It’s a reality many families face: adult children moving back home. Nearly half of parents say they currently have a child between 18 and 35 who has “boomeranged” back to the family nest. But here’s the catch — research reveals these adult children living at home often struggle more with one crucial skill: managing money.
This isn’t just about who pays the bills. A recent survey by financial services provider Thrivent found that only 46% of adult children living with their parents earned high marks from their parents for their budgeting skills. In contrast, 63% of those who never moved back home were recognized for their financial know-how. The numbers suggest that living at home again could be linked to weaker money management—a challenge that deserves attention.
Why adult children living at home struggle with budgeting
Why might this gap exist? The reasons are complex, but one significant factor is communication. Alex Gonzalez, a certified financial planner at Thrivent, points out that families often avoid talking openly about money when adult children live at home. Without those conversations, young adults may not develop the financial skills they need to succeed on their own.
It’s a double-edged sword. When parents don’t introduce financial literacy early on, the “foundational seeds” of independence aren’t planted. Then, if financial talks continue to be avoided once children are back home, it becomes even harder for these “boomerang children” to take control of their financial futures.
Reflecting on this, I remember when my cousin’s son moved back home after losing his first job. The family tiptoed around money issues, fearing difficult talks might cause tension. But in the end, avoiding honest discussions only left the young man confused and dependent, prolonging his struggle to stand on his own feet financially.
How to have productive money talks with adult children
Alex Gonzalez has personal experience navigating this tricky situation. When two of his own children returned home during the pandemic, he approached their transition differently. Instead of avoiding money topics, he invited open, constructive conversations focused on the positives of gaining financial independence.
He sat down with his kids and reviewed household bills like groceries and utilities, asking them to contribute their fair share. He also encouraged them to research local rent costs and save roughly that amount each month to prepare for a future move out.
This method worked for Gonzalez because it was about more than just collecting money. It introduced structure, accountability, and support during a challenging time. His kids learned firsthand about budgeting expenses and saving while feeling supported rather than pressured.
This approach can inspire any parent looking for ways to help their adult children develop essential financial skills. Clear conversations, realistic expectations, and small steps towards responsibility can make a big difference.
Building financial skills even when moving back home
Living at home as an adult doesn’t have to mean giving up on financial growth. In fact, with the right mindset and family culture, it can be a time to strengthen budgeting skills and prepare for long-term success.
If you’re a parent, consider how you talk about money in your home. Do you openly discuss bills, savings, and expenses with your children? Or do these topics get swept under the rug? Creating a family culture where money talks happen without judgment can build confidence and competence for young adults.
For those adult children back at home, this might be the perfect moment to ask questions, learn budgeting basics, and start building savings—even if it feels uncomfortable at first. Remember, developing financial independence doesn’t happen overnight, but every small step counts.
What has been your experience with money conversations at home? Have you or someone you know moved back in with parents and struggled with budgeting? Share your stories or tips below. Let’s spark a conversation that helps more families grow stronger together.