Millions of people between the ages of 25 and 34 live with their parents. While many adult children return home for just a short period after college while they look for work, others come back for a variety of reasons–and often for longer stays. Divorce, unemployment, a high debt load, or a return to school are just a few of the circumstances under which your kids may decide to “boomerang” back home.
Here are some tips. Be clear about the conditions. Discuss length of stay, plans for employment, extent of financial support, and expectations for financial or in-kind contribution. If you charge rent, start out low and gradually raise it over time to give kids an incentive to get back out on their own. Write up a rental agreement spelling out the amount, when it will be raised and to how much. Or charge market rent–about 30% of take-home pay, or 40% if you include utilities–and put all or part of it away in a savings account that your child eventually can use to get her own place (a Priority First Regular Savings account is a great idea!)
It’s crucial for parents to realize they’re not doing their kids any favors by giving them a free ride forever. The goal should be to create an arrangement that both supports your children and encourages them to move on.
Talk to us about opening up a Priority First Share Draft (Checking) and/or Regular Savings account for your loved one. It’s the start to their new future.