“Boomerang” Generation and the Recession

Parents are starting to feel a greater pinch as more and more college graduates join the “boomerang” generation . The recession, along with the natural inflation that comes with tuition and rent, are squeezing college students and post-grads, sending them back home to mom and dad. An email I received from IBISWorld highlights this growing reality:

“We can expect to see a surge in the boomerang generation

[ages 18-24]

returning home and continuing financial dependency on parents due to a scarce and competitive job market,” said Toon van Beeck, senior analyst at IBISWorld. “This phenomenon has become more apparent in recent years, with higher costs in tuition and rent making transitioning into adulthood increasingly difficult. Thanks to the recession, many parents will get prolonged time with their kids until their debt is paid off or market conditions improve .”

For the most part, mom and dad pick up the bill. Additionally, it is worth noting that even married children are moving back in. The incident of foreclosures, job loss and other factors means that sometimes children, their spouses and their children are moving in further inflating costs.

Should you let your adult children have a free ride?

While it may seem cruel to charge rent and demand help around the house, the fact of the matter is that the costs of taking care of adult children (and sometimes their families) can become a burden on parents. The obvious solution is to ask for help with the cooking, cleaning and yardwork . Additionally, make it clear that you expect your adult children to look for jobs while they are staying with you. And, if they do have some sort of employment, you might ask them to chip in for utilities costs and groceries. After all, you are a victim of the recession as well.

Image source: Old Shoe Woman via Flickr