Leaving your parents’ house: 5 mistakes to avoid

“It is very important to create a budget when moving out of your parents’ house,” says Nadine Kaufmann, head of prevention at budget and debt consultancy Aargau-Solothurn. It’s like going to dental hygiene: you don’t enjoy doing it, but it’s definitely worth it in the long run. It is best to prepare the plan before moving. Then you will immediately know what living conditions you can meet in the future. Additional costs can arise with rent, which includes insurance, health insurance, electricity, internet, radio and television fees, as well as regular meal costs. “Many young adults take this for granted.”

For unforeseen expenses, such as in case of illness, repairing your Vespa, or if you lose your mobile phone, Kaufmann recommends always putting some money in a separate account (called a reserve). It says almost a fifth of households in Switzerland have difficulty paying an unexpected 2,500-franc bill, mainly due to low and irregular income.

The most common type of debt in Switzerland is tax debt, says Kaufmann. This also applies to young adults. Many face new wage and tax conditions after initial training and their first permanent job. Especially if they had to pay little or no tax during their education. “They are shocked when they see their tax bills.” This difference increases if the tax rate at the new place of residence is higher than the tax rate at the parents’ place of residence. “Taxes are part of every budget plan,” says Kaufmann. “It may also be helpful to consider the tax rate in the area when looking for an apartment.”

Parents are obliged to support their children at least until they reach adulthood or complete their primary education. This means that parents must financially support their children until they complete their apprenticeships or earn a bachelor’s degree. “Nonetheless, it is advisable for young people to take responsibility for certain living expenses as early as possible,” says Kaufmann. Those who talk about money at home, create a budget, and learn to spend their money consciously are better equipped for financial independence.

Everyone who goes out for the first time wants to prove their independence to their parents. Kaufmann recommends getting support quickly if you have financial problems. Whether it’s with parents, friends, or budget and debt advice. Because debt is often the result of a longer process. As long as the amount of debt is still manageable, the chances of getting out of debt again are high.