(Photo by polkadot_photo on Shutterstock)
NEW YORK — The traditional trajectory of children leaving the nest may be taking a detour, but parents seem to be enjoying the scenic route. A surprising 85% of parents report being delighted to have their adult children back home, according to a new study.
The study, commissioned by BOK Financial and conducted by Talker Research, surveyed 2,000 parents of children in their 20s who are currently living at home. It paints a picture of a generation of young adults grappling with financial independence in a challenging economic landscape, and parents who are largely supportive – albeit not without some strain.
Results show that 42% of parents had children who initially moved out, with the primary reasons being to experience living independently (41%), attend college (29%), or live with a partner (26%). However, economic realities soon brought many of these young adults back home, with 69% of parents recalling their child asking to move back in. The main catalysts? An inability to afford living alone (42%) or a desire to save money (33%).
Even for those who never left, finances play a crucial role. Half of all parents surveyed (52%) cited the current economic climate as the reason their adult child still lives with them. Convenience (32%) and a desire to be close to family (25%) were also significant factors.
While this arrangement has improved relationships for 45% of families, it’s not without its challenges. A quarter of parents (27%) admit they weren’t financially prepared for their child’s extended stay, and 29% report that their child rarely or never contributes financially to the household. This has led to major financial strain for 34% of parents over the past year, with one in five (19%) saying it has negatively impacted their own financial planning or retirement plans.
Despite these challenges, parents remain supportive. Leasa Melton, manager of product strategy for BOK Financial, sees an opportunity in this situation. “If you have adult kids living at home — which isn’t uncommon nowadays! — it’s an opportunity to model good financial practices while encouraging them to save diligently,” she said. “But, like everything else in parenting, it’s a balance between letting them learn and helping guide them.”
Parents are taking an active role in their children’s financial education, with 66% teaching finance-related lessons during this time. The focus has been on saving money (77%), budgeting (71%), paying down debt (53%), and investing (46%).
However, concerns persist. Nearly half of parents (46%) worry about their child’s ability to be financially independent, with 30% acknowledging that their child is in a worse financial situation than they were at the same age. A majority (56%) have doubts about their kids being financially prepared to leave home at this time.
Looking ahead, parents estimate their adult children will remain at home for another 16 months on average, though a third (32%) are uncertain about the duration of this arrangement.
Melton remains optimistic about the potential for growth during this time: “Children might not always pick up on financial lessons when they are young,” she noted. “But as they gain independence, living at home provides another opportunity to help them establish good financial habits, a win for both parents and their adult children.”
As families navigate this new normal, it’s clear that the path to independence for many young adults is longer and more winding than in previous generations. But with supportive parents and a focus on financial education, there’s hope that these boomerang kids will eventually take flight on solid financial footing.
Survey methodology:
Talker Research surveyed 2,000 parents of kids in their 20s who live at home; the survey was commissioned by BOK Financial and administered and conducted online by Talker Research between June 12 and June 20, 2024.
