Preparing for adult kids moving home after college

I spoke with AARP recently about how to prepare for adult children boomeranging home after college — something I did myself 17 years ago. (Still think this is a new or temporary trend?)

Here’s the key point, which I can’t emphasize enough:

The end goal, Newberry says, is not to kick them out as soon as possible but to “help them get to the point where they are ready to leave.”

You can read the rest of the article on the AARP’s website, or check out the video below for five key strategies to make the situation work. I recorded this video way back in 2009, so the audio is not the best, but it’s worth bearing with it for the important information.

The Bank of Mom and Dad

global

I spoke with Global BC reporter Rumina Daya today about a new CIBC report that shows one in four parents are spending more than $500 a month to help their adult children cover expenses such as rent, groceries and cell phone bills, and that the most common form of financial support parents provide for their adult kids is free room and board at home (71 per cent). You can see Rumina’s story on Global’s website here.

 

How to handle the finances of a child who moves back home

That’s the topic addressed by an article in the Deseret News that features my advice:

Even a modest amount of cash paid to parents every month carries a benefit beyond the merely financial, Newberry added.

“Adults have financial responsibilities, so it’s important to maintain them even if your child is living at home,” she said. “It’s good for their self-esteem.”

Read the rest at DeseretNews.com

What if the adult kids never leave?

That’s the question posed by a Globe and Mail article published yesterday that features my advice for parents whose retirement is being threatened by adult children living at home:

“A family needs to sit down ahead of time and work out a budget … look at what their existing costs are in terms of paying for their home and things like heat, electricity, insurance and food, then estimate how those costs will be impacted by having another person living at home.

“It’s easy for adult children to go in expecting that it’s not going to cost anything or to be completely unaware of what the costs are.”

Read the rest of the article on the Globe and Mail’s website

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More Canadian seniors declaring bankruptcy

New information from Statistics Canada shows that the number of Canadian seniors in declaring bankruptcy is climbing. More than 82,000 people declared bankruptcy in Canada in 2014, 10% of them seniors. That’s a substantial increase from 8.3% in 2010.

Even more worrisome, Scott Hannah of the Credit Counselling Society told CBC Radio’s BC Almanac

that the proportion of seniors among the society’s clients has increased from one in 20 fifteen years ago to one in five today. He told host Gloria Macarenko that boomerang kids are a factor in seniors’ increasing debt problems when the adult children don’t pay their fair share of the living expenses.

Canadian reporter looking for parents of boomerang kids

A reporter is looking to speak with a parent or parents of boomerang kids to find out how they have made things work, financially and otherwise, for an article in an ongoing retirement series in a major Canadian daily newspaper.

The reporter will need to use your real name, but there is no need to get into detail about financial numbers – just a sense of what agreements were in place, if any, and how you handled it more generally. [Note: I recommend you ALWAYS put an agreement in place – in writing! But the reporter would be happy to speak with you whether or not you did so.]

If you’re interested in sharing your experience, please email the reporter directly at gailjohnsonworks@gmail.com.

Delaying adulthood, changing the brain?

New research shows that delaying major life steps like moving out, getting married, and having children is actually changing the brains of young people today. According to Beatriz Luna, a professor of Psychiatry and Psychology at the University of Pittsburgh, that’s actually a good thing, because it gives the brain longer to specialize before it has to stop engaging in “novelty seeking and exploration” to start dealing with the reality of day-to-day life responsibilities. That extra time could result in brains with more “variability and plasticity.”

You can read (or listen to) the whole interview with Dr. Luna, from CBC’s Day Six program, here.

New UK statistics: 25% of adults 50+ have adult children living at home

New research by MetLife

shows that 25% of adults over 50 have children aged 18 or older living at home. Here are some of the other findings from the report:

  • 43% of adults living at home pay absolutely no rent and do not contribute financially to the household in any way
  • Parents are spending about 3,700 pounds a year (about $6,000) to feed and house their adult children living at home
  • 21% of parents lend money to adult children (an average of 2,600 pounds, or $4,200) even after they leave home

I’m a huge advocate for adult children making a financial contribution to the household when they live at home (I explain why in this video), so it’s troublesome to see once again that so many parents have adult children living at home absolutely rent-free.

Setting rules for boomerang kids: Sun News Network

Today, Sun News Network has published an in-depth article on how to prepare for boomerang kids to come home, based on my advice:

“There’s a fine line between helping and helping too much, at which point it becomes very easy for your adult child to become dependent on you and not develop the skills they need to become independent,” Christina Newberry of Vancouver says. She’s the founder of AdultChildrenLivingatHome.com and author of The Hands-On Guide to Surviving Adult Children Living at Home.

She offers these tips…

You can read the rest at Sun News Network.