About 40% of parents have an adult child living with them due to rent or home price increases, needing financial support after graduation or having lost their jobs, according to a survey from financial services company Thrivent, reports CNBC.
About a third — 30% — of parents said kids have moved back in because they are not yet financially independent, while 28% said their child was trying to save money to purchase a home. Other reasons included losing a job (13%), having large debts (12%) and experiencing unexpected costs like medical bills (10%).
Again about one-third — 35% — of respondents said the change has affected their ability to save for their own long-term goals, with 26% reporting it affected their ability to meet short-term goals or pay off debts, while 14% said hosting their new house guest limited their ability to save for their future healthcare needs.
About 70% of the adults surveyed said they have not discussed finances or setting financial expectations with their kids, while 89% have not set a timetable for how long the boomerang will last.
"Parents aren't talking with their kids about this, which means they're enabling their kids for potentially bad financial outcomes in the future," said Nikki Sorum, senior vice president of Minneapolis-based Thrivent Advisors.
The survey was conducted between April 30 and May 3 among 2,200 adults.
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