Latest news with #Thrivent
Yahoo
08-07-2025
- Business
- Yahoo
Parents shell out $5,000 a month and delay retirement to support 27-year-old daughter living at home
While some parents are enjoying their lives as empty nesters, others are taking financial care of their adult children. One California-based mother, 66, who chose to remain anonymous, recently spoke to CNBC about how much she and her husband pay to financially support their 27-year-old daughter. The mother told the publication her daughter moved back into their home in early 2024. Since then, she and her husband have been paying an extra $5,000 per month, including $1,500 on food, $700 on transportation, $400 on her pet cat, plus other miscellaneous expenses. With the extra money being allocated to their daughter's expenses, the mother said she and her husband would no longer be going on vacation this year, and her spouse is considering delaying his retirement. 'We were not planning on this kind of expenditure at this point of our lives,' she said. 'The reason we do it is because we don't want to see her on the street.' The father explained to CNBC that his decision not to retire relies on his employer-sponsored health insurance, which currently runs him and his wife $600 for their daughter. 'At this point, I was hoping to do a lot more travelling … we've really put that on the back burner,' the mother said. 'I thought my husband and I would have the house to ourselves with the dogs, and we wouldn't be worried sick about her all the time.' These parents aren't alone, as a survey published in May by financial services provider Thrivent discovered that almost 40% of parents in the U.S. claim that supporting their adult children has impacted their savings goals. Some, like the California parents, have turned to Kim Muench, a parenting coach who specializes in young adults. She told CNBC how clients who are financially affected by their children living at home are coping. 'Parents sometimes hesitate to get help for themselves and invest in their health … because they're already spending more than they would like to support their adult or emerging adult children,' Muench said. When the arrangement becomes prolonged, she said parents end up becoming worried that they will be providing for their child for the rest of their lives. According to Muench, the best method for trying to get around the problem is for parents to continue having conversations with their children and to set financial boundaries. 'It takes consistent conversations, because it's probably not going to happen in the first conversation,' she said. 'And it takes an emotional maturity level on both the parents and the emerging adult side to figure out how they can work together.'
CNBC
03-07-2025
- Business
- CNBC
Couple spends $5,000 a month to support their 27-year-old daughter who moved back home: 'We were not planning on this'
At 66 years old, one Sherman Oaks, California-based mom thought she'd be enjoying an empty nest with her husband. Instead, she's sharing her home with an unexpected roommate: her 27-year-old daughter. Since their 27-year-old moved back home in early 2024, the mother, who asked to remain anonymous to protect her daughter's identity, says she and her husband are spending close to $5,000 a month covering all of her daughter's living expenses, including food, transportation and health care. Because of the increased expenses, she says they're no longer going on vacation this year, and her husband, a radiologist, may have to delay retirement. "We were not planning on this kind of expenditure at this point of our lives," the mother says. "The reason we do it is because we don't want to see her on the street." The couple join a growing number of parents who say their finances have been affected by children aged 18 to 35 moving back home. One survey published in May by financial services provider Thrivent found that nearly 40% of U.S. parents say supporting their adult children has impacted their savings goals — the highest percentage since the survey began four years ago. The parents from Sherman Oaks say their relationship with their daughter has become so strained that they've turned to Kim Muench, a parenting coach who specializes in young adults, for guidance. Muench says "a good majority" of her clients have been affected financially by their adult children living at home. Many parents aren't traveling like they typically would, are pushing off retirement and are forgoing other self-care expenses. "Parents sometimes hesitate to get help for themselves and invest in their health … because they're already spending more than they would like to support their adult or emerging adult children," she says. While using short-term savings to support adult children may mean missing a vacation or not going out to dinner as often, dipping into long-term savings or delaying retirement can lead to financial challenges later in life — especially if health issues or age make it difficult to keep working, experts say. Some decisions, however, aren't always driven by a lack of money: "I would say 80% is emotional, 20% is financial from the parents," Muench says. Many of her clients forgo vacations because they don't trust their kids to stay home alone, Muench says. The father from Sherman Oaks says that retirement wouldn't just mean a loss of income, it would also mean losing access to his employer-sponsored health care — which currently costs the couple close to $600 a month for their daughter. "At this point, I was hoping to do a lot more travelling … we've really put that on the back burner," the mother says. "I thought my husband and I would have the house to ourselves with the dogs, and we wouldn't be worried sick about her all the time." While many parents are happy to care for their adult children when they first move back home, there's usually an expectation that the move will be temporary, Muench says. However, a lack of communication between parents and children, especially around finances, can often leave parents feeling stuck in a long-term living arrangement. "When their son or daughter is not taking [financial responsibility] on incrementally, they actually get very worried that they will be financially providing for the rest of their lives," Muench says. Muench says parents can work with their adult children by having open, calm conversations to define financial boundaries together. Instead of taking drastic measures, Muench suggests parents introduce gradual financial boundaries to help young adults build responsibility with support. Ask them to start small, she says, such as taking over their phone bills or putting a weekly portion of money away in a separate savings account to mimic paying rent. "It takes consistent conversations, because it's probably not going to happen in the first conversation," Muench says. "And it takes an emotional maturity level on both the parents and the emerging adult side to figure out how they can work together."
Forbes
01-07-2025
- Business
- Forbes
Are Your Adult Children Moving Back Home? Here's How To Make It Work
Due to financial pressures and personal events, 46% of parents say their adult children have moved back home. Here's how to navigate the potential 'boomerang burden.' Financial pressures are forcing many adult children to 'boomerang' back home It's a financially challenging time to be a young adult. In a recent 10-country survey of more than 10,000 young people aged 18–34, EY found that 87% desire financial independence and 60% still live with their parents. Separately, Intuit's 2025 Prosperity Index found that the cost of living is the biggest money stressor for young people, worrying 97% of respondents. Sixty percent would feel more confident if they had more financial education, but it wasn't covered in school. Nor is it just young people feeling the strain. Recently, Thrivent's Boomerang Kids Survey indicates that parents are more likely than ever to provide temporary support. Fully 46% of parents said their adult children have moved back home, potentially creating a 'Boomerang Burden' with long-term financial consequences. 'For most parents, allowing their children to move back home is about love and support—but that generosity can come at a cost,' says Alex Gonzalez, Thrivent Financial Advisor. 'Thrivent's survey found that nearly four in 10 parents providing short-term support to adult children report it's impacting their long-term savings goals—like retirement—and short-term savings goals—like vacations.' Gonzalez, whose own three adult children have boomeranged back home, has some advice for surviving and thriving through a potentially challenging time for everyone involved. Here's what we covered. The financial punch The biggest reason young adults are moving back in with their parents is economic. 'Housing costs are still the number one reason adult kids are moving back home—32% say it's the main driver,' says Gonzalez. 'However, this is notably down from 50% in 2024, likely thanks to rent prices cooling off a bit.' But housing isn't the only challenge. The rising cost of everyday essentials is hitting many young workers hard (30%). Another significant factor is personal events, such as divorce and separation (20%). Thrivent found that for many parents, supporting adult children has a negative effect on their long-term savings goals like retirement (38%) and short-term saving goals like vacations (39%). Amid current economic pressures, many parents (almost 45%) have either withdrawn or scaled back financial assistance to their children. Opening the door For those opening the door to their adult children, strong communication is a big factor in a successful move-back. 'It's cliché, but communication is key,' says Gonzalez. 'Concerningly, Thrivent's survey found that 60% of young adults say their parents have not discussed the financial impact of supporting them a second time.' Staying quiet on this issue can be a huge mistake, he warns. 'Not only does it potentially strain parents' finances, but it can also hold young adults back, leaving them unprepared to manage money on their own long-term.' 'Before your child moves back home, have a candid conversation about expectations,' says Gonzalez. 'Will they chip in for utilities or the internet? Or will they live rent-free with the understanding that those funds go into savings each month? 'Being upfront from the start helps avoid confusion later—and ensures you're not just offering short-term care and support, but helping set them up for long-term success.' Being there in the transition period Gonzalez, whose three adult children have moved back in and out again, stresses that he and his wife were intentional about framing it as a transitional phase. 'It was a proactive step forward rather than a fallback,' he says. 'We didn't charge them rent in the traditional sense. Instead, we asked them to allocate that same amount of money into a dedicated savings account earmarked for a future home purchase. 'This approach gave them structure and a sense of financial purpose. It also helped them visualize a clear path toward independence.' Being there for your adult children in the transition phase of their life journey should be about more than providing financial support. Your child may also need to enhance their financial literacy. Thrivent found that while 63% of children who never returned home received an A or B grade on their budgeting skills, only 46% of 'boomerang kids' received good marks. 'That deficit of financial knowledge is significant,' says Gonzalez. 'From my experience, it's clear that temporary financial support is just the start. What really moves the needle is teaching the principles behind the support—how to save, how to budget, and how to plan ahead.' When Gonzalez's kids moved back home, he didn't just give them a place to live—he gave them tools to succeed, including: Today, says Gonzalez, his children are fully employed, contributing to retirement accounts, managing their own health insurance and phone bills and saving with purpose. 'That's not an accident; it's the result of deliberate conversations and expectations.' Enjoying your boomerang kids Can you enjoy having your kids home again, even if it's due to necessity? Yes—and setting expectations for all parties at the start can go a long way toward making the experience enjoyable for everyone. 'Every family is different, so it's important to consider your unique situation when setting ground rules,' says Gonzalez. 'When adult children move back home, chances are, the bills will go up. Figure out a way to share costs for little things like laundry detergent, streaming services, or snacks.' It may also be helpful to lean on a financial advisor, he says. 'They can help you navigate the situation and understand the tradeoffs between your long-term financial goals and the short-term support you want to provide your children.' One thing Gonzalez often shares with his clients in this situation is that while having adult children move back home may not have been in the original plan, it can be an incredibly special time. 'Make the most of it by having a few weeknight dinners together or finding a show everyone likes,' he says. 'Before you know it, they'll be moving back out again.'
New York Post
01-07-2025
- Business
- New York Post
The case for moving out: Why adult kids still living with their parents should get their own place — now
For the first time in years, the math might finally favor renters. Across the country, prices for studios, one-bedrooms, and two-bedroom apartments are dropping. In May 2025, the national median rent fell for the 22nd month in a row, according to data from sign that the rental market is softening after years of soaring costs and impossible trade-offs. But despite this rare opening, millions of young adults aren't seizing the opportunity to move out. Instead, they're staying put in their childhood bedrooms, stuck between caution and comfort. This moment matters. For many young adults, waiting for the perfect time to launch could mean missing the best time. And the longer they delay, the more they risk falling behind in ways that no amount of rent-free living can fix. Comfort is expensive 3 This moment matters. For many young adults, waiting for the perfect time to launch could mean missing the best time. – Living at home is becoming a defining feature of a generation. Nearly half of parents today have had an adult child move back in, according to a recent survey from Thrivent. That shift made sense in recent years. Rent was often unaffordable, inflation was brutal, and entry-level wages couldn't keep up with everyday costs. But today's numbers tell a different story. Asking rents have dropped nearly across the board: Studios are down 1.9% year over year, one-bedrooms down 2.3%, and two-bedrooms down 1.7%, according to the May 2025 Rental Report. In more than half of the nation's largest cities, rent growth is now trailing overall inflation, something that hasn't happened consistently in years. For renters willing to downsize, commute, or share space, the market is finally cooling enough to offer real options. Yet many young adults remain at home—not because they have to, but because they can. And while that decision might feel safe, experts say it could be costing more than they think. The generation that's falling behind 3 For renters willing to downsize, commute, or share space, the market is finally cooling enough to offer real options. chokniti – Living at home might postpone rent, but it also postpones progress. That's because a little financial pressure is good. It forces young adults to budget with intention, develop discipline, and build habits that rarely form when the stakes seem low. Thrivent's survey backs this up: Only 46% of young adults currently living at home earned high marks from their parents for budgeting skills, compared with 63% of peers who never moved back. Even more concerning is that many young adults aren't saving at all, despite increased levels of living at home ostensibly to save money. A 2022 Morgan Stanley report found that some boomerang kids were actually spending more on nonessentials, helping drive a luxury goods boom among young adults with low living expenses and high discretionary income. And when they do save, it's often not enough to close the wealth gap. Millennials report having an average of $110,556 in savings—nearly half the average savings held by boomers, according to a 2025 Newsweek survey. And nearly 1 in 5 millennials has no savings at all. At a time when rents are softening and financial habits could be sharpened, many young adults are falling further behind—not despite living at home, but perhaps because of it. Parents are paying, too The costs aren't just borne by adult children. Parents are footing a growing bill, often at a pivotal time in their own financial lives. Thrivent's data reveals that 38% of parents with adult children at home have seen their retirement savings take a hit. Also, 39% say it's affected their ability to save for near-term goals like travel, home repairs, or health care. Yet 60% of young adults say their parents never discuss these trade-offs with them. This financial silence can seem generous, but it might be undermining both generations. And the ripple effects extend beyond the household. When young adults stay home longer, they delay key milestones like renting, buying a first home, or relocating for better job opportunities. These delays slow down movement in the broader housing market and compound the strain on multigenerational living arrangements. Support without structure can become a trap. Without a plan, what starts as temporary shelter can harden into inertia. The case for moving out 3 The costs aren't just borne by adult children. Parents are footing a growing bill, often at a pivotal time in their own financial lives. Africa Studio – The cost of living might still be high, but the cost of waiting could be higher. For much of U.S. history, progress meant motion, argues Yoni Appelbaum, a social and cultural historian at The Atlantic. Moving out, whether across town or across the country, was how people chased opportunity, built community, and shaped new lives. But today, that momentum has slowed to a crawl. Just 1 in 13 Americans moves in a given year, down from 1 in 5 in 1970. Staying put has become the norm, but that doesn't mean it's working. Living at home might seem like the safer choice. But safety without growth can quickly become stagnation. The longer you stay in a consequence-free environment, the harder it becomes to develop the habits, independence, and self-trust that adulthood requires. Moving out doesn't have to be perfect. It just has to be a start.
Miami Herald
27-06-2025
- Business
- Miami Herald
The post-grad playbook: How new graduates can prep their finances for success, even in a rough economy
The post-grad playbook: How new graduates can prep their finances for success, even in a rough economy As this year's new college grads receive their sheepskins and throw their caps into the air, jubilation can turn very quickly to trepidation. That's because they are entering the most challenging job market for entry-level employees in years. Current, a consumer fintech banking platform, shares financial tips for new graduates as they navigate a challenging economy. The labor market for new grads "deteriorated noticeably" in the year's first quarter, says the Federal Reserve Bank of New York, with that group's unemployment rate jumping to 5.8%. That's the highest level since the pandemic was at full force back in 2021. Meanwhile, sky-high housing costs mean that young adults often don't have the ability to strike out on their own quite yet. 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. Here are a few key planks that make for a strong financial foundation. Building credit One challenge many young adults face is that their credit records aren't yet fully formed, since they haven't had years of payment history. That takes time - and the post-grad period is ideal. "It's a great time to start building that credit score," says Thrivent's Gonzalez. "Even basic things like putting gas on your cards, and then paying it off and avoiding rotating balances. Things like that will help when you eventually apply for car loans or mortgages." These days, consumer fintechs have also opened up new avenues for building your credit. Everyday spending, including your daily expenses from buying groceries to gas to paying your bills, can help you build your credit history. Consumers who build credit using a secured credit card can see an average increase in credit score of 81 points within six months, according to Current's proprietary data. 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. By using that post-grad period wisely - building credit history, shoring up savings, and opening retirement accounts - they can dramatically increase their odds at a successful transition later on. Lowry says: "Then, when kids move out, they will have a savings stockpile to help them launch out into the world." This story was produced by Current and reviewed and distributed by Stacker. © Stacker Media, LLC.
