The idea of moving back in with their parents is one that makes many adult children cringe. But what some might have dismissed as a regressive step is increasingly seen as a pragmatic or even necessary one, particularly when it comes to financial matters.
The economic effects of the pandemic have accelerated what was an already growing trend of grown-up children flying back to the nest. The number of 20- to 34-year-olds living at home increased by 46% to 3.5 million in the 20 years to 2019, according to the Office for National Statistics (ONS)1. It said the rise steepened after the 2008/09 financial crisis, while it also pointed to a fall in home ownership among younger age groups as house prices increases pushed the first rungs on the housing ladder out of reach2.
There are potential benefits for both parties when children move back into the family home, particularly if the relationships are positive. The financial advantages can also go both ways if adult children are sharing the burden of household costs, rather than simply adding to them. By helping adult children save money now, parents can help give them more financial freedom later on.
But there can be a price to pay, particularly for parents providing financial support to their grown-up children. Parents may resent the impact on their lifestyles, living arrangements and especially their financial wellbeing: adult children returning to their parents’ home during the spring lockdown period added more than £2,700 to total household costs, according to research by Barclays3. While it’s a price that parents are often willing and able to pay, it can also add to any existing money worries. Yet just one in 10 parents have asked their children to contribute rent, the survey found, with a quarter admitting to feeling awkward at having to ask for the help.
Many of us feel reluctant to talk about our finances, whether to family, friends or even strangers. While topics such as interest rates and mortgages are commonly discussed, our own money situations often remain out of bounds. It’s a reticence that may prove costly, especially when it comes to family finances.
There are a few steps that can make it easier and prevent conflict down the line, however. For example:
Adult children often move back home for financial reasons, particularly in the current climate. Redundancy, reduced hours, problems making rent payments or simply a desire to save money and build a mortgage deposit are all common drivers for the decision to return to the family home.
Not having to pay rent and other costs is a great opportunity to create a financial buffer and generate savings (although that advantage might be eroded if it turns out it’s not a free ride). So how do you ensure it’s a financially productive move?
Setting goals can help, whether it’s a projected moving-out date, saving a certain amount or clearing debts. Having targets in place will provide a focus and ensure that both parties can see that the time at home is being used well. Similarly, creating a budget helps to maximise savings and make clear the extent to which adult children can help with household costs without making it harder for them to rebuild their independence.
Moving back home might be a move borne more out of necessity than choice, and it can have its downsides as well as its benefits. Either way, however, it can be a smart financial move for all concerned.
The idea of moving back in with their parents is one that makes many adult children cringe. But what some might have dismissed as a regressive step is increasingly seen as a pragmatic or even necessary one, particularly when it comes to financial matters.
The economic effects of the pandemic have accelerated what was an already growing trend of grown-up children flying back to the nest. The number of 20- to 34-year-olds living at home increased by 46% to 3.5 million in the 20 years to 2019, according to the Office for National Statistics (ONS)1. It said the rise steepened after the 2008/09 financial crisis, while it also pointed to a fall in home ownership among younger age groups as house prices increases pushed the first rungs on the housing ladder out of reach2.
There are potential benefits for both parties when children move back into the family home, particularly if the relationships are positive. The financial advantages can also go both ways if adult children are sharing the burden of household costs, rather than simply adding to them. By helping adult children save money now, parents can help give them more financial freedom later on.
But there can be a price to pay, particularly for parents providing financial support to their grown-up children. Parents may resent the impact on their lifestyles, living arrangements and especially their financial wellbeing: adult children returning to their parents’ home during the spring lockdown period added more than £2,700 to total household costs, according to research by Barclays3. While it’s a price that parents are often willing and able to pay, it can also add to any existing money worries. Yet just one in 10 parents have asked their children to contribute rent, the survey found, with a quarter admitting to feeling awkward at having to ask for the help.
Many of us feel reluctant to talk about our finances, whether to family, friends or even strangers. While topics such as interest rates and mortgages are commonly discussed, our own money situations often remain out of bounds. It’s a reticence that may prove costly, especially when it comes to family finances.
There are a few steps that can make it easier and prevent conflict down the line, however. For example:
Adult children often move back home for financial reasons, particularly in the current climate. Redundancy, reduced hours, problems making rent payments or simply a desire to save money and build a mortgage deposit are all common drivers for the decision to return to the family home.
Not having to pay rent and other costs is a great opportunity to create a financial buffer and generate savings (although that advantage might be eroded if it turns out it’s not a free ride). So how do you ensure it’s a financially productive move?
Setting goals can help, whether it’s a projected moving-out date, saving a certain amount or clearing debts. Having targets in place will provide a focus and ensure that both parties can see that the time at home is being used well. Similarly, creating a budget helps to maximise savings and make clear the extent to which adult children can help with household costs without making it harder for them to rebuild their independence.
Moving back home might be a move borne more out of necessity than choice, and it can have its downsides as well as its benefits. Either way, however, it can be a smart financial move for all concerned.
The idea of moving back in with their parents is one that makes many adult children cringe. But what some might have dismissed as a regressive step is increasingly seen as a pragmatic or even necessary one, particularly when it comes to financial matters.
The economic effects of the pandemic have accelerated what was an already growing trend of grown-up children flying back to the nest. The number of 20- to 34-year-olds living at home increased by 46% to 3.5 million in the 20 years to 2019, according to the Office for National Statistics (ONS)1. It said the rise steepened after the 2008/09 financial crisis, while it also pointed to a fall in home ownership among younger age groups as house prices increases pushed the first rungs on the housing ladder out of reach2.
There are potential benefits for both parties when children move back into the family home, particularly if the relationships are positive. The financial advantages can also go both ways if adult children are sharing the burden of household costs, rather than simply adding to them. By helping adult children save money now, parents can help give them more financial freedom later on.
But there can be a price to pay, particularly for parents providing financial support to their grown-up children. Parents may resent the impact on their lifestyles, living arrangements and especially their financial wellbeing: adult children returning to their parents’ home during the spring lockdown period added more than £2,700 to total household costs, according to research by Barclays3. While it’s a price that parents are often willing and able to pay, it can also add to any existing money worries. Yet just one in 10 parents have asked their children to contribute rent, the survey found, with a quarter admitting to feeling awkward at having to ask for the help.
Many of us feel reluctant to talk about our finances, whether to family, friends or even strangers. While topics such as interest rates and mortgages are commonly discussed, our own money situations often remain out of bounds. It’s a reticence that may prove costly, especially when it comes to family finances.
There are a few steps that can make it easier and prevent conflict down the line, however. For example:
Adult children often move back home for financial reasons, particularly in the current climate. Redundancy, reduced hours, problems making rent payments or simply a desire to save money and build a mortgage deposit are all common drivers for the decision to return to the family home.
Not having to pay rent and other costs is a great opportunity to create a financial buffer and generate savings (although that advantage might be eroded if it turns out it’s not a free ride). So how do you ensure it’s a financially productive move?
Setting goals can help, whether it’s a projected moving-out date, saving a certain amount or clearing debts. Having targets in place will provide a focus and ensure that both parties can see that the time at home is being used well. Similarly, creating a budget helps to maximise savings and make clear the extent to which adult children can help with household costs without making it harder for them to rebuild their independence.
Moving back home might be a move borne more out of necessity than choice, and it can have its downsides as well as its benefits. Either way, however, it can be a smart financial move for all concerned.
1. ONS, Families and households in the UK: 2019, November 2019
2. ONS, Why are more young people living with their parents?, February 2016
3. Barclays, The bill for parents whose children have flown back to the nest, August 2020
1. ONS, Families and households in the UK: 2019, November 2019
2. ONS, Why are more young people living with their parents?, February 2016
3. Barclays, The bill for parents whose children have flown back to the nest, August 2020
1. ONS, Families and households in the UK: 2019, November 2019
2. ONS, Why are more young people living with their parents?, February 2016
3. Barclays, The bill for parents whose children have flown back to the nest, August 2020
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