Over 18? Time to Stop Relying on Mom and Dad
When you were 11, did you wish you were 12? When you hit 13, did you start looking forward to 16? Chances are that when you were 18, you couldn't wait to make it to the legal drinking age. Now that you're an adult, do you wonder why you ever wanted to grow up? Being an adult is chalk full of responsibility, and most of that responsibility costs money. Here are just five of the high costs of being an adult:
When you were squatting at your parents' house, it's a pretty safe bet that you weren't paying a lick of rent. If you moved out of your parents' house and into a dorm room, you probably weren't paying for that either. Once you decide to move into your own apartment, you should know that the average cost of rent in America is just under $700 per month. Mind you that this is only rent; it doesn't include any utility bills that you'll be forced to pay. You may actually be better off buying a starter home. Then again, coming up with a ten percent down payment can be fairly difficult for someone just starting out.
Did your parents buy you a car when you got your driver's license? Maybe you saved up all of your birthday money and bought a clunker to tool around town in. As an adult, are you going to be happy driving a rust bucket through the city? Other adults aren't going to be impressed with you simply because you have your own car unlike your 16 year old friends were. If you want to buy a car that you'll be proud to own, expect to plunk down about $2,000 for a down payment. Once you've given your life savings to the car dealer, you can expect to pay anywhere from $350 to $500 a month for your new vehicle thank to your lack of credit history.
Are you aware of what types of insurance coverage your parents were paying for when you lived at home? You're going to quickly figure it out once you start living on your own. You'll be paying for health, life, auto and renters' or home insurance at a minimum. If you're lucky enough to be able to pay for health insurance through your employer, your premiums can be fairly inexpensive. If you're forced to pay for a private health insurance policy, you'll be paying through the nose. Of course, you can always skip paying for insurance. Doing so will only cost you your car and possibly your health and possessions.
Remember being at Mom and Dad's and opening the cupboard door whenever you were hungry? If you were like most kids in America, you didn't want for at least a can of soup and your mom or dad probably had dinner on the table every night. Now that you're on your own, you'll quickly find out just how much it costs to keep the fridge stocked and the cupboards from looking too bare. While you could realistically live on a diet of Ramen Noodles, do you really want to? Even if you very carefully stick to a shopping list, you can easily spend $200 a month on food. Think that you feel like going out to eat because you're too lazy to cook? Plan on spending at least $10 per meal.
When you were 16, it was easy to bat your eyes or hold your hand out and get Dad to pull $20 out of his wallet so you could go on a date or out with your friends. Unless you plan on sitting at home every night of the week, you'll need to budget for entertainment. Cable can easily run you $100 a month if you throw the Internet in with it, a night out at the movies will cost you $20 if you buy snacks and you'll be paying for your own dates from now on. Think you want to go to the bar and have a good time with your friends? $5 for a drink isn't unheard of. Once you start paying for your own entertainment, you may consider writing your parents a thank you note for all those times they footed the bill.
There's no doubt that being an adult comes with its perks; unfortunately, it also comes with a hefty price tag. Once you start carrying your own weight, you may wonder why 11-year old you ever wanted to grow up in the first place. Not only will you have to pay for the five things above, but you'll also have to start saving for retirement, asking yourself things like "are immediate fixed annuities a good idea?" What's that old saying about being careful what you wish for?
Amie Gottschalk is an avid tech blogger. You can follow her on Twitter @amiegottschalk.
