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.
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