When Adult Children Move Back Home

Published: March 3, 2025

 

Helping Boomerang Kids Achieve Financial Independence While Maintaining Household Balance

The rising trend of adult children moving back home—often referred to as “boomerang kids”—is reshaping family dynamics and household budgets. Driven by high housing costs, inflation, and student debt, many young adults are returning to their parents’ homes as a temporary financial reset.

While this can be a practical solution, it works best when approached with a plan. Setting clear expectations, encouraging financial independence, and maintaining open communication are essential for a healthy, balanced living arrangement.

Set Clear Expectations from the Start

When adult children move back home, it’s important to set boundaries early. Without clear expectations, a short-term stay can quickly become an open-ended arrangement, adding financial and emotional strain.

• Define Financial Contributions: While you may not charge rent, consider having them contribute to groceries, utilities, or other household expenses to foster responsibility.
• Outline Household Responsibilities: Treat them as an adult member of the household, not just a returning child. Expect them to handle their own laundry, cleaning, and meals, and consider assigning additional tasks like yard work or meal prep.
• Discuss a Timeline: Establish goals like securing full-time employment, paying off debt, or reaching a specific savings milestone before moving out. Having a defined plan helps prevent long-term dependency.

Encourage Financial Growth & Independence

For adult children moving back home, this period offers a powerful opportunity to build smart financial habits and regain independence. This is the perfect time to reinforce lessons on budgeting, saving, and debt management—especially with the guidance of a financial professional.

• Create a Budget Together: Help them map out their income, expenses, and savings goals. Learning to live within their means now sets the stage for long-term financial success.
• Prioritize Debt Repayment: If they have student loans or credit card debt, work together to create a repayment strategy that tackles high-interest debt first.
• Start Saving for the Future: Encourage them to set aside a portion of their income for future housing, an emergency fund, or long-term investment goals. Understanding the time value of money early on can make a significant difference in their financial future.

Regular Check-Ins Keep Progress on Track

Scheduling periodic conversations about financial goals, career progress, and their move-out timeline helps keep everyone accountable. Celebrate milestones, reassess goals if circumstances change, and offer guidance where needed.

Supporting your adult children during a challenging economic climate is an act of love, but it works best with a structured plan. By establishing clear expectations and encouraging financial independence, you can help them transition successfully while maintaining a balanced household.

Support That Balances Love and Logic

Supporting adult children moving back home during challenging economic times is an act of care—but it’s most effective when paired with structure. With open communication and a clear financial plan, you can help your child become more independent while preserving household harmony.

When It's Time to Reevaluate the Living Arrangement

Even with the best intentions, not all shared living situations go according to plan. If progress stalls, expectations become unclear, or tension builds, it might be time to reassess.

Ask yourself:

• Are the financial contributions and responsibilities still fair and consistent?
• Has your adult child made meaningful progress toward the agreed-upon goals?
• Do you feel overwhelmed or under-supported?

Revisiting your arrangement doesn’t mean failure—it’s part of adjusting to changing realities. Having open, respectful conversations and updating your expectations can help keep everyone accountable and on track.

The Financial Impact on Parents

While supporting adult children moving back home can be a compassionate response to life’s challenges, it’s important for parents to understand the financial implications. Covering housing, food, transportation, or other expenses, especially over the long term, can begin to impact your own financial health.

Before making financial commitments, take a close look at your retirement plan, emergency savings, and monthly budget. Are you dipping into savings meant for your future? Are there limits you need to communicate? It’s okay to say “yes” with boundaries that protect your own goals. A financial advisor can help you assess the big picture and make informed decisions that support both generations.

Need Help Creating a Family Financial Plan?

At Hall Financial Advisors, we understand the complexities of family finances. Whether you're supporting your adult child temporarily or helping them prepare for long-term success, our team can guide you through practical strategies that support both your financial goals.

Let’s talk. Schedule a consultation today and build a plan that works for your whole family.

Material provided, in part, by Oechsli, an independent third-party. Raymond James is not affiliated with Oechsli.  #716260

 

 

 

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