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Adult children moving back home

Posted June 26, 2013 in Altoona, Advice Column, Pleasant Hill

This topic is fresh on my mind because I have two recent college graduates, and we are always searching for ways to cut costs, save money and pay down those pesky student loans.

Living with your adult children is an entirely different situation than when they were younger, did whatever they were told and followed the rules of your house.  The situation, however, can be beneficial for all parties involved if you handle it appropriately.

About six million young adults have moved back in with their parents. Some young adults have never moved out, and others are coming back home to get back on their feet after a job loss or graduating college. This is the chance for parents to help reinforce responsible spending habits of adult children.

Parents can charge the young adult lower rent than what the going market is requiring. Next, the parents can put a portion of the rent into savings for the young adult or set it aside to be used to pay down some accrued debt. The lower rent amount also allows the young adult to ensure savings that can go towards paying down debt. If the arrangement does not go according to plan, the parents can then choose to keep all of the rent for themselves and not use it to help the young adult out. Both parties will win if some is being saved for future use or paying down debt, and the parents will also benefit from a portion of funds going toward rent and into their pocket.

How strict these conditions are should be tailored for each situation; the financial conditions of both parents and children will determine these factors. Parents who take in an unemployed young adult need to encourage him or her to find work as soon as possible. Temporary employment will have to work if her or she is not able to locate a job in the chosen profession in a timely manner.

Parents who provide the encouragement and clear ground rules will help their kids get on their feet and out the door quickly with a savings account right behind them. The rent money for parents can benefit the parents’ retirement savings and tight budgets as well. A good plan can leave everyone better off then before. Consider the options and possibilities as you formulate your plan.

The time frame can be brief or longer, depending upon the situation. But if everyone goes into the situation respectful of the other parties and appreciative of some additional time together, at the other end it will be a win-win for everyone. Some financial responsibility will be gained by all parties and independence from some hefty debt load and a savings account, too.

Information provided by Lori Slings, Valley Bank, 160 Adventureland Drive, Suite H, Altoona, (515) 967-4700,

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