Adult children moving home are prompting financial advisors to tell parents to set firm payment rules so support does not derail retirement planning.
Dan Hernandez of Milestone Wealth Management said parents should require contributions for food, utilities or rent, then either use the money for household costs or save it for the child.
A 21-year-old New Jersey nursing student featured in the report works two jobs and gives part of her paycheck to her mother as a budgeting exercise aimed at financial independence within two years.
Hernandez also advised parents who provide larger sums to document them as loans with promissory notes, arguing that can protect the funds from creditors and reinforce that the money is not a handout.
The advice reflects mounting economic pressure and a tougher job market that are sending more "boomerang kids" back to their parents' homes.