Re: Living with the 'Rents

Jaime asks the question, "What's with all of the 20 somethings living with their parents?"

So, I did a Google search to see if I could figure that out.

Among the most interesting articles was referring to a book titled, "The Boomerang Generation." Though the article is from 2005, the statistics are very interesting:

Myth: College graduation marks the beginning of domestic and financial independence.

Fact: 63 percent of U.S. college students plan to live at home after graduation.

Myth: Boomerangers are always a financial burden on their families.

Fact: About 50% of Boomerangers contribute to household rent and expenses.

Myth: Living at home is a sign of failure.

Fact: 25% of the Boomerang population is attending a post-secondary institution, and 45% are working full time (Mitchell, 1998).

Myth: The return home is a temporary, one-time event.

Fact: Some families reported kids who boomeranged three or more times. Half of young adults return within 30 months, often with a spouse or child back in tow. (Snyder, 2000)

Myth: Parents are always unhappy with having to change their lifestyle.

Fact: 73% of parents (Mitchell and Gee, 1998) reported being "very satisfied"

Myth: The Boomeranger phenomenon will decrease over time.

Fact: As Generation Y reaches adulthood, there will be more 20- to 34-year-olds in 2010 than in 2000, increasing the number of Boomerangers (US Census Bureau).

Many people in their 20's are still living at home. The most common reasons apparently are unemployment and student debt. In just the past 10 years, the average amount of student debt has more than doubled:

Also, starting salaries vary significantly. Some college graduates earn twice as much right out of the gate. I can't expect the person earning on the bottom side of the scale with with $30,367 in student debt, a car payment and a 70 mile round trip commute in to be living by themselves. The numbers don't add up!

I guess the bigger question is - why the pressure to live on your own? Why throw away thousands of dollars in rent money when you could be paying off debt? I lived with my folks until I got engaged and it was among the smartest things I did. It definitely depends on your family life and if you can tolerate the lifestyle with your folks the second time around, but getting financially secure for a few years in your 20's isn't something I'm too worried about.

The person I am worried about is the never-really-employed 30 something still living with their parents. That's a whole different story!