Financial advice to handle boomerang kids

6:41 AM, Jun 7, 2013   |    comments
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According to a recent Pew Research Center report young adults continue to struggle financially with increased student loan debt and under employment.

That's resulted in 30 percent of young adults ages 25-34 returning home to the family nest.

Sarah Halpin, CERTIFIED FINANCIAL PLANNER™ with The Danforth Group of Wells Fargo Advisors is here with some tips for when your adult child moves back in.

Know the Financial Cost: Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future.

: Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future.

Have a Written Agreement: If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.

: If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.

Contribute to the Household: If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.

If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.

Regular Family Check Ins: Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home.

Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home. 

: Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future. : If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home. 

 

: Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future. : If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home. 

 

: Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future. : If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home.  Parents are often happy to help out, both emotionally and financially. One poll for the National Endowment for Financial Education survey found that "boomerang kids" are having a financial impact on their parents. Of surveyed parents with adult children living at home, 26 % have taken on debt to support their kids, and 7 % have delayed retirement. Know your own financial limits and be realistic about the amount of financial support you can provide and make sure you are not jeopardizing your financial future. : If you agree to allow your child to move in until he/she finds a job, figure out what that's going to take. Then write down the steps to make that happen. It can be much harder to make changes once your child has been under your roof for several months. Set expectations and agree on a reasonable timetable to help ensure that he/she doesn't become complacent. Make sure both of you agree on the contract provisions and both sign the page.If able, he or she should contribute to the rent or mortgage on your home. Consider tying the payment to your child's income, such as 15% of his or her monthly take-home pay. If your child is unable financially to pay rent, set up a barter system so that you exchange work for room and board. These services might include mowing the lawn, painting a room or cooking a meal once a week. Key is the responsibility factor involved.Ask for updates. Regular communication can help avoid misunderstandings, reduce tension and set ground rules for behavior in the home.

Resentment can arise when either parents or children are not doing what they've agreed upon. The better you understand what you expect of each other the more supportive you can be of each other.

 

Having your children return to the safety net of your home can be wonderful time of family closeness. Setting the tone, laying out the ground rules, and making smart financial decisions can help create a positive environment that is in the best interests of everyone.

 

 

 

 

 

 

 

 

 

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