A recent survey has revealed that a substantial 85% of parents are pleased to have their adult children living back at home. The study involved 2,000 parents whose children in their twenties resided with them, aiming to understand the dynamics of this living situation.

Interestingly, 42% of parents reported that their children had initially moved out, while the remaining 58% stated their offspring never left home. The main reasons for moving out included seeking independence (41%), going to college (29%), or cohabitating with a partner (26%).

Seven out of ten respondents recalled when their child requested to move back in. Financial instability (42%) and the desire to save money (33%) were the primary factors for this return. The survey, sponsored by BOK Financial, also found convenience as another reason why these young adults decided to return home (32%).

Intriguingly, 25% of these young adults wished to live closer to their family, and almost half of the parents (45%) experienced an improved relationship with their children upon their return.

However, the financial implications were a concern for some parents. Around a quarter confessed they were not financially ready for their adult child’s return (27%), and 19% said it negatively affected their own financial planning or retirement plans. Despite this, only 29% reported that their child seldom or never contributed to household finances.

Leasa Melton, manager of product strategy for BOK Financial, recommends patience in these circumstances. She encourages parents to demonstrate good financial habits and support their children’s savings efforts.

Parents predict an average stay of 16 more months for their children, but a third are uncertain about the duration (32%). More than half expressed doubts about their child’s current financial readiness to move out (56%).

To assist their children’s financial independence, 28% of parents desired more resources on financial education or planning. However, an overwhelming 90% concurred on the significance of teaching their children financial lessons before they graduate high school.

Teaching Good Financial Habits

Only 20% would grade their child’s understanding of finance with an A, while 27% were confident enough to give themselves the same grade. Regardless, it’s never too late to learn. Parents have taught their adult children various life lessons, primarily finance-related (66%), domestic-related (59%), and lifestyle-related (52%). A third admitted that they were late bloomers themselves, learning all the financial advice they now teach in adulthood (32%).

While living together, parents emphasized lessons on saving money (77%) and budgeting (71%). They also stressed the importance of paying down debt (53%) and investing (46%).

“Children might not always pick up on financial lessons when they are young,” said Melton. “But as they gain independence, living at home provides another opportunity to help them establish good financial habits—a win for both parents and their adult children.

Source: Good News Network