They’re baaack! You thought your adult child had left the nest to start a life of their own. But, after a period of independent living, they’ve returned home — to stay. Now you’re one of the many parents globally who’s living with a boomerang kid.
Nearly half (46%) of the parents surveyed for Thrivent’s 2025 Boomerang Kids survey say their adult children have had to move back home at some point. A third of respondents said housing costs were the problem, while for one in five (20%), their children’s divorce or separation from a partner was the culprit. According to Bloomberg, the main reasons why adults aged 18 to 29 are living with their parents are to save money, take care of older family members, and because they can no longer afford to live on their own (2).
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The stigma against adult children living at home is also lifting. These days, it’s normal. If you feel positive or somewhat positive about your adult child living with you, 74% of others in your situation agree, according to Pew (3).
And with the U.S. economy in an uncertain state — Deloitte predicts rising unemployment, stalling wages and more inflation in 2026 — hard times may have your fledglings making at least a temporary return to the nest (4).
While parents invariably want to help their children, doing so can create a financial burden and even jeopardize their nest egg. To make it work, you need to set clear boundaries, encourage financial independence and prioritize your own retirement.
1. Have open conversations
When an adult child moves back home, consider whether you would like to commit to intergenerational living, or set a timeline to revisit the issue and discuss whether it’s time for your child to move back out. This could be a set time, such as six months, or based on an event, such as your child finding a better-paying job, having their own children reach school age, or saving enough for a down payment on a place of their own.
It’s a good idea to have a written agreement in place rather than make assumptions. This agreement could outline household rules for your adult child — while still acknowledging they’re a grown-up capable of making their own decisions.
For example, a curfew would likely be inappropriate, but you may want to set “quiet hours.” It could also outline expectations for shared responsibilities such as cleaning and other chores, or even driving parents to medical appointments.
Your agreement could outline the financial contributions the child is expected to make, such as helping with groceries and utilities or paying rent.
The organization Generations United has many resources for families with multiple generations living under the same roof. Having adult children home with you as you age may be seen as a burden or a failure in popular culture, but for some it’s an ideal arrangement. Improved physical and mental health, more support for aging family members with appointments and everyday tasks, and closer bonds between family members are just some of the benefits (5).
2. Encourage financial independence
If your child is living with you for financial reasons, now is as good a time as any to start educating them about money management. Help them set financial goals, create a plan to achieve them and come up with a realistic budget to get on track — while still meeting the financial obligations to the household that they’ve agreed to.
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Instead of enabling your child with a "free ride," you can be an advocate and a mentor by teaching them how to foster their own financial growth, Thrivent financial consultant Boone Jackson says (6).
3. Prioritize your retirement
If you give your kids a free ride, you could end up jeopardizing your own retirement. Of parents who provided financial support to their adult children, about one in three (36%) “hurt their financial situation at least some,” according to a 2023 survey by Pew Research (7). So it’s important to assess whether you’re financially able to help your children and be clear about how it will impact your finances. It’s okay to say no if you’re unable to help.
Aside from setting boundaries and creating a written agreement, you may find it helpful to track your expenses once your child moves in so you know how much extra it’s costing you. You can use this information to help set or amend your agreement. It will also help you determine how much extra savings you might be able to find once they move out again.
You may need to catch up on savings once they’ve left. If you’re still working, start by maxing out your employer-sponsored 401(k) or increase your contributions to other retirement savings plans or investments. If you’re over 50, try to take advantage of allowable catch-up contributions.
It’s increasingly common for adult children to move back home at some point. If it happens to you, you can consider working with a financial planner to assess how much this could be setting you back, so you can adjust your plan accordingly and protect your retirement. You may also want to speak to an accountant about the potential tax implications of gifts or loans that you give your children. Do this, and your nest egg will thank you.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Thrivent (1); Bloomberg (2); Pew (3); Deloitte (4); Generations United (5); Thrivent (6); Pew (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.