It’s funny to me that articles geared for the recent college graduate encourages them to move back home to save money. Meanwhile, articles geared for parents of millennials warn them to cut the cord now or face a destitute retirement. The reality is that moving in with relatives can be a smart financial move for young adults. It’s also true that living in a multi-generational household can be a positive financial situation for parents. At least, I’m making it positive in the aftermath of the Great Recession. According to a recent article by Market Watch, 3 in 10 young people ages 21 to 35 have moved back with their parents. The author points not as many of the boomerang families are doing well financially compared to single-parent and two-parent households. I think the statistics are misleading since most parents provide financial support to young adult children whether they live at home or not. In our case, it’s about adopting good financial habits as a family no matter what our individual ages.
Sharing household expenses
According to a recent article by U.S. News & World Report, there are 5 ways young adults can save after graduation. The article suggests young adults considering moving back home to save money, but suggests contributing to the household. My sons pay half the utility bills as well as pick up groceries. I’m able to put an extra $100 a month aside for retirement because of their financial contributions to the family.
Cooking family meals
Although some critics say parents of boomerang children spend more money on groceries, I make up for it by not eating out. My children help out with meal planning and cooking, which means I don’t have to get carry-out or dine out as often as I did when my son was away at college. It’s nice to have sit-down family meals, which would only add to my happiness in retirement.
Entering the grown-up world
I’ve noticed my sons have become more financially responsible since they entered the work world. My son uses the envelop systems advocated by Dave Ramsey to keep his spending on track. He no longer drops money on gourmet coffees since he can use the coffee maker at home. It doesn’t cost me any extra money since he’s willing to reuse my K-cup to brew a second, somewhat weaker cup of coffee. Instead of dropping $100 at the movie theater, we spend a few dollar to rent movies. Even if we don’t watch them at the same time, we pass around the DVD before returning it the next day.
Maybe some people dream of a lonely retirement tucked away in a 55-and older community where children aren’t allowed to use the swimming pools. I rather live in a multi-generational household. I imagine children, parents and grandparents living together was the social norm in the past. If people communicate well, every generation ends up saving money. My retirement will be more secure, not less secure thanks to my children.
More from this contributor:
My Husband Refuses to take Social Security
I’m Fed Up with the Feds Money Printing
I Trick my Brain Into Saving More
