WFMY -- Thousands of students across the Triad earned their college degree this weekend. While it was a proud moment for their parents, after all the pomp and circumstance, what's next?
More parents are finding themselves with their new college graduates moving back in.
According to the Wall Street Journal, parents are finding themselves stuck caring for children much longer than they planned, with no exit plan in sight. In the long-run, it could damage their own financial health and retirement savings.
Financial advisers told the WSJ, hosting an adult age child back at home can cost between $8,000 and $18,000 a year, depending on how much parents are shelling out for extras like travel and entertainment.
According to the most recent U.S. Census Bureau figures, 22.6 million adults between the ages of 18 and 34 were living at home with their parents in 2012. That's about 32% of all people in that age group. And it's up from 18 million, or 27%, a decade ago.
But experts said, there are many ways parents can protect their finances if their kids move back home.
Experts told the WSJ parents need to be firm with their kids. They also had some tips for parents.
Before a grown child moves back home, parents should set up a financial plan, laying out what the child is expected to pay for, such as food, rent or utilities.
Also, one expert said parents shouldn't let their kids live with them longer than a year and a half, because the longer they live with them, the harder it is to leave. That needs to be established right away.
Parents also need to establish the expectation that their child will find a job. If they can't get a job in their chosen profession immediately, they need to find a part-time job to pay for expenses at the very least.
Experts also said parents should never co-sign for a credit card for their adult child. And they should avoid taking on any debt to help out their with car loans or other expenses.
Sometimes parents and children have trouble making and sticking to a budget and exit goals. Experts said, in worst-case scenarios, family therapy is an option to help kids become self-sufficient.
Wall Street Journal