One-half of young millennials who are enrolled in college or who intend to go to college plan to move back home after completion, and a majority of parents are ready and willing to accept them, according to a new survey conducted by the Harris Poll on behalf of TD Ameritrade.
And when moving back in with their parents, these young adults are not just thinking about a quick stop. In fact 31 percent of young millennials move back for two years or more, with more than half (56 percent) saying their return home will last at least a year or longer. And this time around, the stay will likely be rent-free. However, 38 percent of young millennials expects to pay an average of $486 a month while living at home, the survey indicated.
One thing though, they might want to move out by the age of 28. On average, that’s when it’s considered embarrassing to live with your parents, both young adults and parents agree, the poll said.
With the rising costs of student debt and housing, these young adults are looking to save money as they focus on building their lives and careers. The survey found that nearly one in three young millennials delay moving out of their parents’ home, along with delaying other milestones because of student debt.
Forty-seven percent said student debt has interfered with them buying a home; 40 percent said they are unable to save for retirement; 31 percent said they are forced to live with their parents; 21 percent said it has delayed them getting married or having a civil ceremony; and 21 percent said they have delayed having children because of their debt.
The survey also touched on what age parent respondents expect to become an empty nester. And while 82 percent of parents are welcoming of the children coming back home, they indicated that age 49 is a good time to have the children out, and 60 percent agreed that being an empty nester would be more exciting than depressing. Men (70 percent) are more excited about this change compared to 53 percent of women.
Empty nesters plans include traveling (65 percent), pursuing new passions/hobbies (40 percent) and focusing on retirement savings (40 percent) when their children move out.
Parents can take comfort in knowing that today’s young adults plan to pay it forward, according to the poll. It noted that some parents may need to help support their children for longer than previous generations, but the vast majority (81 percent) of Gen Z and young millennials expect to help support their parent(s) financially and/or provide housing for them in their older age.
Christine Russell, senior manager of retirement and annuities at TD Ameritrade, cautions that parents’ finances most likely will be impacted by young adults moving back home for more than two years. “And while it’s heartening to see that these young adults are willing to take care of their parents in their time of need, the parents should take a close look at how their adult child moving home will affect their finances and retirement, and plan accordingly,” she said.
The survey, which included 3,054 U.S. adults and teens ages 15 and older, was conducted online, within the U.S. by the Harris Poll, on behalf of TD Ameritrade from February 28 to March 14.