself.

I earn approx 55% more than he does so would this mean that he should pay 22.5% of the main bills? If that's correct the £100 more than covers it for bills but I'm worried he'll be asked to pay towards mortgage as well. Can someone tell me what happens in this case please?

I've done 5 years but expecting a further year. Poor guy was only 12 when I got us into this mess so I really don't want to take any more than I have to.

With these figures I can still afford the monthly payments so I'm not asking for a reduction.

I dont think he will be expected to pay towards the mortgage etc. I think a phone call to your case manager is the best plan.

Paul

I think that you should take a realistic rent from your son - he would not be able to get a private rental for £100 per month, so why should he expect you to keep him for that.

If he is still quite young, it is likely that he does not earn much, but by taking a realistic sum from him, you will be teaching him good budgetary skills for his own future, whilst ensuring that your IVA does not suffer due to the oss of your income.

As a guide, he ought to be paying at least 25% of his earnings to you for living costs.

Conversely, most parents are sympathetic to the fact that their child will need to start saving now if they are ever to get a deposit together for a deposit to either rent or buy.

Complications of IVA's apart my mum operated the 33% rule: a third of my wages were my keep, which I paid to her, a third I had to save and the last third I could do with as I wanted.

As it turned out, when I left home she had also been saving the thirds keep, which helped with my rental deposit and furnishings

A good rule foggy, I only paid £20 per week (yes I know!), but this was on the understanding that the majority of the remainder was saved for a house deposit (which I did)

Unfortunately most of us with teenage children have seen them go without things that their friends take for granted during the IVA years through no fault of their own, so when it comes to paying board we are reluctant to deprive them of their earnings.
It is essential that they learn to budget & I'm sure we would do anything to stop them making the mistakes we have where finances are concerned.

Ok, thanks. it's all clear now.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

Complications of IVA's apart my mum operated the 33% rule: a third of my wages were my keep, which I paid to her, a third I had to save and the last third I could do with as I wanted.

As it turned out, when I left home she had also been saving the thirds keep, which helped with my rental deposit and furnishings

He saves a third plus 25% goes on travel to work.