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How to financially support your boomerang child

Is your empty nest about to become full again? As we approach graduation season, some adult children may “boomerang” back home after a period of living on their own. They may be turning to their parents for financial support as they face the possibility of stagnant wages, student loan debt, and rising housing costs.

According to Thrivent’s 2022 Boomerang Kids Survey, 40% of parents who participated in the survey have adult children living with them. Parents revealed that increasing rent and home prices (33%) and needing financial support after graduation (26%) are some of the reasons their adult child is moving back home. This research was conducted in partnership with data intelligence company Morning Consult and
polled approximately 500 parents and 700 adult children between Apr. 30 – May 3.

You likely spent many years helping your child financially, so the prospect of doing so again may feel overwhelming. You’re probably also worried about how this will impact your finances – now and in the future. Below are some helpful pieces of advice from Thrivent as you think about how best to support your boomerang child.

1. Review your finances to figure out how much you can help. It can be easy to offer unlimited financial support to your child if you’re concerned about them, but this could be to your serious disadvantage. Review your financial situation, ideally with the help of your financial advisor, to figure out how much you can support your child without compromising your long-term savings goals, like retirement. Perhaps this means setting a timeline for your support or treating it as a loan, requiring your child to pay you back in increments. Following this approach can help you set parameters around what you can provide without depleting your reserves.
2. Follow a financial strategy. You’ll be in a better position to support your boomerang child if you’ve prepared for this scenario and taken steps to ensure your financial strategy accounts for the additional expense. Before your child graduates, meet with your financial advisor who can help you plan accordingly. This work often pays off – the Thrivent survey found that parents who have a financial strategy in place (75%) are more likely to be able to provide financial support to their adult child compared to 45% of adults who don’t have one.
3. Level set with your child and agree on a plan. According to the survey, 53% of adult children think their parents are financially equipped to support them living at home for an extended period of time. For some, this may be true, but not for others. That’s why it’s important to level set with your child early regarding the level of assistance you can provide – and for how long. Have a mutually agreed to plan that sets clear expectations. This will also help reinforce that your support isn’t a free ride.
4. Be a financial role model. When your child moves back in, model good financial habits that they can learn from and practice themselves. Whether it’s assembling a budget or paying off a loan, these are good opportunities to have a conversation with them about healthy money management practices.
5. Plant the seeds for financial independence. When your child is living with you, work with them on their personal budget and establish it as the foundation of their financial strategy. Have them identify their wants, needs and wishes, and develop a plan for funding those over time. This inspires a sense of accountability, putting them in the driver’s seat and empowering them to make the decisions that will hopefully improve their overall financial picture.

While having your child move back home may not be what you expected, there are ways to embrace it. You may ultimately find that it even strengthens your relationship. This can be a time to help you – and your child – achieve greater financial clarity, enabling lives full of meaning and gratitude.

About Thrivent

Thrivent is a Fortune 500 financial services company that helps build, grow and protect financial well-being through purpose-driven advice, investments, insurance, banking and generosity programs. Thrivent serves more than 2.4 million clients through thousands of financial advisors across the country and has more than $194 billion in assets under management/advisement (as of 12/31/24). Thrivent carries strong financial ratings from independent rating agencies - including AM Best, Moody's and S&P Global Ratings - which demonstrate the company’s financial strength, stability and ability to pay claims. Ratings don't apply to investment product performance and more information can be found on each rating agency's website. For more information about Thrivent, visit Thrivent.com or find us on Facebook, Instagram and LinkedIn.