The majority of parents have good intentions and openly take their adult children back home represents helping them handle a temporary situation to save money, reduce their debt or get a stable well paying job.
But if the returning adult child continues to remain beyond the time limit, the new situation can be much more than just a small inconvenience, health specialists claim.
Young adults who neglect to establish progress at their job, brush aside multiple opportunities they are presented with can negatively affect Mom and Dad's finances, postponing any arrangements to scale down and decrease retirement savings.
This puts further burdens on parents from the ages of 50s and up. So, you should understand the odds are very high that you're going to have less money when your adult child returns home.
If you're expecting your 20- to 30-something child to return home or you've had enough of them repeatedly returning every few months and want them to become more self-sufficient, here's what you should do.
Downsizing is the term for moving from a larger home into a smaller-sized home typically with less maintenance. For some people, this means a home with less land (grass, bushes, trees) to maintain or a home with less square footage and fewer unused rooms.
Downsizing occurs frequently for parents whose children are grown and left home. There is no longer a need for one or two spare bedrooms, being near to schools, or having a large yard. This group of homeowners commonly switches to a home that best suits their new lifestyle and for the rest of their lives.
The process is quite simple, you'll sell your home and move into a smaller home that costs less than your existing home. The proceeds from the sale of your current home can be used for living expenses, or a portion can be put into a money market account and instantly available for any investment opportunities that may arise.
This strategy may give you some flexibility if you buy the new home with all cash. You can also simply refinance your home, get a line of credit or apply for a reverse mortgage to help you. Each of these options sounds like a win-win.
The best thing to do is to figure out how much will be put down on the next home you're buying or the maximum amount you'll pay for rent, and how this will affect your monthly cost. Consult with an expert such as a financial advisor or estate planning specialist.
This puts further burdens on parents from the ages of 50s and up. So, you should understand the odds are very high that you're going to have less money when your adult child returns home.
If you're expecting your 20- to 30-something child to return home or you've had enough of them repeatedly returning every few months and want them to become more self-sufficient, here's what you should do.
- Establish expectations early.
- Make it somewhat uncomfortable by not having a spare bedroom.
- Don't allow it to repeat.
Consider downsizing your home
Downsizing is the term for moving from a larger home into a smaller-sized home typically with less maintenance. For some people, this means a home with less land (grass, bushes, trees) to maintain or a home with less square footage and fewer unused rooms.
Downsizing occurs frequently for parents whose children are grown and left home. There is no longer a need for one or two spare bedrooms, being near to schools, or having a large yard. This group of homeowners commonly switches to a home that best suits their new lifestyle and for the rest of their lives.
The process is quite simple, you'll sell your home and move into a smaller home that costs less than your existing home. The proceeds from the sale of your current home can be used for living expenses, or a portion can be put into a money market account and instantly available for any investment opportunities that may arise.
This strategy may give you some flexibility if you buy the new home with all cash. You can also simply refinance your home, get a line of credit or apply for a reverse mortgage to help you. Each of these options sounds like a win-win.
The best thing to do is to figure out how much will be put down on the next home you're buying or the maximum amount you'll pay for rent, and how this will affect your monthly cost. Consult with an expert such as a financial advisor or estate planning specialist.
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