The Cost of the Boomerang Generation

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For centuries people used to live with their parents until they were married. Over the past decades it has became more popular to leave the paternal nest early, either after turning 18 or graduating from college. Now, more and more young adults are choosing to move back home after college graduation – regardless of whether they have secured a job. For the first time in our modern era, living with parents is the most common choice among 18-34 year olds, even more common than marriage or living with a roommate, according to Pew Research.

This fact is even more apparent when you can see the statistics of Millennials’ plans to purchase a home contrasted to when Baby Boomers purchased their first home.


And the fact that Millennials have the most college associated debt than any other generation also feeds into the fear or inability to purchase their first home.


Although having young adults move back in with parents after leaving the nest for a few years can be beneficial in many ways, having children at home can be more expensive for the parents. The additional costs can cut into their own savings as retirement nears closer. Hidden costs of having children move back home come in many forms: groceries, medical coverage, auto insurance, Netflix accounts, and more. These are costs that parents may not initially think of as issues, but can quickly derail savings accounts and/or retirement plans.

So, whether your offspring spring right back into your arms after college and plan to stay only a few months or a few years – make a plan for yourself so that your own retirement and savings aren’t depleted. Supplementing children while they are working on gaining a foothold in the real world is a great gift, but the reality is that independence is necessary for success.

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The Admin Team at focuses on providing the best information related to finance for individuals living on Main Street America.

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