PHOENIX — More than any other time in recorded history adult children are moving back in with their parents.
Between colleges going virtual and dorms closing last year to layoffs and furloughs, a lot of different reasons sent adult kids back home.
Valley financial advisor Stewart Willis from Asset Preservation Tax & Retirement Services has tips to make sure the move makes financial sense and doesn't turn into a failure to launch.
First, he says to clarify expectations.
Almost half of parents gave their adult children money during the pandemic to help cover food, car payments and other expenses.
Willis says before they move in, set clear expectations about if they'll contribute to rent, groceries or utilities. He also suggests setting a move-out date.
Second, he says teach financial independence.
Budgeting is hard right now but, he says sit down together and look at what can be trimmed.
Third, you should consider your own needs.
Willis says you can help but, don't neglect paying down your own debt and contributing to retirement. A recent survey shows that's exactly where 79% of parents got the money to help their grown kids.
"You have to know when to cut the umbilical cord, so to speak. When you create the habit of giving and giving and giving with no end in sightthat could be a habit that lasts a lifetime and that could put you in your own financial perril." said Willis.
Fourth, know when to seek professional help.
A financial advisor will teach all of you about money management. They have tools like budgeting worksheets to help. They can even be a mediator or sorts because Willis acknowledges these conversations are hard between adults.