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Economic Times
09-07-2025
- Business
- Economic Times
Boomerang kids in 2025: how adult children are impacting parental finances
TIL Creatives Adult children, or boomerang kids, are returning home in record numbers in 2025, placing financial pressure on parents who are adjusting household budgets, healthcare coverage, and retirement plans (AI generated image) Who are Boomerang kids and why are they returning home? Boomerang kids are young adults who move back in with their parents after a period of living independently. In 2025, this trend continues to grow. According to the 2025 Boomerang Kids Survey, 46 per cent of parents report that their adult children, aged 18–35, have returned to live at home. Economic hardships such as student loan debt, rising housing costs, and unstable employment are contributing factors. Social acceptance of intergenerational living also plays a role. Housing affordability remains the leading reason for this return. The survey found that 32 per cent of respondents cited the cost of housing as the main reason their adult child moved back home. Student loan burdens are also significant. As of 2024, the average federal student loan debt was $37,853 per borrower, according to the Education Data Initiative. Wage stagnation, particularly among young adults without college degrees, and volatility in the job market are further influencing this pattern. Also read: Gen Z's Financial Habits: Rising Spending, Shrinking Savings, and Future Impact Life events that drive Boomerang kids back home Major life changes often trigger a return to the parental home. Divorce or separation is the second most common reason, reported by 20 per cent of boomerang parents. Other events include job loss, medical issues, or transitions such as returning to school. These situations can disrupt financial stability, making shared housing a temporary return is not always rooted in financial distress. Career changes or further education can lead young adults to choose a living arrangement that reduces expenses. The cultural stigma of living at home as an adult has also diminished. According to a 2023 Pew Research study, 74 per cent of parents said the experience of having an adult child living with them had a somewhat or very positive read: $5,000 'DOGE dividend' checks: Who qualifies and will it really happen? Financial pressures on parents supporting adult children Parents of boomerang kids often face financial strain due to increased household expenses. These include higher costs for groceries, utilities, internet, and other day-to-day essentials. Some families opt to create cost-sharing arrangements, with adult children contributing financially or providing household labor if unemployed or underemployed.'Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,' said Alex Gonzalez, a Thrivent Financial Advisor. 'With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.'The 2025 Boomerang Kids Survey found that 38 per cent of parents said their long-term savings, including retirement contributions, had been impacted by the return of adult children. Another 39 per cent said their short-term financial goals, such as saving for vacations or home renovations, were also affected. Health insurance and retirement: long-term considerations Adult children moving home may also require assistance with health insurance. Parents may add children under age 26 to their own workplace or ACA plans, often at a modest additional premium. In some cases, adult children may qualify for marketplace subsidies or Medicaid, depending on income and life adult children should not derail retirement savings. Gonzalez advises that older adults prioritize their financial futures even while assisting their children. 'As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they're not sacrificing their future goals for an immediate need,' he said. Also read: Canada job crisis: Gen Z left jobless and drifting as youth unemployment skyrockets to highest in 25 years Families are encouraged to set boundaries and expectations early. Financial planning with a professional can ensure the arrangement remains sustainable and aligned with both the parents' and adult child's goals.
Time of India
04-07-2025
- Business
- Time of India
Boomerang kids in 2025: how adult children are impacting parental finances
Who are Boomerang kids and why are they returning home? Boomerang kids are young adults who move back in with their parents after a period of living independently. In 2025, this trend continues to grow. According to the 2025 Boomerang Kids Survey, 46 per cent of parents report that their adult children, aged 18–35, have returned to live at home. Economic hardships such as student loan debt , rising housing costs , and unstable employment are contributing factors. Social acceptance of intergenerational living also plays a role. Housing affordability remains the leading reason for this return. The survey found that 32 per cent of respondents cited the cost of housing as the main reason their adult child moved back home. Student loan burdens are also significant. As of 2024, the average federal student loan debt was $37,853 per borrower, according to the Education Data Initiative. Wage stagnation, particularly among young adults without college degrees, and volatility in the job market are further influencing this pattern. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Uttar Pradesh Mosquito-Free Nights: Residents Share Unexpected Secret Mosquito Eliminator Read More Undo Also read: Gen Z's Financial Habits: Rising Spending, Shrinking Savings, and Future Impact Life events that drive Boomerang kids back home Live Events Major life changes often trigger a return to the parental home. Divorce or separation is the second most common reason, reported by 20 per cent of boomerang parents. Other events include job loss, medical issues, or transitions such as returning to school. These situations can disrupt financial stability, making shared housing a temporary necessity. The return is not always rooted in financial distress. Career changes or further education can lead young adults to choose a living arrangement that reduces expenses. The cultural stigma of living at home as an adult has also diminished. According to a 2023 Pew Research study, 74 per cent of parents said the experience of having an adult child living with them had a somewhat or very positive impact. Also read: $5,000 'DOGE dividend' checks: Who qualifies and will it really happen? Financial pressures on parents supporting adult children Parents of boomerang kids often face financial strain due to increased household expenses. These include higher costs for groceries, utilities, internet, and other day-to-day essentials. Some families opt to create cost-sharing arrangements, with adult children contributing financially or providing household labor if unemployed or underemployed. 'Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,' said Alex Gonzalez, a Thrivent Financial Advisor. 'With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.' The 2025 Boomerang Kids Survey found that 38 per cent of parents said their long-term savings, including retirement contributions, had been impacted by the return of adult children. Another 39 per cent said their short-term financial goals, such as saving for vacations or home renovations, were also affected. Health insurance and retirement: long-term considerations Adult children moving home may also require assistance with health insurance. Parents may add children under age 26 to their own workplace or ACA plans, often at a modest additional premium. In some cases, adult children may qualify for marketplace subsidies or Medicaid, depending on income and life circumstances. Supporting adult children should not derail retirement savings. Gonzalez advises that older adults prioritize their financial futures even while assisting their children. 'As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they're not sacrificing their future goals for an immediate need,' he said. Also read: Canada job crisis: Gen Z left jobless and drifting as youth unemployment skyrockets to highest in 25 years Families are encouraged to set boundaries and expectations early. Financial planning with a professional can ensure the arrangement remains sustainable and aligned with both the parents' and adult child's goals.
Forbes
01-07-2025
- Business
- Forbes
Are Your Adult Children Moving Back Home? Here's How To Make It Work
Due to financial pressures and personal events, 46% of parents say their adult children have moved back home. Here's how to navigate the potential 'boomerang burden.' Financial pressures are forcing many adult children to 'boomerang' back home It's a financially challenging time to be a young adult. In a recent 10-country survey of more than 10,000 young people aged 18–34, EY found that 87% desire financial independence and 60% still live with their parents. Separately, Intuit's 2025 Prosperity Index found that the cost of living is the biggest money stressor for young people, worrying 97% of respondents. Sixty percent would feel more confident if they had more financial education, but it wasn't covered in school. Nor is it just young people feeling the strain. Recently, Thrivent's Boomerang Kids Survey indicates that parents are more likely than ever to provide temporary support. Fully 46% of parents said their adult children have moved back home, potentially creating a 'Boomerang Burden' with long-term financial consequences. 'For most parents, allowing their children to move back home is about love and support—but that generosity can come at a cost,' says Alex Gonzalez, Thrivent Financial Advisor. 'Thrivent's survey found that nearly four in 10 parents providing short-term support to adult children report it's impacting their long-term savings goals—like retirement—and short-term savings goals—like vacations.' Gonzalez, whose own three adult children have boomeranged back home, has some advice for surviving and thriving through a potentially challenging time for everyone involved. Here's what we covered. The financial punch The biggest reason young adults are moving back in with their parents is economic. 'Housing costs are still the number one reason adult kids are moving back home—32% say it's the main driver,' says Gonzalez. 'However, this is notably down from 50% in 2024, likely thanks to rent prices cooling off a bit.' But housing isn't the only challenge. The rising cost of everyday essentials is hitting many young workers hard (30%). Another significant factor is personal events, such as divorce and separation (20%). Thrivent found that for many parents, supporting adult children has a negative effect on their long-term savings goals like retirement (38%) and short-term saving goals like vacations (39%). Amid current economic pressures, many parents (almost 45%) have either withdrawn or scaled back financial assistance to their children. Opening the door For those opening the door to their adult children, strong communication is a big factor in a successful move-back. 'It's cliché, but communication is key,' says Gonzalez. 'Concerningly, Thrivent's survey found that 60% of young adults say their parents have not discussed the financial impact of supporting them a second time.' Staying quiet on this issue can be a huge mistake, he warns. 'Not only does it potentially strain parents' finances, but it can also hold young adults back, leaving them unprepared to manage money on their own long-term.' 'Before your child moves back home, have a candid conversation about expectations,' says Gonzalez. 'Will they chip in for utilities or the internet? Or will they live rent-free with the understanding that those funds go into savings each month? 'Being upfront from the start helps avoid confusion later—and ensures you're not just offering short-term care and support, but helping set them up for long-term success.' Being there in the transition period Gonzalez, whose three adult children have moved back in and out again, stresses that he and his wife were intentional about framing it as a transitional phase. 'It was a proactive step forward rather than a fallback,' he says. 'We didn't charge them rent in the traditional sense. Instead, we asked them to allocate that same amount of money into a dedicated savings account earmarked for a future home purchase. 'This approach gave them structure and a sense of financial purpose. It also helped them visualize a clear path toward independence.' Being there for your adult children in the transition phase of their life journey should be about more than providing financial support. Your child may also need to enhance their financial literacy. Thrivent found that while 63% of children who never returned home received an A or B grade on their budgeting skills, only 46% of 'boomerang kids' received good marks. 'That deficit of financial knowledge is significant,' says Gonzalez. 'From my experience, it's clear that temporary financial support is just the start. What really moves the needle is teaching the principles behind the support—how to save, how to budget, and how to plan ahead.' When Gonzalez's kids moved back home, he didn't just give them a place to live—he gave them tools to succeed, including: Today, says Gonzalez, his children are fully employed, contributing to retirement accounts, managing their own health insurance and phone bills and saving with purpose. 'That's not an accident; it's the result of deliberate conversations and expectations.' Enjoying your boomerang kids Can you enjoy having your kids home again, even if it's due to necessity? Yes—and setting expectations for all parties at the start can go a long way toward making the experience enjoyable for everyone. 'Every family is different, so it's important to consider your unique situation when setting ground rules,' says Gonzalez. 'When adult children move back home, chances are, the bills will go up. Figure out a way to share costs for little things like laundry detergent, streaming services, or snacks.' It may also be helpful to lean on a financial advisor, he says. 'They can help you navigate the situation and understand the tradeoffs between your long-term financial goals and the short-term support you want to provide your children.' One thing Gonzalez often shares with his clients in this situation is that while having adult children move back home may not have been in the original plan, it can be an incredibly special time. 'Make the most of it by having a few weeknight dinners together or finding a show everyone likes,' he says. 'Before you know it, they'll be moving back out again.'
Miami Herald
27-06-2025
- Business
- Miami Herald
The post-grad playbook: How new graduates can prep their finances for success, even in a rough economy
The post-grad playbook: How new graduates can prep their finances for success, even in a rough economy As this year's new college grads receive their sheepskins and throw their caps into the air, jubilation can turn very quickly to trepidation. That's because they are entering the most challenging job market for entry-level employees in years. Current, a consumer fintech banking platform, shares financial tips for new graduates as they navigate a challenging economy. The labor market for new grads "deteriorated noticeably" in the year's first quarter, says the Federal Reserve Bank of New York, with that group's unemployment rate jumping to 5.8%. That's the highest level since the pandemic was at full force back in 2021. Meanwhile, sky-high housing costs mean that young adults often don't have the ability to strike out on their own quite yet. The result: 46% of parents report their adult children (aged 18-35) moving back home, according to a March 2025 study from financial services firm Thrivent. "Housing affordability is a big factor here," says Alex Gonzalez, a financial consultant for Thrivent. "Adult children are moving out later, and marrying later. Often after college they temporarily boomerang back home." And there's nothing wrong with that. In fact, these days especially, it can be the smart financial choice. This transition time can actually be a "great opportunity," says Erin Lowry, personal finance expert and author of the bestselling "Broke Millennial" book series. New grads can take advantage of this period to get their financial lives in order: to build up their credit, put some money away in savings, and get a retirement account started. Then, when they are ready to fully launch out on their own, they will be much better positioned for financial success. Here are a few key planks that make for a strong financial foundation. Building credit One challenge many young adults face is that their credit records aren't yet fully formed, since they haven't had years of payment history. That takes time - and the post-grad period is ideal. "It's a great time to start building that credit score," says Thrivent's Gonzalez. "Even basic things like putting gas on your cards, and then paying it off and avoiding rotating balances. Things like that will help when you eventually apply for car loans or mortgages." These days, consumer fintechs have also opened up new avenues for building your credit. Everyday spending, including your daily expenses from buying groceries to gas to paying your bills, can help you build your credit history. Consumers who build credit using a secured credit card can see an average increase in credit score of 81 points within six months, according to Current's proprietary data. A more robust credit score (anything above 740 is seen as very good) will pay off in multiple ways, such as getting lower interest rates on loans, or even helping secure a new job. Yes, sometimes employers check your credit record. Shoring up savings Whether a young adult living at home should be paying 'rent' is really up to the individual family. But ideally, a new grad would be able to reliably put money away - perhaps to start an emergency fund of a few months' worth of expenses, or to save up for a deposit on a rental apartment or a down payment on a home. As they're doing that, they should make sure their money is working as hard as possible. "Everyone should have high-yield savings," advises Lowry. "If you look at your APY and it's .01% - which is the prevailing rate at many big banks you probably know - then it is time to move. The minimum you should be getting is 3%." That might require some shopping around. But younger savers are likely more comfortable with considering online, mobile-first options anyways, beyond just whatever bank happens to have a physical branch down the block. Opening a retirement account It might only involve small sums at first. But the mere step of opening a retirement fund early - either a 401(k) at a new job, or a traditional or Roth IRA - can make the difference between success or failure for Future You. Doing so in your early 20s - as opposed to your 30s, say - will mean an additional decade of compounded growth. That's a big win Boomerang Kids can lock in right now, even if the initial amounts are modest. Of course the eventual goal for new graduates is to launch out on their own, and become fully financially independent. But the harsh economic reality is, that may not be possible right out of the gate. That's why, according to Pew Research Center, today's young adults are lagging behind earlier generations in reaching major life milestones. By using that post-grad period wisely - building credit history, shoring up savings, and opening retirement accounts - they can dramatically increase their odds at a successful transition later on. Lowry says: "Then, when kids move out, they will have a savings stockpile to help them launch out into the world." This story was produced by Current and reviewed and distributed by Stacker. © Stacker Media, LLC.
CNBC
19-06-2025
- Business
- CNBC
Adult children who live with their parents are worse at this skill, study finds
It's not uncommon for adult children to move back in with their parents after leaving home. Nearly half, or 46%, of parents say they have an adult child aged 18 to 35 who has "boomeranged" home, according to a survey released in April by financial services provider Thrivent. What stands out about this group of adults, however, is they tend to struggle more to manage their money. According to the survey, 46% of adult children currently living at home received high marks from their parents for their budgeting skills, compared with 63% of those who never moved back home. While it's unclear exactly why boomerang children are worse at budgeting, the discrepancy could point to a broader issue: Parents of adult children living at home might be more hesitant to have open and honest conversations about money, says Alex Gonzalez, a certified financial planner at Thrivent. "If these adult children launch into their own adult lives without having some of those conversations, then yes, they're going to record lower marks on their own financial skills," Gonzalez says. Furthermore, the problem can be two-fold, Gonzalez says. Parents who avoid discussing finances with younger children may fail to plant the "foundational seeds" necessary for financial independence. And continuing to avoid important financial conversations when a child returns home as an adult can further hinder a boomerang child's ability to navigate future financial decisions, Gonzalez says. When two of Gonzalez's own children moved back home during the Covid-19 pandemic, he says two strategies helped ensure they still developed key financial skills: focusing on the positive aspects of eventually moving out and asking them to contribute to household expenses. Gonzalez says he had open and constructive conversations with his kids about money, and made sure to emphasize all the upsides of a solid financial plan, such as affording their own place, gaining independence and building a life of their own. He went through household bills line by line and asked his children to contribute to the cost of groceries and utilities. Gonzalez also had his kids research the cost of rent in the area and required them to set aside a roughly equivalent amount in a savings account every month to help prepare for living independently. For Gonzalez, the goal wasn't just to collect money — it was to guide his kids through a period of transition with structure, accountability and support. "Every family has their own culture and approach to talking about money," Gonzalez says. "[Our kids] knew that we would expect them to contribute to the expenses of the household. What we did though is help them in that challenging part of their lives."
