In a recent discussion with a friend, my friend shared with me her frustration of having her 40 something grown son, his fiancé, and their children living at home with them and them not contributing to the family income. My friend and her husband are living on a fixed social security income, and even though she has many health problems, she is still expected to do the shopping the cooking, cleaning, and all of the providing for her growing extended family. Unfortunately this phenomenon of boomerang children, where adult children return home to live with their parents is exploding in the U.S. and around the world. When you send your kids off to college and expect them to launch their career and a life of their own, it is fairly disenchanting to have them return home and free load off of mom and dad.
Boomerang Children Are Financially Stressing Out Their Parents
49% of the boomerang children who move in with mom and dad do so due to financial reasons. Whether it be student loans, credit card debt, or some other hardship, living on mom and dad’s dime has become a feasible survival tactic for many young Americans. The largest age group of boomerangs is the 18-24 age, which makes up 6%. The other 48% is comprised of people 25 and up. 2/3rds of the boomerang children have paying jobs and yet do not contribute or pitch in with the financial burden of the household.
How Are Parents Responding To Their Children Moving Back In?
1/3 of the parents polled commented that they are feeling very stressed out about having their adult children living at home. 1 out of 10 is looking at a delayed retirement themselves due to the burden of supporting their children into adulthood. Yet, in spite of parental sentiment, this phenomenon is continuing to grow and extends far beyond the borders of the United States. In Italy, for example, 70% of adult children still live at home. They are called the babinoccini or “Big Babies”.
What Is Contributing To The Growing Number Of Adult Children Moving Home?
There are many speculations as to why this phenomenon is continuing to grow. Some ideas include:
-That the boomerang children are from an entitled generation. A generation that has been taught to only accept the best for them, a generation that refuses and entry level position because they are too good for it.
-That parents are too indulgent and have financially coddled their children, which has crippled their ability to make it on their own.
-The economy is stagnant and there are fewer jobs and higher unemployment making it more difficult for young adults to survive away from their parent’s home.
In all likelihood you are either in this situation or you know someone who is. If you yourself are facing a threatened retirement due to the increased burden of having adult children live with you at home; now is the time to talk to a financial advisor about your options and about what you’re future needs will be to secure your retirement. A Redhawk advisor can help direct you towards an understanding of your own financial needs, so you have a better realization of how you need to handle your adult children while still managing your own future retirement needs.