Child turned 18, now what?

[michelle4029]

Topic Title: Reader Case Study - Child turned 18, now what?

Life Situation: Single, age 41, one 18-year-old child who lives at home, Ontario Canada.

Gross Salary: $44,000/year

Take-home Salary: $2,873/month

Other Income: $100/month (government benefits - GST credit, climate incentive, etc)

Current expenses: $3,076/month (I averaged everything out over the last 12 months)
Rent: $1,833 (includes heat, water, electricity)
Tenant Insurance: $14
Internet: $63
Phone: $34 (this is for two plans)
Groceries: $416
Restaurants/take-out/grabbing coffee: $130
Household: $70 (anything from toilet paper to a patio set)
Clothing: $64 (for both of us, includes shoes, coats, etc)
Toiletries: $12
Haircuts: $20
Transit: $13
Gifts: $63 (most of this is my daughter’s birthday and Christmas)
Daughter’s spending: $100 (going to the movies/out to eat with friends/school events)
Spotify/Disney: $25
Medical/dental: $95 (medication, dentist, eye exams, eyeglasses, etc)
Car rental/gas: $88 (occasional trips out of town)
Other: $36

Assets:
$130,000 Tax-Free Savings Account
$10,000 Registered Education Savings Plan (for my daughter)
$3,000 Chequing Account

Liabilities:
No debt

Specific Question(s):
My daughter recently turned 18, which means I no longer receive the Canada Child Benefit each month. As a single parent with a relatively low-income, I was receiving about $600/month. $100 of that went toward monthly expenses and the other $500 was going into my TFSA and RESP.

Without that benefit, I’m now spending about $100 more a month than I’m bringing in. And I no longer have extra to contribute to savings.

I am actively looking for a new job with a higher salary, however, I’m picky. My current job is a relatively cushy 8-4 Monday to Friday office job. Never work weekends, evenings, or holidays, have decent PTO and benefits. The office is within walking distance which means I don’t need a vehicle or even a transit pass. I enjoy my work for the most part, like many of the people I work with, and it’s fairly low stress.

My daughter is also looking for a job so that she can cover some of her own expenses and save for college. She plans to work for at least one year before going to school.

Question: Am I okay to keep trucking along like this? Should I try to retrain or go back to school in my 40s in hopes that it will increase my income? If I don’t touch the TFSA and let it grow until I’m 65, will I be alright considering CPP, OAS, and GIS? My calculations show that at 5% interest, I will have about $440K by age 65 if I don't make any additional contributions, which gives me $1,466/month at 4% withdrawal. With CPP etc I think I will receive around $1,500/month. So roughly $3,000 total which is what I'm living on now.

[snacky]

I'm a low income-ish single parent living in a province west of you. My oldest is turning 18 this fall, and he will be paying rent. It will be less than he would pay to live independently, but there is a line that gets crossed at 18 where some degree of financial responsibility becomes appropriate. I suggest your daughter start paying $600/ mo, exactly what the missing child tax was. You also can give up responsibility for paying for her clothes and fun money. It doesn't make sense for you to go into debt when she can start standing on her own.

[secondcor521]

I agree with the idea of the daughter paying some rent.  I would base it on what it would cost her to live with two friends in a 2 or 3 bedroom apartment and, if she is industrious and well behaved, I would give her a deal so maybe charge half of that.  That way she's helping you out and you're still helping her out.  (Example:  3 bedroom student quality apartment is $1200 a month, her share would be $400 a month, I'd charge $200 a month.)

I also agree with the spending money and clothes.  Maybe pick one of those to do now (I'd start with spending money) and then do the clothes at the first of the year.

I live in a state south of the 49th parallel, so I don't know how home economics works in Canada, but I would say that all of your expenses seem reasonable to me except rent.  You're paying over 60% of your take home on rent, which will make it hard on the rest of your budget.

It would obviously be a step down in quality, but I think you'd get a lot of breathing room in your budget if you managed to find a place closer to 50% (or even 40%) - which would be about $1400 a month.

Most people, when given this kind of suggestion, will reply that they can't or won't move.  Maybe you live close to work, or near your daughter's friends or school, or maybe it's a nice neighborhood.  And moving is a royal pain.  All true perhaps, but also true is that your budget is now under strain and you want to resolve that strain.

You might be able to increase your income over time, but one of the advantages of reducing spending is that it is tax free.  What I mean is this:  $44K / 12 = $3,667 a month.  Your take home is $2873.  That's about a 22% reduction.  Some of that is maybe savings of some kind, but some if it is probably taxes.  Reducing your rent (compared to increasing income) is up to 22% more effective on a dollar-by-dollar basis in terms of balancing your cash flow.

[former player]

The biggest immediate change that can be made is for your daughter to get a job - any job - and start contributing to the household.

Have you told her what your financial situation is?  I think you should lay it all out for her the way you have for us.  Should she be paying half the household expenses now? Does she know about her RESP?

Is moving to a smaller/cheaper rental an option, perhaps when/if your daughter moves out?

On expenses, the obvious savings, while your daughter is not contributing to the household, appear to be:

No restaurant/take out/coffee expenses
No daughter's allowance
No car rental/trips out of town
No "other".
Taken together that puts you $250 excess every month to put into savings.

As to your job situation, while you were a single parent raising a school age child having a convenient low-stress job with set hours looks like a good option.  Now your daughter is an adult, in age even if not in other ways, you've a choice to make: do you continue with an easy but permanently financially limited life, or now you have more time and energy for yourself do you look for better paid options?  If you are ambitious (not everyone is) then you don't necessarily need to retrain or go back to school, you should be able to leverage your existing skills and experience into better paid work. Perhaps a career coach or counsellor might give you a boost in that direction, and might be worth trying before taking the time and expense hit from more education/training.

[snacky]

... all of your expenses seem reasonable to me except rent.  You're paying over 60% of your take home on rent, which will make it hard on the rest of your budget.

It would obviously be a step down in quality, but I think you'd get a lot of breathing room in your budget if you managed to find a place closer to 50% (or even 40%) - which would be about $1400 a month.

OP lives in a place with some of the most expensive housing on the planet. I think their rent is pretty reasonable for the region, possibly even kind of a deal.

[secondcor521]

... all of your expenses seem reasonable to me except rent.  You're paying over 60% of your take home on rent, which will make it hard on the rest of your budget.

It would obviously be a step down in quality, but I think you'd get a lot of breathing room in your budget if you managed to find a place closer to 50% (or even 40%) - which would be about $1400 a month.

OP lives in a place with some of the most expensive housing on the planet. I think their rent is pretty reasonable for the region, possibly even kind of a deal.

Yeah, there are places here in the US that have similar characteristics.  And these create housing and budgeting challenges for people who have relatively lower incomes.

But for budgeting purposes, the comparison shouldn't be to the price of housing relative to elsewhere but the price of housing compared to OP's income.  Unless the prices of all non-housing items in Ontario are relatively cheaper (and I doubt it would be, but maybe), then spending 60% of take home on rent is simply high and will create a budget crunch.

In the similar areas in the US, people tend to end up commuting from some distance away - the  greater the distance the greater the savings - or live in areas where the housing is older, smaller, or not as fancy.

Is there perhaps a bus system or other public transportation that goes by OP's place of work?  If so, I would follow that transportation system out perhaps half an hour, then go a mile or two away from the transportation stop.

Obviously OP has other options - increase income, spend from savings, cut the daughter-related budget items.

[Metalcat]

Is there any possibility for a substantial raise?

I think your salary is the equivalent of about $22/hr, which is what a lot of places are paying for truly entry level work in many regions of Ontario.

I was starring roles for $22/hr in 2019 that are now commanding $35/hr, easily.

I get that your job is relatively comfortable, but nearly doubling your income for similar level work would probably be a hell of a lot more comfortable. A lot of places are still desperate for staff. There are also still a lot of remote jobs.

You could also look into increasing your skills.

[michelle4029]

I'm a low income-ish single parent living in a province west of you. My oldest is turning 18 this fall, and he will be paying rent. It will be less than he would pay to live independently, but there is a line that gets crossed at 18 where some degree of financial responsibility becomes appropriate. I suggest your daughter start paying $600/ mo, exactly what the missing child tax was. You also can give up responsibility for paying for her clothes and fun money. It doesn't make sense for you to go into debt when she can start standing on her own.

As I said, she is looking for a job, so right now she doesn't have any money to contribute. I'm not going into debt as I can access the money in my TFSA until we figure this out.

[michelle4029]

You're paying over 60% of your take home on rent, which will make it hard on the rest of your budget.

It would obviously be a step down in quality, but I think you'd get a lot of breathing room in your budget if you managed to find a place closer to 50% (or even 40%) - which would be about $1400 a month.

Most people, when given this kind of suggestion, will reply that they can't or won't move.  Maybe you live close to work, or near your daughter's friends or school, or maybe it's a nice neighborhood.  And moving is a royal pain.  All true perhaps, but also true is that your budget is now under strain and you want to resolve that strain.

I agree that 60% is ridiculous, however the average rent for a 2-bedroom apartment here is over $2,100, so we are almost $300 cheaper than that. Anything less and we'd be living with cockroaches and bedbugs or needing to purchase a vehicle to live out of town.

[michelle4029]

The biggest immediate change that can be made is for your daughter to get a job - any job - and start contributing to the household.

Have you told her what your financial situation is?  I think you should lay it all out for her the way you have for us.  Should she be paying half the household expenses now? Does she know about her RESP?

Is moving to a smaller/cheaper rental an option, perhaps when/if your daughter moves out?

On expenses, the obvious savings, while your daughter is not contributing to the household, appear to be:

No restaurant/take out/coffee expenses
No daughter's allowance
No car rental/trips out of town
No "other".
Taken together that puts you $250 excess every month to put into savings.

As to your job situation, while you were a single parent raising a school age child having a convenient low-stress job with set hours looks like a good option.  Now your daughter is an adult, in age even if not in other ways, you've a choice to make: do you continue with an easy but permanently financially limited life, or now you have more time and energy for yourself do you look for better paid options?  If you are ambitious (not everyone is) then you don't necessarily need to retrain or go back to school, you should be able to leverage your existing skills and experience into better paid work. Perhaps a career coach or counsellor might give you a boost in that direction, and might be worth trying before taking the time and expense hit from more education/training.

Yes, as I said, she is currently looking for a job. She knows about the RESP and is aware of the financial situation. Once she starts working, she will be paying for her "fun" expenses. Depending on how much she is working, I will likely ask her to contribute something to groceries or rent as well.

If/when she moves out, I am 100% open to finding a smaller place, however, I don't see that happening anytime soon.

Do you have any ideas in terms of how I can leverage my skills into a better income? I've been working in offices for about 8 years, doing admin work. Prior to that I held minimum wage jobs before my daughter was born and while she was young.

[michelle4029]

Is there any possibility for a substantial raise?

I think your salary is the equivalent of about $22/hr, which is what a lot of places are paying for truly entry level work in many regions of Ontario.

I was starring roles for $22/hr in 2019 that are now commanding $35/hr, easily.

I get that your job is relatively comfortable, but nearly doubling your income for similar level work would probably be a hell of a lot more comfortable. A lot of places are still desperate for staff. There are also still a lot of remote jobs.

You could also look into increasing your skills.

I'd love to double my income but most of the jobs that I'm qualified for are in the $20-25/hour range. I've spend most of my life working minimum wage jobs, and only got out of that about 8 years ago. If you have any suggestions for office admin work that pays more than I'm making, I'd love to hear them.

[Metalcat]

Is there any possibility for a substantial raise?

I think your salary is the equivalent of about $22/hr, which is what a lot of places are paying for truly entry level work in many regions of Ontario.

I was starring roles for $22/hr in 2019 that are now commanding $35/hr, easily.

I get that your job is relatively comfortable, but nearly doubling your income for similar level work would probably be a hell of a lot more comfortable. A lot of places are still desperate for staff. There are also still a lot of remote jobs.

You could also look into increasing your skills.

I'd love to double my income but most of the jobs that I'm qualified for are in the $20-25/hour range. I've spend most of my life working minimum wage jobs, and only got out of that about 8 years ago. If you have any suggestions for office admin work that pays more than I'm making, I'd love to hear them.

A lot of medical/dental office admin jobs pay more than that, especially dental. You won't make a huge salary starting out, but once you have the skills, offices will be willing to give you massive pay bumps to poach you because there's a severe shortage of dental admin staff, and unlike medical admin, there is no training program for the skills.

I've seen experienced admins getting offers over $40/hr.

As I said, you may want to upskill because there are just so so many jobs out there these days that pay much, much better than you are making for not a lot more skill.

Have you spent some time on Indeed to see what's out there and what skills might be easiest for you to pick up? I get job alerts from Indeed daily just so that I have a solid sense of what the job market is looking like.

[mistymoney]

your job sounds cushy, and I'm jealous.

Do you get annual increases? when is the next one due? You could maybe speak with your boss about what you've brought to work, your increased experience/contriutions compared to last year and ask for a larger than usual raise.

Are there any promotional opportunities? what is the next step for you? You say you are admin - what are your advancement steps or interest - like moving into bookkeeping, office manager, or somesuch? Is there a promotional opprotunity at your current employer or would you need to move employers for such a thing?

Are there any admin functions you could offer as a contract employee? would give up some of you weekend and/or evening time, but if you could pull in 40-50/hour with no benefits for something like 5 hour projects here and there, 1-2 a month, could make a real difference.

[secondcor521]

You're paying over 60% of your take home on rent, which will make it hard on the rest of your budget.

It would obviously be a step down in quality, but I think you'd get a lot of breathing room in your budget if you managed to find a place closer to 50% (or even 40%) - which would be about $1400 a month.

Most people, when given this kind of suggestion, will reply that they can't or won't move.  Maybe you live close to work, or near your daughter's friends or school, or maybe it's a nice neighborhood.  And moving is a royal pain.  All true perhaps, but also true is that your budget is now under strain and you want to resolve that strain.

I agree that 60% is ridiculous, however the average rent for a 2-bedroom apartment here is over $2,100, so we are almost $300 cheaper than that. Anything less and we'd be living with cockroaches and bedbugs or needing to purchase a vehicle to live out of town.

Does Ontario not have any public transit?

Would an inexpensive vehicle pencil out?

Would it be more economical to rent a place with more bedrooms and share with another couple or individual or small family?  I know around here that 2 bedroom places in particular are pricy compared to three bedroom places.

What do the other admins in your situation do for housing?

[SunnyDays]

Can you get an additional part time job for a while until your daughter starts covering her own expenses and paying you rent?  You only have to make the $600 you're no longer receiving, so about 40 work hours per month at minimum wage should do it.  If you can work one weekend day and one evening per week, you're covered.

[ixtap]

I would say you should each put in a bit of a hustle to make up for the savings that have already been spent down, then she can continue to contribute and you can step back to your current lifestyle.

Moreover, come.up with a plan. You just can't afford $100 for her socializing, she needs to deal with that herself starting (well, immediately, she only gets money for things directly related to getting a job). She also starts paying for her own clothes starting X. And she will start paying a token rent starting Y.

For anyone facing a similar situation, I would make this plan before they turn 18. Encourage some kind of work and start having younger teenagers cover certain personal expenses.

[Cannot Wait!]

Look into dog walking or pet sitting if you or your daughter like animals - can be very lucrative!

[Dictionary Time]

Phone: $34 (this is for two plans)
Groceries: $416
Restaurants/take-out/grabbing coffee: $130
Household: $70 (anything from toilet paper to a patio set)
Clothing: $64 (for both of us, includes shoes, coats, etc)
Toiletries: $12
Haircuts: $20
Transit: $13
Gifts: $63 (most of this is my daughter’s birthday and Christmas)
Daughter’s spending: $100 (going to the movies/out to eat with friends/school events)
Spotify/Disney: $25
Medical/dental: $95 (medication, dentist, eye exams, eyeglasses, etc)
Car rental/gas: $88 (occasional trips out of town)
Other: $36

First thing is too give yourself some grace! Yes, you’re in a less than ideal position right now. But all the work and good decisions you have made along the way mean that you have some time to think things out and act proactively and thoughtfully.

Moving and retraining may be good moves, or they could be boondoggles. You live by work and are carless, I would think long and hard before giving that up. And the work life balance that your job offers is a real factor to consider. I work in the low end of the job market too and have clawed my way into a similar position, so I understand.

It would be nice if your daughter could pitch in. If she’s planning for college and saving for that, that’s an investment on her part as well.  You don’t want to ask too much of her and have her future success in jeopardy.

Have you tried a spending fast? For a month at least stop all non essential purchases. No clothes or coffee out or trips. That will put you back in the black and help you clarify what’s important. You can’t sustain that level forever. But it’s a reset and buys you time.

Many (most) people in your situation would be over their head in debt! And they wouldn’t be thinking about this loss of income until it was too late. You sound like you can handle this.

[Metalcat]

Phone: $34 (this is for two plans)
Groceries: $416
Restaurants/take-out/grabbing coffee: $130
Household: $70 (anything from toilet paper to a patio set)
Clothing: $64 (for both of us, includes shoes, coats, etc)
Toiletries: $12
Haircuts: $20
Transit: $13
Gifts: $63 (most of this is my daughter’s birthday and Christmas)
Daughter’s spending: $100 (going to the movies/out to eat with friends/school events)
Spotify/Disney: $25
Medical/dental: $95 (medication, dentist, eye exams, eyeglasses, etc)
Car rental/gas: $88 (occasional trips out of town)
Other: $36

First thing is too give yourself some grace! Yes, you’re in a less than ideal position right now. But all the work and good decisions you have made along the way mean that you have some time to think things out and act proactively and thoughtfully.

Moving and retraining may be good moves, or they could be boondoggles. You live by work and are carless, I would think long and hard before giving that up. And the work life balance that your job offers is a real factor to consider. I work in the low end of the job market too and have clawed my way into a similar position, so I understand.

It would be nice if your daughter could pitch in. If she’s planning for college and saving for that, that’s an investment on her part as well.  You don’t want to ask too much of her and have her future success in jeopardy.

Have you tried a spending fast? For a month at least stop all non essential purchases. No clothes or coffee out or trips. That will put you back in the black and help you clarify what’s important. You can’t sustain that level forever. But it’s a reset and buys you time.

Many (most) people in your situation would be over their head in debt! And they wouldn’t be thinking about this loss of income until it was too late. You sound like you can handle this.

To be fair, she's in Canada where world-class universities cost around $7000/yr, and federal student loans are interest free. So the calculus on "saving for school" is very different here.

[MaybeBabyMustache]

What are your daughter's plans in the next year or so? Has she graduated from high school? Is she looking at college, or planning for a job right away? I suppose I'd caution her getting a job at the expense of investing in college, because that seems like a potential short term trade off with long standing implications.

If your daughter decided to move out & go to college, get a job & live with friends, what would you do? I wouldn't plan my personal financial situation around an 18 year, particularly one that may want to invest in her future for college.

Over the summer/having her get a job seems like a totally reasonable option. I guess another question... what were you envisioning would happen when she turned 18? I don't ask out of judgement, because I think you're doing a really admirable job with your finances. Just trying to get a better read on what you'd planned to do once she aged out of those benefits.

Options that don't include your daughter:
-Rent out a room in your house
-Get a second job
-Move somewhere less expensive (understood that this may be both unpalatable & unrealistic)
-Cut other expenses

Are you committed to living where you are? Are there less expensive neighborhood options that would allow you to still keep your job or something similar, while paying less in rent? I'm not feeling great about your long term financial stability. What happens if your rent gets raised? How will you keep afloat? I'd be willing to look at more drastic options in your situation.

[lhamo]

Do you like (or can you at least tolerate) little kids?

Many urban families struggle to find PT child care.  Here in Seattle, I think the hourly rate is at least $20-25.  A couple of nights a week of that would not be too difficult (many kids will be asleep most of the time the parents are out) and would give you a nice cash boost.    Line up a family or two and I bet you will have many of their friends beating down your door.

[calimom]

OP, I faced a similar situation when my two older children turned 18 and aged out of Social Security benefits from my late husband's account. Both had firm college plans and worked full-time the summers leading up. My eldest left for school, and due to Covid, my son did remote learning his first year. Summers I didn't/don't ask for rent or living expenses, the expectation is that any earnings after their own fun money are saved for the school year which is then supplemented by part-time jobs. That's our deal. My youngest will be graduating high school in a year and the same thing applies. Our time receiving Social Security will come to an end then and while I fully accept that it's time, it's also daunting not to think of those funds hitting my account on the third of every month.

You've had some great suggestions and encouragement on this thread, most of which I can only echo. Yes, your daughter needs a job, like yesterday. You shouldn't have to pay for any entertainment or clothes going forward, and keeping her on your cheap (well done!) phone plan is a no-brainer. Should she not be in school come fall, charging a nominal rent/food is reasonable. I agree that you likely have more juice in the workforce than you may think. Asking for a raise at your current employer is the place to start, and from there investigating what jobs you could apply for that pay a more reasonable wage. School or a training program doesn't need to be off the table. A low-impact side hustle like catering, childcare or pet sitting seems like a good option.

You've done an impressive job in raising your child to semi-adulthood and keeping expenses manageable and remaining debt free, all while accumulating savings. You're in better shape than you realize.

[Gremlin]

I would suggest you be gentle with yourself.  You have done amazingly well to have raised a child to adulthood as a single parent on a relatively low wage and STILL have a six figure net worth.  Hats off to you!  You are amazing!

You are currently in a state of flux.  That state of flux is costing you $100 a month.  I wouldn't stress over it as you already have a number of things that you and your daughter are trying to do to address the state of flux - you looking for a higher paid job, your daughter looking for a job, etc.

Having said that, I'd also, in the interim, have a conversation with your daughter.  You are starting to treat her like an adult and that means making adult decisions about finances.  Take her through your budget (if you haven't already).  Mention that you are no longer in a position to be saving towards your own future until some more money comes in or spending gets tightened.  I'd ask her for her thoughts on this.  I look at your budget and see your daughter's allowance as a very generous expense that's a bit beyond what you can reasonably afford right now, but maybe she needs to see the whole picture to understand that herself?

Have a conversation with her about which expenses will transition to her and when.  I personally think it's fine to 'cover' her expenses until she finds that job, but at some point she transitions financially from child to adult.

[Villanelle]

I think it's time to ave a firm hand with DD.  You can't afford your current lifestyle.  She needs to get a job--any job--ASAP.  Like, something that starts within the net week.  Fast food, babysitting, whatever.  She can continue to look for something better, but she needs to start getting some kind of income ASAP.  She doesn't have the luxury of being able to shop for an appealing job or a job that pays super well. As I said, she can continue to look and move on when she finds something better, but the priority needs to be some income, starting immediately. You aren't in a position to support her as you have been; she needs to know that and handle it. 

In the mean time (for the next week, which is how long she has to land *something*) she gets *nothing* for anything not 100% necessary.  That's not because you are being mean or putative; it's because you can't afford it.  Explain that rationale and tat this is the reality until finances loosen up a bit. 

This is only temporary.  Remind yourself and your DD of that.  In a month, once she's working again, you can loosen the reins a bit. 

[okits]

I want to echo the others and say I think you've done a great job, as a single parent with modest income.  Congratulations on raising your daughter, giving her a hand up with an RESP, having $130k in your TFSA, and no debt!

In the short term, it's probably easiest to squeeze $100 a month by paring down a few categories a little.  If you cut your daughter's pocket money and your restaurant spending in half, your shortfall would be gone.

I am sympathetic that it would take the right job for you to leave this one.  Adding a car or transit commute can have time, energy, and monetary costs that are non-negligible.

If you haven't had a cost-of-living-adjustment in a while, you can certainly make a case for one with your employer.  I understand this may feel very difficult to do, especially if you come from a background of low-wage, underappreciated work.  I'm just saying it would be a reasonable thing to ask for.

A second job on the side that makes a few hundred bucks most months would help you a lot.  If your daughter being grown up means less parenting energy from you (one hopes!), that's where that extra energy could go.  A second job could also open up contacts and possibilities for a better paid, full-time job.

If I don’t touch the TFSA and let it grow until I’m 65, will I be alright considering CPP, OAS, and GIS? My calculations show that at 5% interest, I will have about $440K by age 65 if I don't make any additional contributions, which gives me $1,466/month at 4% withdrawal. With CPP etc I think I will receive around $1,500/month. So roughly $3,000 total which is what I'm living on now.

I would advise you spend more time on retirement planning.  You need to think about inflation, illness or disability along the way, any help you may want to extend to your daughter even in adulthood, and the fact that aging (and infirmity) can increase your living costs.  Life will probably spring a few surprises on you along the way, too.

Is your TFSA invested in a way that yields, over the long term, a return in excess of inflation? 

I hope your daughter finds a job soon, to help with living expenses.  The frugality and living skills you've modelled and taught her (and will continue to teach her) are invaluable.  I hope she's paid attention and has good self-sufficiency.

Best wishes to you both, let us know how you get on!

[Margie]

It would be nice if your daughter could pitch in. If she’s planning for college and saving for that, that’s an investment on her part as well.  You don’t want to ask too much of her and have her future success in jeopardy.

I agree with this!  I would be careful that you don't make her feel like she has to take any job and then get her stuck in a minimum wage job cycle where she hesitates to go to college or university. 

Good luck!!!

[okits]

Hopefully this payment represents some temporary relief for your budget.

Grocery rebate payment

[Cassie]

Not needing a vehicle or transit pass is a big money saver. I would discuss your budget with your daughter so she understands why it’s important for her to contribute to the household expenses.

[mistymoney]

I think it's time to ave a firm hand with DD.  You can't afford your current lifestyle.  She needs to get a job--any job--ASAP.  Like, something that starts within the net week.  Fast food, babysitting, whatever.  She can continue to look for something better, but she needs to start getting some kind of income ASAP.  She doesn't have the luxury of being able to shop for an appealing job or a job that pays super well. As I said, she can continue to look and move on when she finds something better, but the priority needs to be some income, starting immediately. You aren't in a position to support her as you have been; she needs to know that and handle it. 

In the mean time (for the next week, which is how long she has to land *something*) she gets *nothing* for anything not 100% necessary.  That's not because you are being mean or putative; it's because you can't afford it.  Explain that rationale and tat this is the reality until finances loosen up a bit. 

This is only temporary.  Remind yourself and your DD of that.  In a month, once she's working again, you can loosen the reins a bit.

I think OP is likely in the best position to determine if a firm hand would be at all helpful. DD may have her plans well in hand, but OP could clarify what might be most helpful to her.

I say this as someone who posted a case study a few years ago, I was looking for financial, not parenting advice. Repeated posting on having my college student pay for their own cell phone bill was not helpful as it was not what I was going to do and distracted from the advice I was looking for. OP may feel differently, but she hasn't posted in a bit.

[Villanelle]

I think it's time to ave a firm hand with DD.  You can't afford your current lifestyle.  She needs to get a job--any job--ASAP.  Like, something that starts within the net week.  Fast food, babysitting, whatever.  She can continue to look for something better, but she needs to start getting some kind of income ASAP.  She doesn't have the luxury of being able to shop for an appealing job or a job that pays super well. As I said, she can continue to look and move on when she finds something better, but the priority needs to be some income, starting immediately. You aren't in a position to support her as you have been; she needs to know that and handle it. 

In the mean time (for the next week, which is how long she has to land *something*) she gets *nothing* for anything not 100% necessary.  That's not because you are being mean or putative; it's because you can't afford it.  Explain that rationale and tat this is the reality until finances loosen up a bit. 

This is only temporary.  Remind yourself and your DD of that.  In a month, once she's working again, you can loosen the reins a bit.

I think OP is likely in the best position to determine if a firm hand would be at all helpful. DD may have her plans well in hand, but OP could clarify what might be most helpful to her.

I say this as someone who posted a case study a few years ago, I was looking for financial, not parenting advice. Repeated posting on having my college student pay for their own cell phone bill was not helpful as it was not what I was going to do and distracted from the advice I was looking for. OP may feel differently, but she hasn't posted in a bit.

"Have your roommate get a job and start paying rent" is financial advice, not parenting advice.  OP is free to ignore it, as anyone is with any advice.  But to me, it seems like the most obvious answer to their situation, and it can be a short term thing.  OP's roommate/daughter starting to babysit and throwing some money into the household budget need not be long term or a derailment of their other plans.  They can stop at any time once there is some other financial resolution. 

[reeshau]

If I don’t touch the TFSA and let it grow until I’m 65, will I be alright considering CPP, OAS, and GIS? My calculations show that at 5% interest, I will have about $440K by age 65 if I don't make any additional contributions, which gives me $1,466/month at 4% withdrawal. With CPP etc I think I will receive around $1,500/month. So roughly $3,000 total which is what I'm living on now.

I would advise you spend more time on retirement planning.  You need to think about inflation, illness or disability along the way, any help you may want to extend to your daughter even in adulthood, and the fact that aging (and infirmity) can increase your living costs.  Life will probably spring a few surprises on you along the way, too.

Is your TFSA invested in a way that yields, over the long term, a return in excess of inflation? 

I don't have anything to add in terms of actions, but I want to reinforce the point above.

It's not clear if you using nominal or real (inflation-adjusted) returns but it is a warning sign when you are comparing income in 25 years with today's spending.  Even at 2% inflation, the common target of central banks, expenses in 25 years will be 64% higher.  $3,000 of expenses in 2023 will be $4,921.82 in 2048.  At 3%, they would more than double.  And of course, that is just the beginning of retirement; hopefully you will live long after that point, during which inflation willl continue.  It is not intuitive for anyone to think in timeframes this long, or in nonlinear (compounding) math.  Put it down in writing, or on a spreadsheet.

You have immediate concerns with launching your daughter into adulthood.  But you are also not "almost there" in terms of saving for your retirement.  I agree that you have done well so far, given your means.  But you can't afford to rest on your laurels with regard to retirement saving.

[2Birds1Stone]

Daughter needs a job, you could use a raise as others have pointed out, but supporting an 18 year old who is able bodied and mind should be a short term situation till she's able to find something......even at $15/hr and 20 hours a week she could be pulling in an extra $1,200/month into the household.

[RetiredAt63]

You didn't say where in Ontario you are - if you are in the GTA then your rent is super good.  If Ottawa, still really good.

Is your daughter still in high school or has she graduated?  Is she planning for university or community college?  Is there one that is local or will she have to commute or move out to attend?  Will her acceptance into the school she wants be more difficult if she takes a year off, or easier, or the same?  If she lives at home (the smart move financially) will her RESP cover most of her costs?  The answers to these questions affect her education plans for the next few years, and that affects your planning as well.

And a money-saver - if she knows where she wants to attend (even better if she is already accepted), and you could get a job there, you would still have good working conditions (probably better, since it would be a unionized job), and her basic tuition would be covered.