Why adult children are moving home, again
When Lindsay Reynolds was put on leave from her job in events and marketing at Disney this year, her parents suggested she leave Florida and return home to Pennsylvania to save money while looking for a job. She took them over.
“It was a good decision, but there are days when you feel like an absolute failure,” says Reynolds, 27. “I built this life in Florida and worked really hard. No one wants to go back to living with their parents and admit that they need help.
But, she adds, it’s important to accept help when you need it. “None of us can do all of this alone,” she says, noting that she has found work since moving and is saving up to return to Florida early next year.
The coronavirus pandemic is putting pressure on many families, including those with adult children. These pressures include:
• About two-thirds of parents report providing financial support to their adult children during the crisis, helping them pay for everything from groceries to health costs.
• Half help their adult children pay for everyday expenses such as gasoline, according to a recent Country Financial survey.
• One in five people saw their adult child return home with them, according to the study, which is based on responses from more than 1,300 adults as of mid-August.
Even before the pandemic, millennials were delaying life stages like buying homes and getting married as they faced financial constraints like student loans – many staying with their parents longer than previous generations. But the pandemic has caused another economic blow to this generation, with half of Americans aged 25 to 39 having suffered job or income losses since March, about 5 percentage points more than baby boomers. , according to census data.
“This tendency of adult children to go home was something we saw a lot during the Great Recession,” said Troy Frerichs, vice president of investment services at Country Financial. “Now you see it’s happening again. “
During an economic downturn, young adults tend to have less wealth to fall back on than older Americans. This may explain why 4 in 10 parents with adult children told Country Financial they are providing more support to their children during the pandemic than before.
The data echoes the Pew Research Center’s September findings that a majority of 18 to 29 years of age now live with their parents, surpassing a previous peak set during the Great Depression.
“You might have student debt and little savings, and that’s why (you) are moving,” says Bobbi Rebell, Certified Financial Planner at Tally whose 20-year-old son returned from college in March.
Her 23-year-old daughter also lives at home while working and saving money. “It’s really not their fault,” Rebell said.