Boomerang kids continue to fill up parents' nests
It's no secret that today's young adults study longer, marry later, and earn their own keep more slowly than the previous generation. And when they do eventually leave, they come back -- sometimes more than once -- after university, between jobs, or after a divorce.
Still, it’s a bit surprising to hear that almost two thirds of parents are providing support to their adult children, ranging in age from 18 to 39, according to a National Endowment for Financial Education study.
Not wanting to see their children struggle, the bulk of parental assistance extends to housing, living expenses and transportation costs. Although some concerned parents are also offering assistance for insurance coverage and medical bills.
According to NEFE, here’s how the family wealth transfer breaks down:
- 50 per cent are providing housing
- 48 per cent are helping with living expenses
- 41 per cent are aiding with transportation costs
- 35 per cent are providing insurance coverage
- 29 per cent are handing out spending money
- 28 per cent are helping with medical bills
For some parents, however, this means considerable sacrifice as they give up privacy, face delayed retirements and take on more debt while at the same time not allowing their kids to grow too comfortable under the family roof.
*Bing: At what age should kids be leaving home?
Thirty percent say they have much less privacy since their adult children moved back home; 26 per cent have taken on additional debt; 13 per cent have held off on buying a home or taking a vacation; and 7 per cent have delayed retirement.
It’s not completely a one-way street, however. More than half of these boomerang kids are chipping in money for groceries, putting gas in the family car or paying the cable bill. Roughly 42 per cent are contributing in non-financial ways as well, such as cooking or cleaning, or taking care of younger siblings.
Any of this sound familiar? Has an adult child moving back home had an impact on your financial life? Positive or negative?
By Gordon Powers, MSN Money
Posted by: SP | Dec 31, 2021 4:52:39 PM
And our 'Dear Leaders' in their infinte wisedom cannot see this becoming a massive problem as the parents reach retirement age? We abandon our future (our children) at our own peril. This is not a problem that will just 'go away'.
Posted by: Steve | Jan 1, 2022 1:41:18 PM
If the western world keeps allowing massive immigration, it's no wonder these kids have to rely on their parents when things get tough. Housing prices are insane, too many people out of work, and we spend literally trillions of tax payers dollars on foreign intervention. And, a lot of the younger generation have no concept of saving for a "Rainy Day"... they want to drive new cars, vacation in other countries, have all the latest hi-tech toys. Wake up! The streets are not paved with gold.
Posted by: Chad | Jan 1, 2022 5:28:26 PM
I agree with Steve. Massive immigration to the Greater Toronto Area has driven house prices to astronomical levels. It is common to see families of 10 immigrants purchase a house for $600,000 and all live in it together. There are many of these situations around here making for inflated house prices because they will pay whatever price is listed; often driving up the prices through bidding wars. My fiancée and I are currently living with her parents in an attempt to save for a decent down payment on a house after we get married. Together we make close to $100,000 per year and can barely afford to purchase a home in this region without having to commute >1 hour to work every day. Gone are the days of being able to live where you work and have a decent lifestyle.
It is virtually impossible for a single person to purchase a home these days, making for increasing situations of people returning home to live with their parents. If the government does not step in and do something about this, an entirely new set of problems will arise due to many seniors becoming destitute themselves after spending their retirement savings to help their children.
Posted by: megg | Jan 2, 2022 12:50:52 AM
Why wouldn't you post my comments written 3 min ago?
Posted by: megg | Jan 2, 2022 12:57:51 AM
PLAN! PLAN! PLAN! Plan what you want to do when you're 25, 30, 33...
Get ready- further your education, SAVE, SAVE, SAVE!
Don't marry until you CAN afford a decent down payment on a house, and you won't qualify by clerking...
DELAY marriage, DELAY family, DELAY buying a top-of-the-line-house!
Maybe you won't have a family- I didn't- and no grown child will crowd me out of my house....
Posted by: Raven | Jan 3, 2022 3:25:37 PM
I weep for the future as it seems many younger people are slow to mature into adulthood. When all the basics are taken for granted they cannot or will not plan nor save to leave home.
People help financially to get them started, more so a frustrated attempt to open their eyes to the real world! Best to avoid co-signing loans or being the landlord. Downsize your own home as to discourage returns.
Unfortunately the overly politically correct school system adds to the lack of maturity. Everyone cannot win the race, scores do count as does the bank statement at month's end. Passing kids through the cracks in the education system amplifies failure later in life.
Posted by: Dave | Jan 4, 2022 8:13:06 AM
If you and your family emmigrated to a new country and lived 10 to a house when you were starting out, would you want your taxes in 15 or 20 years to go up so that the locals who aren't living with their families could have care provided for them by the government? The day will come when the bulk of the people paying taxes won't see themselves in the retirees faces and will say 'forget paying these increased taxes', we're voting right of Harper.
Posted by: Dana | Jan 5, 2022 12:42:58 PM
Immigration is not the reason young people can't get jobs. The baby boomer generation is so much larger compared to gen y. The jobs that need to be filled can't be filled by new grads. They must be filled by people with experience. Canada can't keep up with all of the jobs we have to offer, we MUST hire foreign workers to keep our economy where it's at.
You have no idea the struggles of immigrating to a new country. If you left Canada to live somewhere else, would you be prepared to leave your children, your wife, your elderly parents to fend for themselves? Of course not. These immigrants can't afford three houses for their whole family that's why they all live together. I think it's ridiculous for anyone to blame this on immigration.
Also, everyone keeps talking about how spoiled this generation is. How they can't live without their toys and their vacations. Well hello! That's what they grew up with. Trips to Hawaii and Disneyland every year, designer clothes, meals out. They're spoiled because they were RAISED spoiled. And that would be the Boomer generations fault. If mom and dad want an empty nest, it's time to cut the strings, and tell them to get out. They'll learn to live with less pretty quickly.