As the percentage of young adults who live with their parents has grown in the U.S., the jury is still out on whether this trend is positive or negative.
From 2010 to 2022, the percentage of young adults aged 18 to 29 who live with their parents grew from 44% to 50%, peaking at 52% in the midst of Covid in June 2020. Meanwhile, more than a third (36%) of adults surveyed say that young adults living at home is bad for society, according to Pew Research. Only 16% said it’s good for society.
So, we were curious: what do the parents whose adult kids are living with them think about it? After all, they’re the ones experiencing the effects—good and bad—firsthand.
With this in mind, BOK Financial® conducted a survey of 2,000 parents of children in their 20s who live at home to determine what this experience has been like. We’ve uncovered some interesting trends.
For instance, of these respondents, a majority recall their child asking to move back in (69%) because they couldn’t afford to live on their own (42%) or wanted to save money (33%).
The survey also revealed that more than half of adult children live at home because of the current economic climate (52%). And 85% of survey participants are reportedly delighted to have their adult kids back home.
“They’re often living at home to save up for their next step of independence and having them in your house gives you a chance to cheer them on in a safe environment,” said Leasa Melton, manager of product strategy for BOK Financial.
Taking a toll on parents
While 45% of the parents surveyed said that their child moving back in has improved their relationship, having their adult children at home is taking a toll on other parents.
- 27% of those surveyed admit they weren’t financially prepared to have their child live with them in their adult years.
- 29% shared that their child rarely or never contributes to the household financially.
- 34% have felt financial strain over the past year.
Moreover, one in five said having their adult child live at home has had a negative impact on their own financial planning or retirement plans (19%).
“As trends shift to more young adults either continuing to live at home into their twenties or coming back home after college, parents may need to plan differently,” Melton said. “Having an additional person living under your roof continues to cost money. I’d encourage parents to consider ways their young adult child can contribute to household expenses while also focusing on saving money as they work toward their own independence.”
Concerns about independence
Beyond their own financial woes, 45% of parents surveyed expressed worry about their child’s ability to be financially independent.
Where’s this worry coming from? Thirty percent acknowledge that their child is in a worse financial situation than they were at their age, leading a majority of parents to have doubts about their kids being financially prepared to leave home at this time (56%).
“If you have adult kids living at home—which isn’t uncommon nowadays—it’s an opportunity to model good financial practices while encouraging them to save diligently,” said Melton. “But, like everything else in parenting, it’s a balance between letting them learn and helping guide them.”
Parents are seeing the need for this balance, too. While their adult children have been living with them, many parents in the survey said they have emphasized teaching them about financial matters, including budgeting (71%), how to save money (57%), paying down debt (53%) and investing (46%).
“Children might not always pick up on financial lessons when they are young," said Melton. "But as they gain independence, living at home provides another opportunity to help them establish good financial habits, which is a win for both parents and their adult children.”
See more survey results:
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