A large number of Generation Y is still living at home with mom and dad, in an effort to save for the future.
While this means these adult kids will have more money in their bank accounts to buy a home and start a family, it also puts a strain on Mom and Dad’s savings. And they still have their own future to plan for.
While I have heard many people say that Mom and Dad claim to be more than happy to help out their adult children, results show that everyone involved in these situations is simply avoiding the truth.
The truth is… utility bills are higher, food bills are higher, and the parents are prevented from downsizing in an effort to save more money for retirement and future health issues.
Now, if you are the adult child who is living with your parents, it is not my intention to step on your toes or to give you a guilt trip. What I am trying to point out is that someone’s money is paying for your comfort, food, and shelter, even if it is not yours.
And the fact of the matter is, by helping your parents go through their retirement money now, you may very well find yourself paying for their elderly care out of your own pocket later.
When your parents are elderly and most needy — after taking care of you well into your 30’s — the tables will eventually turn and you will need to take care of them. This may mean moving them into your home. This may mean paying for a nursing home. This may mean paying for very expensive assisted living facilities.
I strongly believe that living with your parents now will cost you more later. However, if you don’t mind footing the unpredictable bill for your parents in their later years, and they don’t mind relying on you, and you have agreed to this in advance, then you can forget you ever read this.
I have been a certified tightwad striving for financial freedom since I became pregnant with my first child — and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future — which will include sending 2 kids to college and early retirement.