Look out Mom and Dad. Those kids you sent off to college? They may be coming back. You should move fast before they do. Move into an adult community that doesn’t allow them to live there.
Seriously, 26% of the Millennials in college plan to move back with you after they graduate. They hope to save money and pay off those college loans. A recent survey says that they owe somewhere between $10,000 and $50,000 – or more – on their student loans.
It will take them some time to pay off these loans. And doing so will delay them from buying their own home, getting married, starting a family and saving for their retirement. Most don’t expect to have their loans paid of and have enough saved until they turn 35.
And this is not something new. Nearly half of the Millennials that have graduated college had moved back in with their parents. Although probably nobody is happy with the idea, most everyone thinks they short term sacrifice is financially a good idea. But it’s only a good idea if they pay off their debts, save and invest the money they would otherwise spend on rent and other living expenses.
The majority of these graduates think that the money spent on their education was well spent, but about one third don’t think the money spent for their education will ever be worth the money spent.
While many of the Millennials think it’s embarrassing to still live at home, they recognize that it’s a necessary evil that they must bear in order to achieve their long term financial goals.
As for us, two of our kids came back to live with us after college. They made our lives a living nightmare. For starters, they lived in a different time zone. Finally we gave them a down payment, furniture and got them a condo and a mortgage.