Approximately 50% of 24-year-olds are living with their parents
Coming Back Home
by Steve and Annette Economides
Adult Children Returning to the Nest
A Tool to Determine the Best Time to Take Social Security Benefits
EXCERPT 7) From Page 237-239 Bailouts (445 words)
Coming Back Home
You might think your child won't ever move back home, but the statistics are telling a very different story. Whether you call them "Boomerangers" or "Kidults," adult children are returning to the roost in record numbers, and we need to be prepared with a plan and gentle, but firm limits.
Common or Rare?
The frequency of adult kids moving back home has ebbed and flowed through history, and we are currently experiencing an increase.
- Social demographer Michael Rosenfeld is quoted in Time magazine as saying, "More than 70 percent of singles in their 20s . . . lived with a parent in the 1940s."
- The New York Times reported, "In 1980, 11 percent of 25-to-34-year-olds were living in multigenerational households. By 2008, 20 percent were."
- U.S. Census data for 2009 reported that 56 percent of men ages twenty-four and 48 percent of women in the same age group live with their parents.
This issue is not isolated to the United States. In London, the Daily Telegraph reported that 28 percent of UK parents are taking drastic measures to support their eighteen- to thirty-year-old young adults. They're going as far as taking out loans or refinancing their homes to help their kids make ends meet!
What was normal and totally acceptable in the 1940s was rare in the 1980s and has now come back around. Many writers are calling adult kids who are living under their parents' roofs YUCKIES or "young unwitting costly kids" and calling their parents "baby gloomers." From our perspective, this isn't doom and gloom; it could be a real boon, if you have the room. The biggest complaints come from the adult kids saying that living with their parents changes their socialization habits and from parents, who haven't cut the purse strings and are funding their young adult's lifestyle.
There are a number of reasons that our adult kids come back home, and some of them simply aren't their fault.
- Poor financial decisions
- High cost of student loans
- Repossessed home
- Depressed job market
- Decreased income or unemployment
- Physical or mental disability
- Parents needing medical or financial assistance
If family is important to you and you're committed to helping your kids become successful, then let's take the stigma away from this scenario and see if we can apply some commonsense thinking, good communication skills, and limits to make it a winning situation for all who are involved. At the same time, we need to be watching for signs of dysfunction or abuse, where kids may be using parents and their parents' money to avoid having to be responsible.
This excerpt is from the new book, The MoneySmart Family System: Teaching Financial Independence to Children of Every Age by Steve & Annette Economides. Published by Thomas Nelson. Chapter 19, Bailouts: The $50,000 Boomerang.
Steve and Annette Economides (AmericasCheapestFamily.com) are New York Times best-selling authors and internationally recognized personal finance experts frequently interviewed in newspapers, on websites, and radio programs. They have been featured on Good Morning America, The Today Show, ABC's 20/20, Fox TV's Your Life with Neil Cavuto, The Dr. Phil Show, and in Good Housekeeping, People, and Real Simple.
To learn more super practical to raise MoneySmart kids and young adults, get Steve & Annette's book, The MoneySmart Family System: Teaching Financial Independence to Children of Every Age. Published by Thomas Nelson.
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