Michele Carby Investigates: Are your Grown up Children pushing you into Debt?
‘Boomerang Generation’ Causing Mounting Debts in Family Homes
The ‘boomerang generation’ is putting unforeseen financial pressures on family homes, claim experts. At one time getting a university education meant that you were set up financially for a good life. Now that is not necessarily the case.
High rents, student debt, and failed relationships are all symptoms of why the boomerang generation exists. A recent study by a debt organisations found the following:
- Most children living at home are unaware of the true financial costs
- Most parents have at least one child living with them who is over eighteen
- Under half of parents charge their children rent
- Most charge around £150 per month. The average rent is £750.
- Around 80% of parents make no charge for food, and 60% still cook their grown up children meals
- It is not uncommon for grown up children not to make the leap to independent living until they are in their 30s.
This scenario is placing many parents in a situation of financial hardships with parents taking on loans to meet the costs.
What can I do to help my finances in light of the boomerang generation?
Many debt planners believe you should not be afraid to ask for higher rents and upkeeps towards living at home. This is a valuable lesson for your child to learn that things have to be paid for. Part of the problem is believed to stem from the way children have been brought up over the last twenty years.
They have been driven to school and clubs of one kind of another, and many have been given everything they want when they want it. This has resulted in a somewhat oblivious view of the costs of the real world.
Proper and Professional Financial Planning
As well as asking your grown up child to fork out a bit more on their upkeep, sound financial planning can help you cope with the demands of your boomerang child. There are numerous investment vehicles which can help you cope with the costs of your adult kids. The key aspect is to find the right one for you.
As an award winning financial adviser I can help you with your future financial needs which include taking care of your boomerang children. As well as this burden I can help you formulate a better retirement plan, making sure your insurances, pension, and wealth management is yielding the best possible returns.
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