Moving Back to Your Parents’ House
Moving back in with your parents to save money is nothing new. The new twist is that some middle-aged adults are the ones making the move back home.
The phenomenon was detailed in this recent article. While these adults may not be the recent college graduates that often live with their parents to get a clean start, their reasons for the move are the same: lack of money.
With a lagging economy, softening job security, and people continuing to live beyond their means, some people are left with few other options than returning to the care of their parents. While the financial benefits of living with your parents may be great for you, it is likely putting a strain on their finances. Every dollar they spend to support you is one that they cannot spend on themselves in retirement. Many parents would never turn away a child in need, and that is understandable. In fact, it may be that poorly educating their children about money is one of the reasons why the “kids” are in financial trouble to begin with. Financial support should have its limits though, and should be temporary in nature.
Seeing this trend of middle-aged adults returning home should also serve as a reminder of the importance of saving for your retirement. People who plan to receive support from their grown children may be in big trouble. While most people would like to help their parents, or children, poor financial health makes either type of help difficult if not impossible. Helping others is admirable but should only be done if it truly helps the person in need, rather than enable their poor habits to continue.
Saturday, April 12th, 2008 at 8:50 am