July 2008
Return of the ‘boomerang’ children
Just when you were getting used to your empty nest, they’re back. For any number of reasons—a tight job market, low salaries
for entry-level jobs, high rent, student loan debt, or divorce—your children are knocking on the door, suitcases in hand.
According to a 2007 survey by MonsterTrak, 48 percent of college graduates planned to “boomerang,” spending at least some time living back at home, the same percentage as in 2006. Nearly half of that group expected to live at home for longer than six months. The rest said they planned to move out quickly, but even they might be home longer than expected; 42 percent of 2006 grads were still living with their parents.
So your children’s return to the nest is a real possibility, and one you should plan for. You and your spouse should decide beforehand whether it’s OK for the kids to come back home, and what the ground rules will be. For starters, you’ll want a clear sense of the extent of your child’s financial problems and the root causes. Is he or she unemployed because of a layoff or because of laziness? Does your child have a history of financial problems, or is this situation unusual?
Put all your expectations in writing: how long they will be allowed to stay, what you will and won’t provide, what their financial contribution will be, and rules regarding overnight visitors, chores, and more. “Derail the gravy train,” says Joseph Montanaro, a certified financial planner with USAA in San Antonio, Texas. “You don’t want being back at home to be a financial windfall for your children. Otherwise they may look to extend their stay.”
If you don’t want to charge your children even a small amount for rent, consider requiring them to put an equivalent amount each month into a “moving-out” account, says Cathy Pareto, a certified financial planner in Coral Gables, Fla. That will teach them financial responsibility, which they’ll need if they ever expect to make it on their own.
According to a 2007 survey by MonsterTrak, 48 percent of college graduates planned to “boomerang,” spending at least some time living back at home, the same percentage as in 2006. Nearly half of that group expected to live at home for longer than six months. The rest said they planned to move out quickly, but even they might be home longer than expected; 42 percent of 2006 grads were still living with their parents.
So your children’s return to the nest is a real possibility, and one you should plan for. You and your spouse should decide beforehand whether it’s OK for the kids to come back home, and what the ground rules will be. For starters, you’ll want a clear sense of the extent of your child’s financial problems and the root causes. Is he or she unemployed because of a layoff or because of laziness? Does your child have a history of financial problems, or is this situation unusual?
Put all your expectations in writing: how long they will be allowed to stay, what you will and won’t provide, what their financial contribution will be, and rules regarding overnight visitors, chores, and more. “Derail the gravy train,” says Joseph Montanaro, a certified financial planner with USAA in San Antonio, Texas. “You don’t want being back at home to be a financial windfall for your children. Otherwise they may look to extend their stay.”
If you don’t want to charge your children even a small amount for rent, consider requiring them to put an equivalent amount each month into a “moving-out” account, says Cathy Pareto, a certified financial planner in Coral Gables, Fla. That will teach them financial responsibility, which they’ll need if they ever expect to make it on their own.
