18 Years Old and Coming of Age
Do you have an 18-year-old at home soon? We have some useful tips for you as a parent.
Soon to Be of Age
The transition to adulthood brings significant changes. This marks the beginning of adult life, with increased responsibility and independence. The 18-year-old will now be responsible for paying their own bills, applying for loans and ordering credit cards. When you come of age, you also gain the right to vote, can get your driving licence and can purchase alcohol. Here is some valuable advice for both parents and young adults, so that you are well prepared when the 18th birthday suddenly arrives.
Identification
When your child turns 18, it is important that they verify their identity and update their customer information with us. We need this so that they can continue to be a customer with us. The 18-year-old can easily do this via the online bank or mobile banking app. Read more about identification here.
Savings in the child's name
You should consider whether you want to save for your children in your own name or in the children's names. Savings in the child's name means that the money becomes available to the child when they turn 18. This is worth thinking about, and discussing, before their 18th birthday.
Many parents do not want their young adult to have full access to all accounts on their 18th birthday. Some parents prefer to retain control of the money, and therefore choose to transfer it from the child's name back to their own before the child turns 18. This can be done in the mobile banking app or the online bank.
Insurance
Another important transition relates to insurance. Not all parents are aware of how long their children will be covered by their insurance policies. For example, children are covered by their parents' travel insurance until the child turns 21. For parents who have children's insurance, this will expire when the child turns 26.
If your 18-year-old has moved away from home, the child will no longer be covered by the parents' insurance. We offer the Ung (Young Adults) Package, a package that provides young people between 18 and 34 with combined home contents and travel insurance. They get everything in one package, for only NOK 161 per month.
Mobile Banking
Young adults gain access to all services in the online bank and mobile banking when they turn 18. Ask the 18-year-old to download the mobile banking app if they haven't already done so. This is a valuable tool that makes it easier to pay bills, transfer between accounts and keep track of finances.
Talk to your children about finances
It is important to help young people understand the value of saving and investing before it is time to move away from home. This can help them avoid financial problems and encourage them to make wise financial choices early in adult life. Saving will give them the opportunity to build a financial buffer for unforeseen events or the chance to achieve future goals or dreams. Advise young people that it is wise to start saving for things such as education, travel or home purchase as early as possible.
Create a budget together with the children
Suddenly having to manage one's own finances can be overwhelming and difficult in the beginning. A budget can help to gain better overview and control over one's finances. When young people reach adulthood and need to start studying or working, a budget can be an important tool. Talk to young people about how to set up a budget.
Saving in BSU home savings scheme for young people
Most 18-year-olds may not be thinking about buying a home just yet. Nevertheless, they will likely be grateful for having started saving early when the time comes to buy their first home.
With many benefits and the bank's best interest rate, the Home Savings Scheme for Young People (BSU) is a superb alternative for those saving for their first home.
For young people with taxable income, we recommend using a standard BSU account. The BSU scheme offers the opportunity to save up to NOK 27,500 per year and a total of NOK 300,000 at a good interest rate. In addition, you can deduct 10 per cent of the annual savings amount from your tax, i.e. up to NOK 2,750.
Boligspar Ekstra is well suited as additional savings for a home, either for those who have already filled up their standard BSU account with NOK 300,000, or for those who wish to start saving for children.