Full Article Link: New York Post – Still Living With Your Parents? You’re Probably Bad at This, Study Warns
“Money amplifies behavior. If someone already has good habits, a little help will propel them forward. If they do not, giving too much can make things worse. The key is to stay out of ‘bank’ mode and act more like a coach.”
—Stephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- Boomerang Kids Face Hidden Budgeting Challenges
While moving back in with parents can relieve financial pressure, it often comes with a drop in budgeting discipline. Only 46% of adult children who returned home were rated highly by their parents for financial habits, compared to 63% of those who stayed out on their own. - The Stakes Feel Lower at Home
Living rent-free with groceries covered and no utility bills can make budgeting feel optional. Without real-world expenses, young adults may miss out on learning essential cash flow and planning skills. - Parents Are Paying a Price Too
Nearly half of parents supporting adult children say it has come at the cost of their own financial stability. This includes higher household costs and deferred retirement savings—compromises that can have lasting consequences. - Financial Dependency Can Undermine Confidence
According to Dr. Shipe, when parents do too much financially, they risk stalling their child’s progress. But with the right approach—expectations, contributions, and matching incentives—parents can foster independence rather than delay it. - Structure Turns Boomeranging Into a Financial Win
Experts recommend treating the arrangement like a temporary financial training ground. Instead of “rent,” use terms like “equity contribution.” Instead of just paying bills, encourage shared investments in household upkeep. Clear agreements and regular check-ins can keep everyone aligned. - Coaching vs. Funding
Shipe emphasizes the importance of staying in coach mode: guide your child’s decisions rather than simply funding them. Strategies like dollar-for-dollar savings matches for big goals (like buying a car) can teach responsibility and reward progress.