Xian Horn, a freelance writer in her late 30s, lived with her parents in New York during the pandemic to save on food and rent. That allowed her to finally pay off the growing amount of credit card debt she accrued from eating out and other living expenses, which added up to about $1,000 a month when she was only earning $1,000 to $1,100 some months, and sometimes nothing at all.
“Up until six months ago, I was at a deficit every month,” she said. “This decision really saved me.”
Financial Security
While moving back with parents has been a lifeline for some, others are finding the current cost of living makes it hard to leave.
Feeling lonely and looking to save on rent, Tory Gervay, 31, moved back in with her mom in Sydney in 2019. She changed industries, put some money aside side and is now looking to move out. But the high housing prices in Australia mean she can’t afford to move for at least a few more years.
In Australia, 26% of households had an adult child living at home, according to a 2020 Finder survey. Rental prices rose 13% year-over-year, according to July data from SQM Research, and home values were up 17%.
“I have no idea how I could possibly afford any of it,” she said. “I told my mom, ‘I’m going to be living with you forever.’”
While moving home can make sense financially, there can be a stigma attached for adults. Ryan Nicotra, 32, moved in with his parents last year when he lost his job as a university fundraising manager in Baltimore.
Spending a year at home with his family in rural Maryland, he was able to feel financially secure for the first time in his life. He saved enough for an emergency fund and found a new job without the stress of stretched finances. Now living on his own in nearby Westminster, Maryland, he acknowledged that giving up his city life was difficult.
“I had an idea of what life would look like, and giving that up was hard,” he said. “But I don’t regret it: It was the first time in my adult life I had real financial security and abundance.”
This article was provided by Bloomberg News.