Between rising home prices and soaring inflation, many adults are moving back in with their parents.
“About 18% of adults 25-34 have moved back home with parents, and that’s a number that has been increasing over the years,” Consumer analyst Lisa W. Miller tells KTRH News.
According to a study by financial services company Thrivent, 40% of parents reported they have an adult child living with them. 25% said an adult child lived with them temporarily, but has since moved out. Of the parents surveyed, most said the reason their child moved back home was because they couldn't afford rent or increased home prices.
The study also found this is having a negative impact on some parents' financial goals. Thirty-five-percent said having their kids return home affected their ability to save for long-term goals.
“At some point you really do need to just cut the cord,” Miller adds. “You don’t want to get sucked into the guilt of thinking that my child is struggling financially and I have to help them. No.” Miller says the first order of business is establishing rules, like how long this arrangement is going to last. It’s about how to support a growing adult into accepting independence. She says with shared rules in place as required by parents their adult children may find the invasion of privacy incentive to get back out on their own.
Over a quarter of parents said it affected their short-term goals or paying off debt.
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