Adult children returning to the nest after college? | Economy | NewJerseyNewsroom.com -- Your State. Your News.

newjerseynewsroom.com

Friday
Jul 25th
  • Login
  • Create an account
    Registration
    *
    *
    *
    *
    *
    REGISTER_REQUIRED
  • Search
  • Local Business Deals

Adult children returning to the nest after college?

goodmanMarina071511_optTips for how to cope with the “Boomerang Generation”

BY MARINA GOODMAN, CFP®
COMMENTARY

One of the casualties of The Great Recession has been parents’ much-anticipated empty nest. “Susie can’t get a job after graduation and she’s coming back home until she gets on her feet.” It’s a refrain that is becoming all too familiar across the U.S. “Reoccupy Elm Street” is in full swing, and it’s up to you and your spouse to shore up your defenses. On the line? Your own financial security and long-awaited plans for retirement.

Establish Firm Ground Rules

On one hand, you want to help your child. On the other, you need to keep an eye on your own wallet. You also want to empower your child and not contribute to his helplessness. If your child is over 18 and comes back home once he’s done with his education – try to dispassionately assess his situation and your own — which can be difficult. However, if you want to reclaim your empty nest, it’s critical to lay down some important guidelines sooner rather than later:

Explain to him in no uncertain terms that the rules have changed. He may be your child but no longer a kid and you expect your child to behave like the young adult he is. Whenever he was younger, it was fine for you to support all his financial needs. However, this is no longer the case. He now needs to pull his own weight in terms of contributing to the household — both financially and logistically, to whatever degree he can.

Encourage your child to get a college degree, if she doesn’t have one, or appropriate vocational training. For all the dismal employment headlines, one fact remains crystal clear: people with college degrees have an unemployment rate of 4.0 percent, versus 8.7 percent for those without a degree.* If your child is entering college, take an active role in helping her select a course of study and degree choice. Make sure it is something marketable. Nursing — yes. History of basketweaving — no.

Make it clear that your child is expected to work — either at a job, finding a job, or educating herself to get a job. Even if your child can’t get her dream job now, she should look for some kind of job to pay for her own expenses including gas, entertainment, etc. If your child is employed, but wants to live at home because she has student loans, help her make a savings plan, as well as a payment plan, for the debt. Giving the gift of a financial plan will save you money in the long run.



 

Add your comment

Your name:
Subject:
Comment:

Follow/join us

Twitter: njnewsroom Linked In Group: 2483509