Adult kids staying at home longer, costing parents more

In the UK, nearly 25% of adults aged 20-34 live at home, according to a recent piece by the BBC. That percentage has been increasing for 15 years.

The length of time those adult children stay at home has also been increasing, along with the cost. The average stay at home is now 10 months, up from 9.7 months last year. Parents spent about £1,640 on extra costs like water and electricity, along with £1,886 on redecorating and upgrading wi-fi.

Read more: Learn my #1 tip for financial planning when adult kids move home.

Canadian census data shows (surprise!) more adult children living at home

The latest Canadian census data shows the number of adult children living with their parents is on the rise again.

As of 2016, 34.7% of adults aged 20 to 34 were living with their parents, up from 33.3% in 2011.

 

But that number varies quite a lot across the country. In Ontario, 42.1% of adults in this age range live with their parents, and in Toronto specifically, nearly half do so: 47.4%. In Quebec, on the other hand, less than a quarter of 20-to-34-year-olds live at home.

Twenty to 34 is a wide age range that includes university students all the way through established adults. Not surprisingly, more people in their early 20s live with their parents (62.6%) than do people in their early 30s (13.5%). The majority of those in their early 20s who were living with parents said they had never left home, where as most of those in their early 30s had left at some point and then returned.

Living with a parent the most common situation for 18- to 34-year olds

Research from Pew Research Center based on U.S. Census data shows that for the first time in more than 130 years, 18- to 34-year-olds are more likely to live with their parents than with a spouse or partner. In fact, living with their parents is now the most common living arrangement for adults in this age group.

Living with a parent is the most common young adult living arrangement for the first time on record

But this statistic gets most interesting when you break it down by gender. Living with their parents has been the most common living arrangement for men aged 18 to 34 since 2009 – that’s seven years of living with mom and dad being the most common situation for sons in this age group. But for now, daughters in this age group are still more likely to live with a spouse or partner than with their parents.
Young men are now more likely to live with a parent than to live with a spouse or partner; not so for women

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

globalI 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.