The number of college graduates who move back home after finishing college is growing: 28% of recent college grads currently live with a parent. That’s up 8.8% in a little more than 10 years, according to a 2018 analysis of Census data by Zillow.
Kiplinger’s recent article, “Your Kid Is Moving Back Home? How to Make the Most of It,” says that most families want to build cohesion as members mature. However, it gets increasingly tough as families grow and disperse. When your college graduate moves home, use the opportunity to discuss and clearly state your family values. This can play a critical role in cohesion building—these core values serve as the foundation from which a family can form a shared purpose.
Without a shared purpose in a family, wealth often dissipates by the third generation. A shared purpose can unite, energize, and excite family members to do more, be more, contribute more, and behave in a certain manner. To prepare children, a unique and custom-tailored approach to their broader education is often helpful. This might include:
- Understanding their personal goals, hopes, and visions (“motivators”);
- Establishing their role and responsibilities in the family, community and society at large;
- Defining the effect they’d like to make and the purpose of their wealth;
- Learning to work collaboratively with others;
- Creating a financial decision-making process that is clear, well-thought-out and consistent;
- Understanding basic financial concepts, like investments, taxes, estate planning and credit; and
- Working with a trusted team of advisers.
Each of these components must be age-appropriate. Take advantage of the time you have with your freshly-minted grad. You should nistill your values and help prepare your children for their next move.
Look at their move back home (hopefully for the short-term) as a great opportunity. They’ll be out of the house and on their own soon enough.
Reference: Kiplinger (July 23, 2018) “Your Kid Is Moving Back Home? How to Make the Most of It”