In recent years, a growing number of young adults have joined the boomerang generation. According to Pew Research Center – 29% of adult kids aged 25 to 34 find themselves moving back in with their parent(s). This is due in part to a stressed economy and tight job market. The quest for independence with this generation may have to rely on a little help from the previous generation.
Your child has been away at college for the past four years and they were hoping to be independent after graduation. However, for many, that does not happen. As parents, we tend to welcome the chance to help provide a safe haven for our children. This is not an unreasonable act, but keep in mind the emotional and financial implications that accompany this living arrangement. There may be some negative effects as well as positive – it’s up to the parents to set up proper boundaries.
Setting the boundaries:
·Discuss your expectations and give them a time frame in which to secure a job and make other living arrangements. Remember your ultimate goal as a parent is to help assist in their independence.
·Some form of contribution should be expected whether it is rent or services. This will not only ease your burden but help prepare the boomerang to live an independent life.
·Set specific house rules regarding guests, dinner arrangements, noise levels, and common courtesy when coming home late at night or spending the night at other locations.
·Do not bail them out — instead offer a loan to be paid back in full at a reduced rate of interest on a specific agreed-upon date.
·Do not sacrifice your own financial future but provide only what you can afford. Remember your child has decades to build financial security, where you may be very close to retirement.
Make this time a positive experience. By keeping these agreements, you and your child will learn healthy boundaries and will grow to respect one another as strong, independent adults.
No Individual should assume that any information presented or made available on or through this website should be construed as personalized financial planning or investment advice. Personalized financial planning and investment advice can only be rendered after engagement of the firm for services, execution of the required documentation, and receipt of required disclosures. Please contact the firm for further information.
“Ranking and/or recognition by unaffiliated ratings services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if the firm is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of the firm by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information voluntarily submitted, prepared and submitted by the recognized adviser.”
“Zuraw Financial Advisors, LLC (“Zuraw”) does not recommend and/or endorse advertising linked to Zuraw’s website or blog posts (WomenMoneyandDivorce.com or ChicksChatandChange.com). Nor does Zuraw make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to the Zuraw website or incorporated herein and takes no responsibility, therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Zuraw may receive compensation from third parties to advertise on the firm’s website and blogs. Zuraw does not share client’s personal information with any third parties, either affiliated or non-affiliated with Zuraw.”