Podcast Title: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Episode Title: Ask KT & Suze Anything: How Much Should I Charge My Child In Rent?
Release Date: June 19, 2025
Host/Author: Suze Orman Media
Introduction & Juneteenth Celebration (00:00 - 02:32)
The episode kicks off with a vibrant celebration of Juneteenth, referred to as "America's second Independence Day," which commemorates the freedom of enslaved people in Texas in 1865. KT shares historical insights, emphasizing the significance of the day and encouraging listeners to enjoy the festivities.
KT (01:36): "Juneteenth is a federal holiday for those of you that may not know. And it's really, really important."
Listener Question 1: Maximizing 401(k) Contributions (03:04 - 06:56)
Paul, a listener in his early 40s, inquires about the optimal allocation of his retirement savings. Having reached a milestone where his annual 401(k) returns equal or exceed his contributions, Paul seeks advice on whether to redirect his funds for greater impact.
Suze Orman's Response: Suze explains the power of compounding and recommends transitioning to a Roth 401(k) or Roth IRA to maximize tax-free growth. She advises against real estate investments due to current market uncertainties and underscores the superiority of the stock market for hassle-free returns.
Suze Orman (05:02): "There isn't a better investment out there than a Roth retirement account. I would not be doing real estate right now."
Listener Question 2: Charging Rent to Adult Children (06:56 - 18:17)
Keela presents a common dilemma faced by many parents: determining appropriate rent for her 22-year-old daughter and her boyfriend, who are experiencing financial difficulties. Keela, a divorced mother with a substantial income but existing debts, seeks guidance on setting boundaries without enabling irresponsible spending.
Suze Orman's Response: Suze assesses Keela's financial situation critically, highlighting the lack of an emergency fund and questioning the financial viability of Keela's daughter and her boyfriend. She emphasizes the importance of financial responsibility and suggests charging a reasonable rent ($700/month) to instill accountability. Additionally, Suze recommends establishing a family agreement outlining responsibilities and financial expectations.
Suze Orman (09:40): "You need to have a discussion with your son and see if he feels okay about it. Number two, here's how I would do it. I would be charging them $700 a month."
Suze also introduces the Women and Money Community App, where listeners can access templates for family agreements to formalize such arrangements.
Listener Question 3: Impact of Retirement on FICO Score (28:59 - 30:03)
Sean shares his experience of maintaining an impressive FICO score post-retirement, despite having no current income. He asks whether it's advisable to place a new car loan solely in his husband’s name to preserve his credit score.
Suze Orman's Response: Suze commends Sean for his excellent credit management but explains that lenders prioritize income stability over credit scores when issuing loans. Thus, she supports the idea of placing the loan in her husband's name, as his income will be the primary factor in loan approval.
Suze Orman (29:39): "Nobody's going to lend you money simply because you have a great FICO score. What they want to see is that you have the income to pay them back."
Listener Question 4: Transferring Funds Overseas (30:22 - 31:47)
Marie, a dual U.S.-Belgium citizen aged 69, seeks advice on the most economical method to transfer the proceeds from her house sale to Belgium. Concerned about unfavorable exchange rates and hefty transfer fees, Marie wants to maximize the amount received overseas.
Suze Orman's Response: Suze advises against traditional banks and credit unions due to significant exchange rate losses. She recommends using specialized financial services like Revolut for competitive rates on smaller transfers and Wise (formerly TransferWise) for larger amounts, which offer real mid-market rates with transparent, low fees.
Suze Orman (30:49): "Look into those two things and maybe you should wait just a little bit to see if our dollar gets stronger, which it should be right now, but it's not."
Must-Have Financial Documents (22:43 - 28:59)
Suze addresses questions related to Must-Have Documents essential for financial and personal protection. She clarifies that sharing these documents does not compromise personal information, as each individual must create their own secure account.
Susan's Inquiry: Susan seeks clarification on whether family members can use her Must-Have Documents.
Suze Orman's Explanation: Suze emphasizes the importance of having legal documents like wills, trusts, and power of attorney to protect families. She highlights that the Must Have Documents can be shared via activation codes, allowing loved ones to set up their own accounts without accessing Susan's personal information.
Suze Orman (25:33): "It just gives them access to the program. It does not give them access at all to your information what you put in on any level."
Elba's Inquiry: Elba asks about the essential documents parents should have for their 18-year-old children.
Suze Orman's Advice: Suze stresses that once individuals turn 18, parents can no longer make legal decisions for them. She recommends that parents obtain advanced directives and durable power of attorney for healthcare for their adult children to ensure their wishes are respected in medical situations.
Suze Orman (25:53): "You cannot make legal decisions for them at all. So an advanced directive and durable power of attorney for health care is essential."
Suze promotes the Ultimate Protection Pack for 18 Plus, available on the Women and Money Community App, to help parents secure these crucial documents for their adult children.
Final Listener Question: Selling House and Moving Overseas (30:03 - 31:47)
Marie inquires about the best method to transfer funds from her house sale to Belgium, considering unfavorable exchange rates and wanting to maximize the received amount.
Suze Orman's Final Recommendations: Suze reiterates the use of Revolut and Wise for their favorable exchange rates and low fees. She advises Marie to consider timing her transfer to benefit from a stronger dollar if possible.
Suze Orman (30:49): "For large international transfers because it uses what's called the real mid market exchange rate, which is totally transparent and they have a low fee."
Additional Resources & Closing Remarks (32:52 - 34:53)
Suze encourages listeners to engage with her content on YouTube and the Women and Money Community App for further financial guidance and resources. She promotes tools like the Ultimate Opportunity Savings Account with attractive interest rates and incentives.
Suze Orman (34:16): "Enter at least $100 a month every single month for 12 consecutive months. Earn 3.10% interest on your money right now and get $100 at the end."
The episode concludes with a standard disclaimer emphasizing that Suze Orman Media does not provide personalized financial, accounting, or legal advice.
Key Takeaways
- Maximize Retirement Savings: Transitioning to Roth accounts can offer significant tax-free growth benefits.
- Instill Financial Responsibility: Charging fair rent and setting clear financial expectations can help adult children become financially independent.
- Maintain Credit Health: While a high FICO score is beneficial, lenders prioritize income stability when approving loans.
- Efficient International Transfers: Using specialized services like Revolut and Wise can minimize losses due to unfavorable exchange rates.
- Essential Legal Documents: Having wills, trusts, and power of attorney documents is crucial for protecting oneself and family members.
For more insights and personalized advice, listeners are encouraged to download the Women & Money App and join the community for ongoing support and resources.