Advisors Urge Ground Rules for Boomerang Kids as 1 in 5 Parents Cut Retirement Savings
Updated
Updated · The Sun Newspapers · Aug 5
Advisors Urge Ground Rules for Boomerang Kids as 1 in 5 Parents Cut Retirement Savings
2 articles · Updated · The Sun Newspapers · Aug 5
Summary
Half of parents financially supporting an adult child say it is hurting their own finances, and 1 in 5 would reduce retirement contributions to keep helping, according to a Thrivent survey cited by Bloomberg.
Advisors say parents should set terms early as more young adults move home amid economic pressure and a tighter job market, with the share living with parents back near Covid-era peaks.
Dan Hernandez of Milestone Wealth Management told WPVI parents who can afford it should save a child's household contributions and later return the money for a home down payment or other financial base.
He also recommends documenting large transfers as formal loans with promissory notes rather than gifts, giving parents flexibility to forgive the debt later while adding protection and accountability.
In Voorhees, New Jersey, Dana Galiano has her 21-year-old daughter Bella turn over part of each paycheck while covering some bills, using the arrangement to teach budgeting and target independent living within about two years.