Boomerang kids in 2025: Why young adults are moving back in with their parents

You likely started preparing for the financial impact of parenthood, from diapers to summer camps to college, before your child was born. However, many parents don't consider providing for their children financially once they reach adulthood. Yet for many American households, welcoming adult children, or "boomerang kids," back into the home is a reality with significant financial implications.

For many parents, this homecoming provides a gratifying season of connection with their adult children. But it can also trigger financial and emotional strain. Creating expectations around money for your boomerang kids can help make the transition back home healthy and rewarding for both of you.

A boomerang child is a young adult who returns home to live with their parents after leaving for college or otherwise living independently for a period. According to our 2025 Boomerang Kids Survey,^* 46% of parents report adult children aged 18-35 moving back home. These boomerang kids may be experiencing the financial stress of unemployment, getting back on their feet after a setback or trying to save for the day when they finally move out for good.

There are many reasons young adults may decide to move back home and accept support from their parents. Some face financial hurdles like debt and unemployment that can make it difficult to live independently. At the same time, changing attitudes about living with one's parents have made the arrangement more socially acceptable. To better understand this growing trend, let’s take a closer look at the economic, personal and societal factors driving the return of adult children to the family home.

Young adults today face a variety of financial challenges that make it more difficult to pay rent or buy a home. These include:

• Housing costs. Our Survey found that housing affordability remains the top reason boomerang kids are returning home, cited by 32% of respondents.
• Growing student loan debt. The average federal student loan debt was $37,853 per borrower in 2024, according to researchers at the Education Data Initiative. That's up from $27,759 a decade ago.
• Stagnant wages. Over the past 10 years, inflation-adjusted wages have increased somewhat for both men and women aged 25 to 34. But for those without a college degree, the average income for men is still less than it was several years ago, according to Pew Research.
• Job market instability. Labor force participation, the percentage of people working or looking for work, has been declining for young men over the long term, according to the same Pew study.

In some cases, moving back home enables adult children to hold out for higher-paying jobs. These employment opportunities, while better in the long run, may take longer to secure.

Often, the return to a parent's home is immediately preceded by a major life event that threatens an adult child's financial stability. It could be a medical issue that limits their ability to earn a living or saddles them with debt. In other cases, it's a career change or return to school that temporarily takes them out of the full-time workforce.

Divorce or separation from a partner is the second-leading cause of boomerang children moving back in with their parents, cited by 1 in 5 boomerang parents (20%). Even in cases where the individual was a primary breadwinner, a settlement often results in the loss of a marital home. It can also leave them with attorney fees and other costs, like spousal support, that consume a substantial portion of their monthly budget.

Societal norms around when to get married and have children may also influence the choice to move back in with one's parents. On average, men and women are waiting longer to get married and start families than in previous generations.

At the same time, the stigma once attached to adult children moving back home has lessened as the practice has become more common. Rather than rejecting it, research suggests, most parents now embrace the idea of their children moving back home. In a 2023 Pew study, as many as 74% of parents with an adult child under their roof said the impact was either somewhat positive or very positive overall.

Allowing your adult child to move back in—especially when they've experienced hardships—can provide them with the safety and security they need to get back on their feet. But extending a helping hand doesn't have to mean sacrificing your own well-being.

“Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,” said Thrivent Financial Advisor Alex Gonzalez, who helped his own boomerang child move out on their own over the past year. “I know firsthand the stress this can put on families, which is why I’m a huge advocate for long-term financial planning with a financial advisor. With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.”

Understanding the potential financial implications of the situation can help you prioritize your finances while your adult child is back home.

Once your child has moved back in, reassess your household budget to accommodate any increased expenses. Start by estimating how much additional food, utilities and other essentials will cost each month.

To maintain financial balance, consider a cost-sharing arrangement with your child. This may be a fixed monthly contribution toward bills or having them cover specific expenses, such as their own groceries or a portion of your internet bill. If the child is unemployed or financially struggling, an alternative approach might be assigning household responsibilities, like cooking, cleaning or maintenance, to offset their living costs.

Major life events, such as a layoff or divorce, may cause your adult child to lose their health care coverage. Paying for insurance independently can be costly, but there are options to obtain relatively low-cost coverage in many cases.

If your child is younger than 26, you can add them to either your workplace plan or an individual plan, such as one purchased through the Affordable Care Act (ACA) marketplace. Often, adding another dependent adds a modest amount to your premium, but it can be much less expensive than a separate policy.

Your child can also apply for their own marketplace coverage, which provides a subsidy for low- to moderate-income adults. They may not have to wait for a specific time of year to sign up if they qualify for a special enrollment period. Based on their personal and financial situation, they may meet the general requirements for Medicaid, another affordable alternative to non-ACA plans.

If your plan was to retire in the new few years, you may be worried that having an adult child at home will affect your financial readiness. According to our Survey, 38% of Boomerang parents say it has impacted their savings for long-term goals, like retirement, and 39% say it has impacted their savings for short term goals like vacations. However, with careful planning, supporting your child later in life doesn't have to jeopardize your retirement plans.

"As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they’re not sacrificing their future goals for an immediate need," Gonzalez notes.

If possible, come up with a plan that involves your child taking on some of the costs of living at home. Young adults can typically borrow money to stay afloat, but older adults can't borrow for retirement. Unless you're well ahead of the curve, don't stop saving for your retirement.

Per our Survey, 60% of young adults say their parents haven't communicated how supporting them in adulthood affects their own financial planning. To ensure your child's return home is a positive experience for you and them, set ground rules early. Being clear about expectations from the start—both financial and household contributions—can help prevent friction and strengthen your relationship. Here are five strategies to help you get started:

You likely instilled some basic financial literacy in your child when they were growing up, from distinguishing between wants and needs to saving for the future. But many adults still need guidance when it comes to developing a healthy relationship with money. That includes learning how to create a budget that helps achieve long-term financial stability.

"When our kids moved back home, we didn’t just give them space, we helped them build a plan," says Gonzalez. "We had them track their monthly expenses, look at the cost of rent, utilities, and groceries in our area, and set a savings goal that mimicked paying rent. That structure gave them financial clarity and momentum, and it’s a framework I recommend to clients navigating the same phase."

There are many approaches to budgeting. One of the most common is the 50/30/20 rule, where you allocate 50% of your income to your present needs, 30% to "wants" like entertainment and eating out and 20% to savings and debt repayment. The key is to find a budgeting method that works best for their situation.

If your child is saddled with credit card or other high-interest balances, helping them get out of debt should be a top priority. Sticking to a budget can free up cash every month so they can consistently chip away at debt.

Once they've tackled credit card balances and loans, talk to them about setting aside a fixed amount of each paycheck for an emergency fund. Building their financial confidence will help them plan for an eventual move into an apartment or home, or for longer-term needs like a retirement fund.

For adults who aren't natural savers, the "pay yourself first" strategy can be particularly effective. This approach involves setting up automatic transfers so at least 20% of their income goes into a separate savings account when they get paid. This way, they're less likely to spend the part of their income that should be saved for future needs.

Discover more ways to save money fast

Letting your child move back home doesn't have to mean you're stuck footing the bill. To the extent they're able, your adult children should contribute to household finances. It may involve some negotiation, but you should come up with a plan you're both comfortable with to address shared expenses and long-term plans, such as when your child plans to move out. This can help alleviate misunderstandings and financial and emotional strain.

"Having two adult kids at home meant higher utility bills, more groceries, and some postponed home projects, but we talked about all of it openly. We shared the numbers and asked them to pitch in on things like laundry detergent and snacks, small contributions that reinforced the bigger picture. That transparency helped set expectations and kept everyone aligned, something I encourage every family to do," says Gonzalez.

Plan to address questions like:

• Will they pay rent? If so, how will you calculate it? For example, you might charge the same amount as a studio apartment or reduce that amount in exchange for household chores or running errands. Even if you don't need the rent money, asking them to pay something each month can teach them about financial responsibility.
• Which expenses will you share? Decide what portion of household expenses they'll pay. Alternately, you may decide that they'll assume specific expenses entirely (e.g., their own groceries, gas and utilities).
• Should you save a portion of their contributions? In doing so, you can give them a "rebate" once they move out, similar to getting a security deposit back after moving out of an apartment.
• When will they contribute? Depending on their present earning ability, agree on whether they'll pay you now or once they're back on their feet.

In addition to financial contributions, you may want to set clear expectations about household chores and other responsibilities. Your child's return home will mean more laundry, cooking, cleaning and gas, if they're using a family vehicle. To avoid resentment and reduce arguments, every member of the household should do their fair share.

Discuss and agree on specific tasks you expect them to take on around the house. Consider posting a chore schedule somewhere visible—like the refrigerator—to avoid misunderstandings and hold everyone accountable.

Help your child set clear goals to chart a path toward independence. Depending on their circumstances, it may be to get a job or move up in their role, to save enough money to rent an apartment or to pay off their student loans. One goal should include a tentative end date for their living arrangement with you so everyone understands how long the return home may last.

SMART goals can be an effective goal-setting method. This approach breaks down goals to ensure they're not only relevant and achievable but also accomplished within a set time frame. SMART goals are:

• Specific. What do you hope to achieve? Rather than "I want to earn more," a SMART goal would be "I want to earn a 5% pay raise by January 1st of next year."
• Measurable. How will you track progress and determine success? This may include milestones such as "In three months, I will accomplish [X]... In six months, I will accomplish [Y]... etc."
• Achievable. Is your goal realistic and attainable based on your available resources, time and abilities? If not, this is not the right goal for the moment.
• Relevant. Is your goal critical to your long-term success and financial well-being? If your child's ultimate goal is to move out of your home, a relevant first step might be to get a better job and set up a savings account.
• Time-bound. How long will it take to achieve your goal? "By next year" is not specific enough. Set a date, even if it's tentative—with progress check-ins—to gauge success and stay accountable.

Even if you're happy to help your adult child through a challenging time, the return home may be a big transition for both of you. Thinking about its financial and emotional impact beforehand can help you avoid conflict and make it a positive experience.

Consider meeting with an outside financial advisor—especially one who's helped other parents in a similar situation. A Thrivent advisor can help your child rebuild their financial independence by creating a plan to manage debt and save for future needs.