The theme this week on the Retirement Quick Tips Podcast is: How To Stop Financially Supporting Your Adult Children. 

In July 2020, 52% of 18- to 29-year-olds were living with their parents – the highest proportion recorded since the Great Depression. These adult children who leave the nest and then return home are called boomerang kids. And if you have a boomerang kid of your own, chances are you’re supporting them financially and it’s putting a strain on your finances and your outlook for retirement. 

Today, I’m talking about why there’s been such a big jump in boomerang kids returning to the nest.

As I just noted, during Covid, over half of 18-29 year olds were living with their parents. Covid upended a lot of young people from school and cities and drove them back home to live with mom and dad, but this trend started long before Covid. 

This is a trend that has been gaining momentum since the Great Recession. I graduated college in 2007, just before the Great Recession. I remember many of my friends struggled to find jobs post-college, and the overhang from the Great Recession lasted for several years. From 2005 to 2013, the % of boomerang kids had increased significantly, according to a Pew Research study.

Beyond the struggles in the economy in the mid-late 2000’s, there was also less stigma associated with moving back home, young adults finding a mate and getting married and having kids much later, and the debt loads of young adults has only become much worse in the last 15 years, paving the way for more than half of young people to move in with mom and dad.

So if Junior is still living in the basement rent-free and you’re paying for his cell phone bill and health insurance, you’re not alone. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance