I hate jokes about young people “failing to start a business” because they live with their parents. If you don’t live under a rented roof, you are often unfairly characterized as being economically underdeveloped. Never mind that the cost of living is very high in some areas and independence is difficult. strangle their short-term and long-term goals.
But would you be surprised to learn that a significant percentage of people in their 20s live in their parents’ home not just to save money for themselves, but to help out at home? their parents?
up to date investigation On the economic well-being of American households, the Federal Reserve reported that 33 percent of adults ages 22 to 24 said they live at home to provide financial assistance to their parents. Among those aged 25 to 29 who live with their parents, the figure jumps to 42%. This is an increasing trend among younger groups. 2017Seventeen percent of adults aged 22-24 said they are staying at home to provide financial assistance.
In the 10th Annual Fed Survey on Household Economics and Decision Making, conducted in the fourth quarter of last year, participants were able to: Please select multiple answers regarding housing conditions. It should therefore be noted that most (90%) of adults in their early twenties (ages 22-24) lived with their parents to save money. Between the ages of 25 and 29, the percentage drops to 87 percent.
The Fed noted that 60% of adults aged 30 to 59 living with their parents said it was to provide financial support.
but for For young adults just starting out, caring for aging parents with limited resources can be a heavy burden. If you’re in this category and you’re feeling the pinch, here are five things you should and shouldn’t do.
Ask your parents for financial information
The younger you are, the harder it can be to ask your parents about their financial situation. Role reversal can be uncomfortable. However, it is necessary to know in order to assess how long assistance will be needed.
if they need you If they need help paying their mortgage each month, they probably can’t afford a house anymore. Perhaps it’s time to relocate or downsize. Alternatively, living at home and sharing the costs may be a long-term plan. Either way, talk about it.
Communication is very important when you are dependent on each other. Start the conversation by sharing your budget. I hope that when you become transparent, they become transparent too.
If I were to supplement their budget, I would have the right to know the full extent of the shortfall. How long do they expect help? What happens if I move? how will they survive? I need answers to these questions.
As one caregiver told me, it’s important to discuss your financial situation with your parents before a crisis hits. Maintenance is always cheaper than cleaning.
If you live at home and witness your parents being reckless with their money, it may be time to let them grow up. Cut the cord. Or at least decide how much you can help and only donate that amount.
Helping parents is good. Enabling bad financial behavior is not.
If the pressure is too much for you to handle on your own, seek therapy.
don’t go into debt to help
Mind you, don’t risk your own finances by going into debt to help your parents. Increasing your credit card debt or co-signing a credit card loan may not be doing you any good.
Don’t let debt hurt your future financially. Don’t let debt get you down and ultimately hinder your ability to start a family of your own. This is difficult because you feel the weight of the responsibility, but please only do what you can afford.
Don’t sacrifice your savings goals
Sacrificing retirement savings and financial goals to support my parents reminds me of the instructions given by flight attendants just before takeoff.
Airline passengers are always instructed to put on oxygen masks first, even when traveling with children.
At first glance, this seems selfish.
But if you are out of breath and faint, you cannot help others.
We have a network of professionals who can help you manage your parent’s care. AARP is a great place to find information about such services.go to aarp.org Click on the “Care” link.
There is also an elder care locator (eldercare.acl.gov or 800-677-1116). It is a nationwide service established by the U.S. Administration on Aging that connects older adults and their caregivers to public and private services. Once on the site, click on the “Support Services” link.
Research financial aid programs. For example, my grandmother was eligible for a property tax discount. But I had to pester her to fill out her paperwork. She was worried that the city would somehow bring her back to her home. In the end I convinced her that it would help us both if her property taxes were reduced as her income is limited.
National Senior Citizens Council BenefitsCheckUp tool (benefitcheckup.org) They can help connect you to programs that can help pay your parents’ prescription drugs or help with rent and utilities.
