Generation Y the Boomerang Kids

The “Boomerang Generation” is a word created by the media to describe the current generation of young adults (18-35) who live at home and are not financially independent. They are the sons and daughters of the Baby Boomer generation that have moved back home to live for multiple reasons. This pattern appears to be cyclical and determined by economic conditions. Monsters’ 2009 Annual Entry Level Job Outlook reports 40% of graduates are living with their parents and 42% from 2006.

Economic trend

The Census Bureau recently released data reporting that 70% of singles ages 20-29 lived with their parents in the 1940’s. From the 1940’s our country began to recover from the Depression to a more financial independent lifestyle that the Baby Boomers enjoyed. Our economy peaked and then regressed due to the economic downturn. Steven Ruggles history professor at the University of Minnesota states, “Real wages for young people reached their peak in 1973. They were more independent because they could afford it.”

Michael Rosenfeld a social demographer at Stanford University and author of The Age of Independence reports that 39% of single women and 46% of single men 20-29 lived with a parent in 2005. Both specialist agree that there is a historical increase in “boomerang kids” but it’s small scale in comparison to statistics from the depression.

Renegotiate the relationship

Adult children are reporting several reasons for moving back into their childhood home. The number one concern is financial debt due to the economic reasons that were related to layoffs, loss of job, no insurance, expired unemployment benefits, early widowhood, divorce, major health concerns and substance abuse. Each situation seems to be unique and complex.

Before parents allow their adult child to return home they should renegotiate their relationship, roles and establish new boundaries. First determine what constructive support is needed so that you don’t enable them to continue behaviors that are self-destructive or situations that created the problem. Next establish a financial plan together that may lower their standard of living but can create long-term financial freedom for them. Also, research the opportunities that are available to return to college and retrain. Finally, contact all state programs that might be able to provide financial support during this interim.

Parents need to dialogue openly about expectations of living at home. Adult children should be willing to contribute to household chores and have a timeline on how long they will need the help. Establish a cost for rent or a household bill they are able to pay. Helping the adult child should not interrupt or burden a parent’s financial planning for their own retirement. If the adult child is unwilling to follow the guidelines you have established you may need to seek professional help on what options are available to you. There should be a balance in helping yourself and helping others that you love.