According to an analysis of census data by the Pew Research Center, about a third of young adults ages 18-34 are more likely to be living with their parents than on their own. The reasons include a difficult job market, student loan debt, high cost of living, and the trend of postponing marriage until a later age. If you’re sharing your home with your adult child, here are a few things to remember.
A new living arrangement should not sideline your finances and your plans to save for retirement – that’s why it is best to establish a clear written plan with your young adult. When developing your plan, be sure to:
- Define what you want your child to achieve over a set time frame – for example, is their goal to pay down debt, save for an apartment, or find a job within a year?
- Decide how your child will contribute. They may not have much, but they could make regular contributions towards rent or paying their cell phone bill, and they can help out with home chores.
- Teach your child how to budget – this will be a valuable skill for them to build their financial independence.
In the end, you’ll be helping your child find their footing to be independent, while also preserving your own financial stability.
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