If you have millennial-aged children, don’t get too attached to your empty nest. It may not last. According to a study from the Pew Research Center, 15 percent of millenials (25-to-35-year-olds) lived at home in 2016. And not only are more millennials moving back home, they’re also staying longer. Among the millennials who lived at home in 2016, 91 percent said they lived there in 2015 too. If you’re faced with an adult child moving back home, here are some ways to set limits.
From the start, lay everything out in the open. Discuss, rent, utilities and everything else you might want to have your millennial pay for while they live at home. Be specific with the numbers. Try to get an outline on how long they think they’ll live at home, and a savings plan to help them move out. The more detailed your discussions are in the beginning, the less likely problems will arise down the road.
As Money reports, you don’t want your millennial living rent free, but you also don’t want to charge them so much that they can’t afford to move out. You’ll likely want to set rent at a couple hundred dollars per month. That way they’re accountable while also being able to save some cash, and you’ll offset some of the increased cost of utilities and groceries.
Don’t Go Overboard
It can be difficult to say “no” to your adult child while they’re living at home. However, you must. According to a study by Merrill Lynch, more than 70 of parents with kids living at home said they’ve prioritized their children’s needs instead of their own retirement savings. Don’t let that happen to you. Once you set the boundaries, stick to them. When your kid finally does move out and retirement is on the horizon, you’ll be glad you did.