(ADULT) Kids:
Living at home —
When is enough, enough?
Not a New Question
I feel like I’ve written a blog about this in the past. I know it’s been the topic of more than one conversation in our office. Yet, an article in a weekly newsletter I follow caught my eye today, “Why do half of young adults live with their parents?”
Perspective
Money With Katie, provided updated statistics and considered some reactions one might have if, by chance, you are hearing this for the first time.
What do you think — when you hear about 52% of adult children are living with their parents:
- Millennials just can’t make it without mommy and daddy?
- We have a broken system?
- It’s not true?
Pew Research Center Stats
It has been found that spikes of adult children living at home do coincide with some of the direst economic times: Great Depression, the Great Recession, and Covid-19. For example, during the pandemic adults returned home because campuses closed, jobs were lost or other financial reasons, as can be seen in this chart:
What We’ve Seen
No doubt the economy plays a role in our financial situations. The last couple of years have been hard, dealing with current expenses and inflation is hard. However, long before 2020, we served many clients struggling with a debt cycle caused by the support they provided to their adult children. It is a difficult conversation to have with a client / parent — informing them that now is enough:
- You cannot afford your own bills; it is not time to be paying someone else’s
- No! Do not take money from your retirement, you are not going to make that up.
- No! Do not take out a home equity loan, you are not going to be able to repay it.
- It is time to focus on you, your retirement, your care and your needs.
As parents we want to protect our children. Everyone will benefit, if:
- We provide a helping hand, only when available.
- Learn from and not normalize our downward spiral.
- Ask for help, as needed.