Poll: 40% of parents have an adult child living with them
By CNBCthe Prosperous poll, conducted in partnership with data intelligence firm Morning Consult, found that around 40% of parents said they currently have an adult child living with them. Additionally, a quarter of parents said they had an adult child living with them temporarily and had since moved on.
Thrivent pointed out that during the peak of the pandemic, a analysis by the Pew Research Center showed that 52% of young adults, also known as “boomerang children”, moved in with their parents.
“Economic conditions, coupled with the current graduation season, are contributing to the tendency of young adults to return to their parents. In fact, when asked why their child had moved back in with them, parents surveyed said it was due to rising rent/house prices (33%), the need for additional financial support after graduation from college or high school (26%) and job loss. (17%),” writes Thrivent.
“Of adult children surveyed who said they returned to live with their parents, 33% say the reason is that they are not financially independent and cannot yet live on their own and 28% are trying to save money to buying a house,” he continues. .
Boone Jackson, a Thrivent financial consultant based in St. Louis, Missouri, agrees that a thoughtful approach is needed when parents decide to support their adult children.
“You’ve already invested a lot in their development, but maybe they need a little more help to fend for themselves in the long run, and that’s fine,” he said in a statement. communicated. Release.
“It’s important to have a mutually agreed plan. Instead of allowing them a free ride, you can instead be an advocate and mentor, teaching them how to foster their own financial growth. For example, you can help with research on getting loans, instead of taking out the loan on their behalf,” he added.
The survey further revealed that around 70% of parents do not discuss finances or set financial expectations with their children. In addition, about 90% of parents do not have a fixed schedule for how long the children will stay at home.
“Parents don’t tell their kids about it, which means they’re allowing their kids to have potentially bad financial outcomes in the future,” said Nikki Sorum, senior vice president of Thrivent Advisors, based in Minneapolis. CNBC.
A separate study survey by Savings.com found that half of parents with adult children provide them with at least some financial support. In addition, 62% of adult children living at home do not contribute to household expenses at all.
Ethen Kim Lieser is a Washington State-based finance and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.