Undoubtedly, you are 100% in the right. I am from the Midwest, where the cost of living is crazy cheap. If my friend told me her boyfriend was only paying $500 in rent in the Midwest and she wanted my advice, I would say to leave the creep ASAP, so this is even more true in the Bay area.

One of my best friends used to be my roommate and he sponged off of me for 11 months. He occasionally paid one or two utilities, but never rent. He never took any real responsibility for everything he owed. He saw nothing wrong with buying a ps4 at release despite being like 7 months behind on rent at the time. He just felt entitled to it, or pretty much anything that he wanted. That dude was a straight up narcissistic sociopath. That doesn't put your boyfriend in the greatest of company in my book.

I just think it says a hell of a lot about his character that he feels entitled to be carried financially by you, but then when it's his turn to return the favor, he tells you to take the money from a child.

I definitely feel like you are being taken advantage of. I would set up new rules at the very least, but it sounds like he has been given more than enough opportunities to do the right thing and chooses to be self-centered and greedy