How Much Does a Boomerang Kid Cost?
What happens when an adult child moves back home?
Having your kid back home after college is great, but not if it’s placing you at financial risk.
You know boomerang kids, right? You send them off to college, but the little suckers come back. Instead of a cramped 800-sq-ft apartment, where they fend for themselves for meals and their own laundry, why not live at home with Mom and Dad in a 3,000-sq-ft tri-level where they can enjoy a big-screen HDTV while Mom does the cooking, cleaning and washing?!
But 40% of multi-generational families who have more than one generation of adults at home, say they feel financially burdened by the number of family members in the household, according to a study by Allianz.
That’s twice as often as other family types.
I’ve said this for a long time. Having adult kids living in your house places you at more financial risk. Add a kid to you and your spouse, and your food costs rise 50%. Other expenses rise, too — insurance, heating and phone costs. You might even pay for the gas in their car and give them spending money.
I have no objection, provided it doesn’t ruin your future retirement.
And here’s the fascinating result of the study. More than half of families said even though this is a financial burden, they like it. They love that their kids or parents are in the house. Everyone’s enjoying each other’s company. And in many cases, almost half, the kids contribute household expenses.
So, my message to you as a financial planner is simply this: There’s more to life than money. Or, as my wife, Jean, puts it, “Personal finance is more personal than finance.”
I get it. So let’s just make sure we’re not being foolhardy. If you have a lifestyle that creates financial burdens, and places at risk your ability to save for retirement, let’s plan for it, so you can do both.
We can show you how to keep the kids at home, without creating financial risk. You’ll be amazed at how a few tweaks can help improve your situation.
You can look here to find an office close to you to make an appointment, or call us at (888) PLAN-RIC.