Are your adult kids back home?
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After all those years of play dates, soccer games, piano lessons, and college payments, you’ve finally got the house to yourself. And then, you don’t—your kids moved back in. Managing your retirement lifestyle and your dependents can be tricky. We’ll share three tips to help you find a balance between your needs and theirs.
What it may be costing you and your retirement
The number of boomerang children—those who move out and then back in with their parents—has continued to climb since the 1960s and recently surpassed 50% for the first time since at least 1900. Whether they’ve moved home after college to save money or they’ve hit a rough patch, the move home is usually meant to be temporary.
But sometimes temporary can feel permanent, and it may start to affect your finances at a time when you may want to focus on maximizing your retirement savings. Your grocery bill may increase, electricity costs can go up, and other budget items you thought were stable are facing their own inflation.
Here are three tips for you to consider when your boomerang kids move back in, to help them move forward and move out.
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Establish the ground rules | Help them set a goal and a budget | Expect them to achieve their goal |
Although your kids are grown, you still get to make the rules—after all, they’re back under your roof. Whether it’s defining what they're responsible for paying for, setting hours for house guests, or assigning chores around the house, clarify your expectations and house rules up front. | As comfortable as your kids may seem at home, they likely want to be independent as much as you want them to be. Help them figure out what they may need to do or save in order to move out. If they need to save money, have them make a budget and figure out how much time they anticipate it’ll take to reach their goal. |
Of course, you love your kids, and you want to support them, but you should also remain focused on your retirement savings goals. At some point, they need to take responsibility, stick to their budget, achieve their savings goal, and build their life outside your home. Don’t feel guilty—you did it. Give them the confidence that they can, too. |
Help them learn to fly, so they can leave the nest
You worked hard to raise your kids, and you’ll always want to be there to help them when they need you. But as you approach your retirement years, you may not be able to financially help your kids without affecting your own financial savings. By helping them learn how to budget and save, you’re supporting them and providing them valuable life lessons to help them become financially independent. And then you can get back to your empty nest.
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
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