You are legally an adult on your eighteenth birthday. This means that all sorts of changes are coming. Also financially. Where parents could arrange everything in the past, an adult child has to pay attention to a number of things himself. These are the main financial changes.
1. Health insurance (and applying for health care allowance)
“First of all, it is wise to arrange your own health insurance”, says pocket money expert Annelou van Noort. Until the age of eighteen you are co-insured with your parents free of charge. If you do nothing, you will get the same package as they have. But maybe you just need a different cover.
“Take out your own health insurance policy can be quite complicated. It is also important for parents to clearly explain what the deductible means, for example, and when you will receive a bill when you go to a doctor or hospital.”
This also includes applying for the care allowance. Because when you turn eighteen, you can apply for allowances and benefits yourself. In 2023 you can receive healthcare allowance if your annual income does not exceed the limit of 38,520 euros. The maximum healthcare allowance for someone without an allowance partner can amount to 154 euros. “Many young people forget to apply for this,” says Van Noort.
2. Important Insurance and Letters
“In the period before you turn eighteen, you will receive a letter from the government about your financial responsibilities,” says general director Natasha Dasburg of the Budgetcafé Foundation, which guides and supports people in their financial situation. “But it doesn’t actually say much, except that you have to apply for your DigiD, student grant and healthcare allowance.”
And that while other things are also important. For example, it is smart to check the conditions of the liability insurance. With most insurers, young people can be co-insured with their parents until the age of 27.
We ultimately learn the most from doing it when it is appropriate.
However, conditions often apply. For example, you still have to live with your parents or follow a study. The same goes for many travel insurance policies. Are you moving into rooms and do you want your belongings to be insured? Then you have to take out the contents insurance yourself.
“Teach young people about matters such as tax returns,” Van Noort advises. “The government sends important letters in difficult language, help with that as a parent. That independence takes some getting used to. Check around the summer holidays whether the travel insurance has been arranged and look at the health insurance together in December. Ultimately, we learn the most from it. to do it when appropriate.”
3. Changes in banking
Savings accounts for the child are no longer under the control of the parents after the eighteenth birthday. “It can sometimes be exciting whether the money you have saved for them will be used for its intended purpose,” says Van Noort. “But if you have taught your child how to handle money and you have had regular money talks, nothing has to go wrong.”
4. Student finance
If you are enrolled in an MBO, you can apply for student finance from DUO from the age of eighteen. This amount consists of a student travel product, supplementary grant, tuition fee credit and/or a loan. “Apply for student finance well in advance,” advises Dasburg. “DUO needs eight weeks to assess your application. Only take out a loan in an urgent need.”
In September, student finance will be reintroduced for higher vocational education and university students – there is no minimum age – and they are entitled to a basic grant. The student grant will then no longer be a loan, as is the case now. The grant will be 110.30 euros for students living at home and 274.90 euros per month for students living away from home. Due to the purchasing power measures, the latter will be temporarily increased by 164.30 euros.
5. Register for a rental property
Also register with organizations for a rental home, Van Noort recommends. “The housing market is a major challenge for young people. The longer you are registered, the more favorable it can be for you later.”
6. Subscriptions
“From the age of eighteen you are responsible for debts and you can take out subscriptions yourself,” says Van Noort. As a parent, discuss what this means and emphasize the consequences of, for example, paying late or having too little balance. “Young people sometimes don’t know what kind of subscription they are taking out and are suddenly stuck with an annual subscription unintentionally.”
Dasburg mentions the risk of delayed payment. “This is an excellent opportunity to quickly score an outfit for a party, without having to pay immediately. Young people should be aware that this is also a loan that can affect you later, just like a mobile phone on credit.”