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.
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.
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.
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.
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.”
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.
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 firstname.lastname@example.org.
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 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.