Still living with your parents? You're probably bad at this, study warns
Moving back home with Mom and Dad has become surprisingly common for today's young adults. Nearly half of parents say they have an adult child between the ages of 18 and 35 who has 'boomeranged' home for a while, according to a survey by financial services provider Thrivent.
It's not hard to understand why. Entry-level salaries haven't kept pace with the soaring costs of rent, student loans, and everyday expenses. For many, moving home can seem like the smartest way to save money and regroup financially.
But there's a hidden trade-off: While boomerang kids often save on rent and groceries, they tend to fall behind their peers when it comes to building strong budgeting habits.
Why budgeting is harder when you're back in your old bedroom
Of those who moved back home, less than half (46%) got top marks from their parents for their budgeting skills, compared with 63% of those who never returned home, the Thrivent survey found.
'When adult kids move back home, it's easy for budgeting skills to slide because the stakes feel low,' says Caitlin Slavens, a psychologist and co-founder of Couples to Cradles. 'Rent can be free (or almost free), groceries mysteriously appear in the fridge, and Wi-Fi doesn't come with a payment plan.'
In other words, while it might be financially necessary to live rent-free at home, the lack of real-world expenses means budgeting can be easily ignored.
'The lack of financial threat makes the push to budget seem optional,' Slavens adds.
6 Entry-level salaries haven't kept pace with the soaring costs of rent, student loans, and everyday expenses.
highwaystarz – stock.adobe.com
6 Of those who moved back home, less than half (46%) got top marks from their parents for their budgeting skills.
Valerii Honcharuk – stock.adobe.com
Stress adds another layer. Many boomerang kids move home during a rough patch, like from a job loss, breakup, or other life transition.
'Their bandwidth may already be stretched to capacity,' says Slavens. 'Setting a budget requires executive functioning they may not have in excess.'
Patrice Williams-Lindo, a career visibility strategist and CEO of Career Nomad, puts it bluntly: 'When adult kids boomerang home, it's not just about budgeting—it's about power, privacy, and parenting boundaries that never got a reboot.
'Most parents weren't trained to raise adults in an unstable economy—they were trained to get kids 'off the payroll,'' she adds. 'But today's boomerang generation isn't lazy; they're navigating an impossible trifecta: stagnant wages, skyrocketing housing costs, and industries in constant flux.'
The hidden costs for everyone
6 Many boomerang kids move home during a rough patch, like from a job loss, breakup, or other life transition.
peopleimages.com – stock.adobe.com
It's not just young adults who feel the impact. Parents often pick up extra grocery costs, cover higher utility bills, and shoulder the emotional burden of trying to help—sometimes at the expense of their own financial security.
Nearly half of parents who pay for their adult children's expenses say they've sacrificed their own financial stability to do so, according to a survey from Savings.com. About 40% also say they feel pressured to help, even when it stretches their budget thin.
With retirement costs climbing—plus rising property taxes and capital gains eating into older homeowners' wealth—supporting an adult child can become a setback that lingers for years.
6 Nearly half of parents who pay for their adult children's expenses say they've sacrificed their own financial stability to do so.
Yakobchuk Olena – stock.adobe.com
'If parents cover too much, the kids stop learning how to manage cash flow, plan for future needs, or live within their own means,' says Stephan Shipe, a finance professor at Wake Forest University and founder of Scholar Financial Advising.
In today's tough economy, that can ripple out to bigger dreams like buying a home, starting a family, or saving enough for retirement.
How to have better money conversations at home
6 With retirement costs climbing, supporting an adult child can become a setback that lingers for years.
Andrii Lysenko – stock.adobe.com
Experts agree: The best way to avoid stalled progress is through clear expectations and regular money conversations. With the right approach, this living arrangement can build strong financial habits.
Treat returning home 'like a financial incubator,' says Williams-Lindo. 'Create 'family-as-startup' language: Instead of 'rent,' use 'equity contribution.' Instead of 'rules,' call them 'shared operating agreements.' Instead of 'chores,' shift to 'shared investments in household value.''
This mindset helps break old parent-child patterns and teaches real-world financial responsibility before they move out again.
Shipe says parents should think like coaches, not banks.
6 The best way to avoid stalled progress is through clear expectations and regular money conversations.
DragonImages – stock.adobe.com
'I always remind clients: Money amplifies behavior. If someone already has good habits, a little help will propel them forward. If they do not, giving too much can make things worse. The key is to stay out of 'bank' mode and act more like a coach.'
That starts with clear expectations. Shipe recommends coming up with a plan that everyone agrees to for how kids will contribute financially. Even if it's a small contribution, it helps kids stay in the habit of budgeting.
'I also like using matching strategies: If your child is saving for a car, you might match their savings dollar for dollar,' he says. 'This reinforces good behavior while keeping them engaged in their own progress.'
Moving back home can be a smart reset, but without structure, it can stall everyone's finances and strain family ties. Be clear, be kind, and remember: 'Ultimately, the goal is to help them build confidence and competence with money while they are home, not to shield them from all financial responsibility,' says Shipe.
Handled well, boomeranging back can leave both adult kids and their parents financially stronger when it's time to fly solo again.
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The result: 46% of parents report their adult children (aged 18-35) moving back home, according to a March 2025 study from financial services firm Thrivent. "Housing affordability is a big factor here," says Alex Gonzalez, a financial consultant for Thrivent. "Adult children are moving out later, and marrying later. Often after college they temporarily boomerang back home." And there's nothing wrong with that. In fact, these days especially, it can be the smart financial choice. This transition time can actually be a "great opportunity," says Erin Lowry, personal finance expert and author of the bestselling "Broke Millennial" book series. New grads can take advantage of this period to get their financial lives in order: to build up their credit, put some money away in savings, and get a retirement account started. Then, when they are ready to fully launch out on their own, they will be much better positioned for financial success. 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A more robust credit score (anything above 740 is seen as very good) will pay off in multiple ways, such as getting lower interest rates on loans, or even helping secure a new job. Yes, sometimes employers check your credit record. Shoring up savings Whether a young adult living at home should be paying 'rent' is really up to the individual family. But ideally, a new grad would be able to reliably put money away - perhaps to start an emergency fund of a few months' worth of expenses, or to save up for a deposit on a rental apartment or a down payment on a home. As they're doing that, they should make sure their money is working as hard as possible. "Everyone should have high-yield savings," advises Lowry. "If you look at your APY and it's .01% - which is the prevailing rate at many big banks you probably know - then it is time to move. The minimum you should be getting is 3%." That might require some shopping around. But younger savers are likely more comfortable with considering online, mobile-first options anyways, beyond just whatever bank happens to have a physical branch down the block. Opening a retirement account It might only involve small sums at first. But the mere step of opening a retirement fund early - either a 401(k) at a new job, or a traditional or Roth IRA - can make the difference between success or failure for Future You. Doing so in your early 20s - as opposed to your 30s, say - will mean an additional decade of compounded growth. That's a big win Boomerang Kids can lock in right now, even if the initial amounts are modest. Of course the eventual goal for new graduates is to launch out on their own, and become fully financially independent. But the harsh economic reality is, that may not be possible right out of the gate. That's why, according to Pew Research Center, today's young adults are lagging behind earlier generations in reaching major life milestones. 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5 days ago
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Still living with your parents? You're probably bad at this, study warns
Moving back home with Mom and Dad has become surprisingly common for today's young adults. Nearly half of parents say they have an adult child between the ages of 18 and 35 who has 'boomeranged' home for a while, according to a survey by financial services provider Thrivent. It's not hard to understand why. Entry-level salaries haven't kept pace with the soaring costs of rent, student loans, and everyday expenses. For many, moving home can seem like the smartest way to save money and regroup financially. But there's a hidden trade-off: While boomerang kids often save on rent and groceries, they tend to fall behind their peers when it comes to building strong budgeting habits. Why budgeting is harder when you're back in your old bedroom Of those who moved back home, less than half (46%) got top marks from their parents for their budgeting skills, compared with 63% of those who never returned home, the Thrivent survey found. 'When adult kids move back home, it's easy for budgeting skills to slide because the stakes feel low,' says Caitlin Slavens, a psychologist and co-founder of Couples to Cradles. 'Rent can be free (or almost free), groceries mysteriously appear in the fridge, and Wi-Fi doesn't come with a payment plan.' In other words, while it might be financially necessary to live rent-free at home, the lack of real-world expenses means budgeting can be easily ignored. 'The lack of financial threat makes the push to budget seem optional,' Slavens adds. 6 Entry-level salaries haven't kept pace with the soaring costs of rent, student loans, and everyday expenses. highwaystarz – 6 Of those who moved back home, less than half (46%) got top marks from their parents for their budgeting skills. Valerii Honcharuk – Stress adds another layer. Many boomerang kids move home during a rough patch, like from a job loss, breakup, or other life transition. 'Their bandwidth may already be stretched to capacity,' says Slavens. 'Setting a budget requires executive functioning they may not have in excess.' Patrice Williams-Lindo, a career visibility strategist and CEO of Career Nomad, puts it bluntly: 'When adult kids boomerang home, it's not just about budgeting—it's about power, privacy, and parenting boundaries that never got a reboot. 'Most parents weren't trained to raise adults in an unstable economy—they were trained to get kids 'off the payroll,'' she adds. 'But today's boomerang generation isn't lazy; they're navigating an impossible trifecta: stagnant wages, skyrocketing housing costs, and industries in constant flux.' The hidden costs for everyone 6 Many boomerang kids move home during a rough patch, like from a job loss, breakup, or other life transition. – It's not just young adults who feel the impact. Parents often pick up extra grocery costs, cover higher utility bills, and shoulder the emotional burden of trying to help—sometimes at the expense of their own financial security. Nearly half of parents who pay for their adult children's expenses say they've sacrificed their own financial stability to do so, according to a survey from About 40% also say they feel pressured to help, even when it stretches their budget thin. With retirement costs climbing—plus rising property taxes and capital gains eating into older homeowners' wealth—supporting an adult child can become a setback that lingers for years. 6 Nearly half of parents who pay for their adult children's expenses say they've sacrificed their own financial stability to do so. Yakobchuk Olena – 'If parents cover too much, the kids stop learning how to manage cash flow, plan for future needs, or live within their own means,' says Stephan Shipe, a finance professor at Wake Forest University and founder of Scholar Financial Advising. In today's tough economy, that can ripple out to bigger dreams like buying a home, starting a family, or saving enough for retirement. How to have better money conversations at home 6 With retirement costs climbing, supporting an adult child can become a setback that lingers for years. Andrii Lysenko – Experts agree: The best way to avoid stalled progress is through clear expectations and regular money conversations. With the right approach, this living arrangement can build strong financial habits. Treat returning home 'like a financial incubator,' says Williams-Lindo. 'Create 'family-as-startup' language: Instead of 'rent,' use 'equity contribution.' Instead of 'rules,' call them 'shared operating agreements.' Instead of 'chores,' shift to 'shared investments in household value.'' This mindset helps break old parent-child patterns and teaches real-world financial responsibility before they move out again. Shipe says parents should think like coaches, not banks. 6 The best way to avoid stalled progress is through clear expectations and regular money conversations. DragonImages – 'I always remind clients: Money amplifies behavior. If someone already has good habits, a little help will propel them forward. If they do not, giving too much can make things worse. The key is to stay out of 'bank' mode and act more like a coach.' That starts with clear expectations. Shipe recommends coming up with a plan that everyone agrees to for how kids will contribute financially. Even if it's a small contribution, it helps kids stay in the habit of budgeting. 'I also like using matching strategies: If your child is saving for a car, you might match their savings dollar for dollar,' he says. 'This reinforces good behavior while keeping them engaged in their own progress.' Moving back home can be a smart reset, but without structure, it can stall everyone's finances and strain family ties. Be clear, be kind, and remember: 'Ultimately, the goal is to help them build confidence and competence with money while they are home, not to shield them from all financial responsibility,' says Shipe. Handled well, boomeranging back can leave both adult kids and their parents financially stronger when it's time to fly solo again.
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Moving back home with Mom and Dad has become surprisingly common for today's young adults. Nearly half of parents say they have an adult child between the ages of 18 and 35 who has 'boomeranged' home for a while, according to a survey by financial services provider Thrivent. It's not hard to understand why. Entry-level salaries haven't kept pace with the soaring costs of rent, student loans, and everyday expenses. For many, moving home can seem like the smartest way to save money and regroup financially. But there's a hidden trade-off: While boomerang kids often save on rent and groceries, they tend to fall behind their peers when it comes to building strong budgeting habits. Of those who moved back home, less than half (46%) got top marks from their parents for their budgeting skills, compared with 63% of those who never returned home, the Thrivent survey found. 'When adult kids move back home, it's easy for budgeting skills to slide because the stakes feel low,' says Caitlin Slavens, a psychologist and co-founder of Couples to Cradles. 'Rent can be free (or almost free), groceries mysteriously appear in the fridge, and Wi-Fi doesn't come with a payment plan.' In other words, while it might be financially necessary to live rent-free at home, the lack of real-world expenses means budgeting can be easily ignored. 'The lack of financial threat makes the push to budget seem optional,' Slavens adds. Stress adds another layer. Many boomerang kids move home during a rough patch, like from a job loss, breakup, or other life transition. 'Their bandwidth may already be stretched to capacity,' says Slavens. 'Setting a budget requires executive functioning they may not have in excess.' Patrice Williams-Lindo, a career visibility strategist and CEO of Career Nomad, puts it bluntly: 'When adult kids boomerang home, it's not just about budgeting—it's about power, privacy, and parenting boundaries that never got a reboot. 'Most parents weren't trained to raise adults in an unstable economy—they were trained to get kids 'off the payroll,'' she adds. 'But today's boomerang generation isn't lazy; they're navigating an impossible trifecta: stagnant wages, skyrocketing housing costs, and industries in constant flux.' It's not just young adults who feel the impact. Parents often pick up extra grocery costs, cover higher utility bills, and shoulder the emotional burden of trying to help—sometimes at the expense of their own financial security. Nearly half of parents who pay for their adult children's expenses say they've sacrificed their own financial stability to do so, according to a survey from About 40% also say they feel pressured to help, even when it stretches their budget thin. With retirement costs climbing—plus rising property taxes and capital gains eating into older homeowners' wealth—supporting an adult child can become a setback that lingers for years. 'If parents cover too much, the kids stop learning how to manage cash flow, plan for future needs, or live within their own means,' says Stephan Shipe, a finance professor at Wake Forest University and founder of Scholar Financial Advising. In today's tough economy, that can ripple out to bigger dreams like buying a home, starting a family, or saving enough for retirement. Experts agree: The best way to avoid stalled progress is through clear expectations and regular money conversations. With the right approach, this living arrangement can build strong financial habits. Treat returning home 'like a financial incubator,' says Williams-Lindo. 'Create 'family-as-startup' language: Instead of 'rent,' use 'equity contribution.' Instead of 'rules,' call them 'shared operating agreements.' Instead of 'chores,' shift to 'shared investments in household value.'' This mindset helps break old parent-child patterns and teaches real-world financial responsibility before they move out again. Shipe says parents should think like coaches, not banks. 'I always remind clients: Money amplifies behavior. If someone already has good habits, a little help will propel them forward. If they do not, giving too much can make things worse. The key is to stay out of 'bank' mode and act more like a coach.' That starts with clear expectations. Shipe recommends coming up with a plan that everyone agrees to for how kids will contribute financially. Even if it's a small contribution, it helps kids stay in the habit of budgeting. 'I also like using matching strategies: If your child is saving for a car, you might match their savings dollar for dollar,' he says. 'This reinforces good behavior while keeping them engaged in their own progress.' Moving back home can be a smart reset, but without structure, it can stall everyone's finances and strain family ties. Be clear, be kind, and remember: 'Ultimately, the goal is to help them build confidence and competence with money while they are home, not to shield them from all financial responsibility,' says Shipe. Handled well, boomeranging back can leave both adult kids and their parents financially stronger when it's time to fly solo again. How America's 'Most Tax-Friendly State' Is Helping Rich Homebuyers Build Generational Wealth There Are Nearly 15 Million Vacant Homes in America—Here's Where Most of Them Are Home Affordability Is 'Historically Low,' Says JPMorganChase
