September 28, 2023
Thrivent conducted their second annual “Boomerang Kids Survey.” This is the phrase used when adult children move back home with their parents. The study shows 41% of parents have an adult child in their home.
Reasons provided include:
Having your adult child at home is an opportunity to discuss good financial management but parents seem uncomfortable with that idea.
The impact on the parents’ finances is significant. Parents’ savings have been compromised to the tune of 51% and 23% of parents are having difficulty paying off debt incurred supporting an adult child.
This is not a new phenomenon. During the Great Recession, three-in-ten young adults (ages 25-34) moved back home (Pew Research March 2012).
It can be a balancing act to help children get off on the right foot without inhibiting your own circumstances. Some planners worry they are “enabling” their children. There isn’t a one size fits all solution. Some suggestion include:
Realistically, you could take almost any expense(s) impacted by having more people in your home to decide who everyone can contribute to a healthy outcome.
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