When Adult Children Move Back Home

More adult children are moving back in with their parents. This trend is known as “boomerang children.”

It is changing family life and finances. High housing costs, inflation, and growing student debt drive this situation.

It can offer a needed safety net for the child. However, it can also create challenges for the household. The following tips can help you support your children while maintaining healthy boundaries.

Establish Clear Expectations

One of the most significant challenges of welcoming adult children back home is setting boundaries. Many parents avoid conversations about financial contributions, but doing so can lead to misunderstandings, dependency, and strain.

●      Create a Financial Agreement: Collaborate on an agreement that outlines their expected financial contributions. You can decide not to charge them rent. You hope they save enough money to move out one day. However, asking them to help with food and utilities may create a sense of responsibility.

●      Be Clear on Household Responsibilities: Most kids don’t go off to college and come back mysteriously proactive in cleaning, laundry, and other household chores. At the very least, expect them to take care of themselves. You might also give them other tasks. These tasks can include lawn care, making dinner, washing dishes, or taking out the garbage. 

●      Define a Timeline: Set clear goals for what comes next. This includes finding a full-time job or paying off debt. Also, choose a realistic date to move out. This is hard to do, but you may find that setting boundaries from the onset is easier than having tougher conversations down the road.

Teach Financial Independence

Living at home can serve as a valuable opportunity to teach financial lessons that might not have landed when they were in high school. Use this time to help your children learn money management skills, and be sure to enlist your financial advisor as needed. An outside voice can sometimes resonate when a parental voice does not. This is a great time to tackle: 

●      Budgeting: Help your child map out their income and expenses, determine wants vs needs, and how to live within their means.

●      Debt Repayment: If you have student loans or credit card debt, make a realistic repayment plan together. Focus on paying off high-interest debt first.

●      Saving: Encourage your child to save a percentage of their income for future housing, emergencies, or long-term goals. Talk about the time value of money concept and the importance of saving early.

Schedule regular check-ins to discuss progress on financial goals, career plans, and their timeline for moving out. Use these conversations to celebrate milestones and reassess goals if circumstances change.

Bottom Line

Helping your adult children in a tough economy shows love. However, it works best with clear boundaries and shared responsibility. Parents can help their children become independent by setting clear expectations. This support aids their transition to self-sufficiency and keeps the household balanced.

Sources:

https://fortune.com/well/article/adult-child-moving-back-home-with-parents-tips-to-manage/

Disclosure:

 This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.

 Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.