Still Living With Your Parents? You're Probably Bad at This, Study Warns
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 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.
'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.
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