Are Your Adult Children Moving Back Home? Here’s How To Make It Work

Due to financial pressures and personal events, 46% of parents say their adult children have moved back home. Here’s how to navigate the potential ‘boomerang burden.’

It’s a financially challenging time to be a young adult.

In a recent 10-country survey of more than 10,000 young people aged 18–34, EY found that 87% desire financial independence and 60% still live with their parents.

Separately, Intuit’s 2025 Prosperity Index found that the cost of living is the biggest money stressor for young people, worrying 97% of respondents. Sixty percent would feel more confident if they had more financial education, but it wasn’t covered in school.

Nor is it just young people feeling the strain. Recently, Thrivent’s Boomerang Kids Survey indicates that parents are more likely than ever to provide temporary support. Fully 46% of parents said their adult children have moved back home, potentially creating a ‘Boomerang Burden’ with long-term financial consequences.

“For most parents, allowing their children to move back home is about love and support—but that generosity can come at a cost,” says Alex Gonzalez, Thrivent Financial Advisor. “Thrivent’s survey found that nearly four in 10 parents providing short-term support to adult children report it’s impacting their long-term savings goals—like retirement—and short-term savings goals—like vacations.”

Gonzalez, whose own three adult children have boomeranged back home, has some advice for surviving and thriving through a potentially challenging time for everyone involved. Here’s what we covered.

The financial punch

The biggest reason young adults are moving back in with their parents is economic. “Housing costs are still the number one reason adult kids are moving back home—32% say it’s the main driver,” says Gonzalez. “However, this is notably down from 50% in 2024, likely thanks to rent prices cooling off a bit .”

But housing isn’t the only challenge. The rising cost of everyday essentials is hitting many young workers hard (30%). Another significant factor is personal events, such as divorce and separation (20%).

Thrivent found that for many parents, supporting adult children has a negative effect on their long-term savings goals like retirement (38%) and short-term saving goals like vacations (39%). Amid current economic pressures, many parents (almost 45%) have either withdrawn or scaled back financial assistance to their children.

Opening the door

For those opening the door to their adult children, strong communication is a big factor in a successful move-back. “It’s cliché, but communication is key,” says Gonzalez. “Concerningly, Thrivent’s survey found that 60% of young adults say their parents have not discussed the financial impact of supporting them a second time.”

Staying quiet on this issue can be a huge mistake, he warns. “Not only does it potentially strain parents’ finances, but it can also hold young adults back, leaving them unprepared to manage money on their own long-term.”

“Before your child moves back home, have a candid conversation about expectations,” says Gonzalez. “Will they chip in for utilities or the internet? Or will they live rent-free with the understanding that those funds go into savings each month?

“Being upfront from the start helps avoid confusion later—and ensures you’re not just offering short-term care and support, but helping set them up for long-term success.”

Being there in the transition period

Gonzalez, whose three adult children have moved back in and out again, stresses that he and his wife were intentional about framing it as a transitional phase. “It was a proactive step forward rather than a fallback,” he says. “We didn’t charge them rent in the traditional sense. Instead, we asked them to allocate that same amount of money into a dedicated savings account earmarked for a future home purchase.

“This approach gave them structure and a sense of financial purpose. It also helped them visualize a clear path toward independence.”

Being there for your adult children in the transition phase of their life journey should be about more than providing financial support. Your child may also need to enhance their financial literacy. Thrivent found that while 63% of children who never returned home received an A or B grade on their budgeting skills, only 46% of ‘boomerang kids’ received good marks.

“That deficit of financial knowledge is significant,” says Gonzalez. “From my experience, it’s clear that temporary financial support is just the start. What really moves the needle is teaching the principles behind the support—how to save, how to budget, and how to plan ahead.”

When Gonzalez’s kids moved back home, he didn’t just give them a place to live—he gave them tools to succeed, including:

• Money talk : It’s powerful to discuss financial habits and have conversations that mirror real-world expenses. “For example, we had them track their monthly spending and create savings goals based on actual costs in our area.”
• Personal contributions : “They also contributed to household expenses, including groceries, utilities, and basic essentials. This wasn’t about reimbursement; it was about building awareness,” says Gonzalez. “When our kids realized how expensive detergent was, it turned into a teachable moment.”

Today, says Gonzalez, his children are fully employed, contributing to retirement accounts, managing their own health insurance and phone bills and saving with purpose. “That’s not an accident; it’s the result of deliberate conversations and expectations.”

Enjoying your boomerang kids

Can you enjoy having your kids home again, even if it’s due to necessity? Yes—and setting expectations for all parties at the start can go a long way toward making the experience enjoyable for everyone.

“Every family is different, so it’s important to consider your unique situation when setting ground rules,” says Gonzalez. “When adult children move back home, chances are, the bills will go up. Figure out a way to share costs for little things like laundry detergent, streaming services, or snacks.”

It may also be helpful to lean on a financial advisor, he says. “They can help you navigate the situation and understand the tradeoffs between your long-term financial goals and the short-term support you want to provide your children.”

One thing Gonzalez often shares with his clients in this situation is that while having adult children move back home may not have been in the original plan, it can be an incredibly special time. “Make the most of it by having a few weeknight dinners together or finding a show everyone likes,” he says.

“Before you know it, they’ll be moving back out again.”

By Mark C. Perna, Contributor