More and more 20-somethings are moving back in with their
parents for extended stays due to financial issues, and the trend shows staying
power according to recent surveys. The effect of moving out of a parents’ home
and then moving back in with them down the road, is called “boomeranging.”
While there’s often a silver lining for parents, they get to spend
more time with their kids, addressing the underlining financial issue should be
the top priority.
According to a survey
released in August from Ohio State University, 28 percent of young adults aged 25 to 29 moved home with
their parents for extended periods of time from 2007 to 2009, mainly due to
job troubles or wage-related issues.
Another study showed that
22% of 25 to 34 year-olds lived in multi-generational households in 2010,
up from 11% in 1980, according to a Pew Research Center analysis of Census
data.
The downturn in the economy plays a role, but lack of money
management skills also is a big factor. With that in mind, here are tips for
managing finances for young adults:
- Develop a
Real Budget- While many people can get by managing their money online, there’s
still no substitute for a detailed, budget for tracking and planning expenses.
Websites such as Mint.com or Wesabe.com can help. Once a budget is set,
measures can be taken to address unnecessary spending and a savings plan
established.
- Save on a
Daily Basis: While coupon-clipping may seem like an older generation’s hobby,
it can be extremely beneficial for young adults looking to trim their monthly expenses.
The new generation of coupon websites like Groupon.com and Valpak.com make
finding deals even easier than clipping coupons.
- Identify
and Eliminate Debt- Post-college adults should figure out which
monthly payments are weighing them down and do their best to pay off and/or
consolidate these debts. Otherwise, high-rate
debt like credit cards will continue to hold them back financially.
For young adults with high-rate debt from multiple sources,
Community Financial offers low rate debt consolidation loans and a 0% Balance transfer option on their Platinum
Visa credit card (LINK). Re-financing debt allows the borrower to make just one
lower monthly payment and may result in
paying off the debt faster.
Having successful, independent children is the goal of all parents
and with a little soul searching, budgeting and sacrifice young adults can gain
financial freedom and confidence to live on their own.
For more information on Community Financial debt consolidation
options and balance transfer offer, stop by one of our eight convenient
locations or call 877-937-2328.
Other
sources include:
http://www.cfcu.org/Credit_Cards_34.html
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