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