When Adult Children Come Home

Whatever the reason, the chances are very real that at some point between the ages of 18-34, an adult child may move back home. In fact, so prevalent is this phenomenon that in recent years more than half of recent college graduates expected to live with their parents after graduation and nearly one in four said that their time back home could last for a year or more. ¹

Money Matters

Kids are expensive and, perhaps, even more so, adult kids whose tastes and needs aren't pint-sized anymore. Unless you can, and are willing, to foot the expanded household bill you'll need to draw up some financial parameters. Acting as landlord may also help your child develop the responsibility they will need when truly out on their own. You could even take this opportunity to help your child learn about budgeting.

Some of the items that could be included in a financial agreement are:

• Rent (Consider including length of lease and penalties for late payment.)
• Utilities (Don't forget that an extra body, another television, computer, etc., in the house can increase the cost of such utilities as water and electricity.)
• Food (In addition to cost, consider food preparation, shopping and clean up.)
• Transportation (If they don't have their own vehicle)

Respect the new relationship

As you discuss your new living and financial arrangements, family counseling experts suggest that you keep in mind the new basis for your relationship. A son or daughter will never change from being a child to his or her parents - that is just a fact of life - but the adult relationship shouldn't mimic the days of true childhood. Treating adult children as responsible adults by placing upon them the same responsibility and independence you would a non-relative, can go a long way toward making the relationship work, say the experts.

People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.