However, many parents are viewing this “boomerang” as an opportunity. It can allow youth to begin saving money for the future, continue a job search or to get out of debt, but only when expectations are clear and roles are known.
This is not necessarily the troubling scenario it was once thought to be and it can actually be a very productive time for both children and parents.
Twenty-five years ago, parents rarely gave advice to grown children and fewer than one in three provided hands-on help. Now, nearly 90% of parents give advice and 70% provide some type of practical assistance every month.
This type of increased financial co-dependence between parent and child can lead to strain when living together again after a separation. If you are a parent with a young adult at home, it is important to communicate what your expectations are and what their expectations are to help them build a solid financial foundation for their future.
Discuss how much he/she should contribute to household expenses. A key to making the transition easy on everyone is having clear expectations for everyone involved—both financially and otherwise.
Save time and money by seeing if your boomerang child is covered by your health and/or car insurance. Also see if you are able to claim him/her as a dependent.
Consider having them pay rent, even if it’s just a token amount. This gets the child into the habit of paying a monthly amount. Or have a set amount of money go into a saving account monthly that the child could later use for a down payment on a house or car.
While waiting to get hired, your son/daughter could consider volunteering, joining a professional organization, connecting with a networking group or participating in an internship, even if it’s unpaid. All of these things look excellent on a resume.
Make sure your savings and retirement plans remain intact. You may be tempted to use that money to assist your child. Don’t derail your own financial plans. Some parents stop paying for disability insurance and long-term care insurance. It is critical to maintain your overall financial health.
Though you may not have planned on it, helping support your child after they’ve left home can be a springboard toward a healthy financial future for them.
Just make sure that the boomerang experience remains positive and your relationship with your child remains strong.
