Kids Living At Home

CBS News recently reported that grown children are moving back home with their parents after graduation from college.  The report stated that kids are driving their parents into the poor house because they are bleeding their parents dry, financially.  Parents are hitting up their savings accounts to buy things for their kids.  And the kids who are living in their basements are not working.  You can see the full report HERE. 

Speaking not only as a kid who moved back home after graduation, but also as a parent who has had a kid move back in after graduation, I have some thoughts about this.  I do believe that if a recent graduate needs to move back in, while they save up some money, that is okay. 

 I was given a piece of advice before I graduated from college: the first job you got after graduation would influence the rest of your career.  When I graduated from college in the Eighties, jobs were plentiful.  I quickly found a job, and lived at home for two years while paying rent and saving money.  It was because I lived at home that I was able to save money to put down half on a car, to have the money to pay cash for our wedding, and save money for what was eventually a portion of the down payment on our house.

We sat down with Middle Child after his graduation and worked out his plan.  As my parents did with me, he has six months to live with us rent free and search for a job.  After six months, he will need to have a job and start paying something towards household expenses.  He will have to buy his own car, pay for the maintenance and upkeep on the car, as well as the insurance.  He will have to pay for his own clothes.  He will also have to help us out with the physical upkeep on the property.  Trust me when I tell you we've got a lot that is almost constant need of repair.  Short term, he's returning to his Lifeguard Gig.  He had language worked into his contract that if he is offered a professional job, he has only to finish out the week.  He doesn't have to give 2 weeks notice before he leaves. 

We aren't putting a timeline on him moving out because 1) He needs to save money and 2) He's living at home with his parents after living on his own for 4 years.  We don't think he's going to want to stay here for long!  Speaking as his parents, I'm glad that we get to spend some extra time with him before he moves on and starts his own life separate from ours.

He is fortunate in that he hasn’t accumulated student loan debt.  Husband and I saved money through the Maryland Pre-Paid College Savings Plan.  His in-state tuition was covered through those funds.  Husband and I were able to cover the difference between his tuition and Room and Board and other fees.  Middle Child himself paid for his textbooks and his living expenses.  His own frugality and thrift through college has made this mom very proud!  I’ve  enjoyed watching him use the strategies he passively learned from me to help keep his own expenses down over the last four years.

I’m a little confused by the CBS report.  I know a lot of Millennials are moving back home in order to save money and pay down student debt after graduation.  The kids I know who have moved back home are hard-working kids who are working more than one job.  They are moving out after two years.  Many of them have paid off their student loans, bought a car with a significant amount of money down, and pulled together a handsome down payment on a home.  I don’t personally know any Millennials who are sucking their parent’s savings down.  

Maybe I'm fortunate enough to know the exemplary Millennials?