Returning Home: How Adult Children Moving Back Can Be Helpful
At the current moment, we’re in a recession that has left millions of people without employment, and millions more searching for ways to save money and cut down on costs. As more people lose their jobs, those with less experience will find the most difficulty, leaving younger workers and recent college graduates being hit especially hard. This could lead to a number of young people moving back in with their parents, at least until they can find a job, or another job and clean up their finances. For the parents whose children return to live with them, the situation has changed drastically from when their kids were younger. Re-adjustment will most likely be necessary for both parents and children to live together again. But, the situation can serve to benefit both parties if it is done right. According to the Census Bureau, in 2008, one in eight Americans between the ages of twenty five and thirty four were living with their parents. That’s about five million young adults. While some hadn’t moved out of the house for the first time yet, others had returned home until they could get back on their feet. Whatever the circumstances may be, parents should lay down some healthy guidelines with their adult children, especially when it comes to finance. Here is an opportunity for parents who might not have taught fiscal responsibility to their children when they were younger to help foster responsible spending habits as adults. The most obvious way that parents of adult children who live at home to help out is to charge them lower rent, or maybe to put part of their rent into a savings account for them. Then, when their kids get on their feet and are ready to move out, this money can be given back to them to help them get re-established. Also, now would be a good time for adult children to tackle their debt while they are under their parents’ roof. Take this example: a child wants to move back in with her parents after getting laid off from her job and has substantial credit card debt. If rent in their area goes for about $750 a month, the parents can make the decision to charge their daughter $500 a month in rent to help her save money. As extra incentive, they tell her that they will put aside half of this amount every month if the daughter uses the $250 savings to pay down her credit card balance. That way, the daughter has the opportunity to pay off her debt, save money, and the parents get some money too. Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. |