Kids Moving Back Home? Time to Write Up a Lease

The good news is, you don’t have to worry about empty nest syndrome. The bad news? Your kids could walk all over you. So have a talk, and put your expectations in writing.

(Image credit: Getty Images)

In the midst of this COVID crisis, one fallout is that today’s Millennials and adult Gen Zers may not be able to make ends meet, and they may be moving back home with Mom and Dad or even with Grandma and Grandpa. According to Zillow, as the pandemic struck, there were 32 million adult children who moved back into their parents’ or grandparents’ homes as of April. It was the highest number on record. More than 80% of those who recently moved back in with their elders are from Gen Z, those who are currently up to about 25 years old.

In many cases some of these young adults are part of the gig economy, which suffered great layoffs during the pandemic. While this move-back-home trend is almost entirely due to the pandemic, another factor is this generation’s vast student debt burden. In addition, even though technically we are pulling out of the new recession and jobs are more plentiful, your Gen Z child may not be able to find a decent-paying job right off the bat.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Neale Godfrey, Financial Literacy Expert
President & CEO, Children's Financial Network Inc.

Neale Godfrey is a New York Times #1 best-selling author of 27 books, which empower families (and their kids and grandkids) to take charge of their financial lives. Godfrey started her journey with The Chase Manhattan Bank, joining as one of the first female executives, and later became president of The First Women's Bank and founder of The First Children's Bank. Neale pioneered the topic of "kids and money," which took off after her 13 appearances on "The Oprah Winfrey Show."