Boomerang kids in 2026: From 'exception' to 'expectation'

From diapers to summer camps to college, you probably started preparing for the financial impact of parenthood before your child was born. But many parents don’t plan for the possibility of their adult children moving back home later in life.

As economic pressure and housing costs continue to rise, welcoming adult children, or “boomerang kids,” back into the home has become common for American families.

For many parents, this homecoming can create meaningful opportunities for connection and support. But it also can bring about financial and emotional strain. Opening up lines of communication and setting clear expectations around money, timelines and household responsibilities can help make this transition health and rewarding.

A boomerang child is a young adult who returns home to live with their parents after leaving for college, work or another period of independent living.

According to our 2026 Boomerang Kids Survey,* 44% of parents say they’ve had an adult child between the ages of 18 and 35 return home after living independently.

“Adult children moving back in with their parents has shifted from stigma to strategy—for both parents and kids,” says Gene Elder, Thrivent financial consultant in Loveland, Colorado. “Boomerang living is not a blip; it's becoming a lasting part of how families plan their money and keep moving toward their long-term financial goals.”

These days, there are many reasons young adults decide to move back home and accept support from their parents. Boomerang kids may experience the financial stress of unemployment, high housing costs, student loan debt or major life transitions that can make it difficult to get back on their feet.

At the same time, societal attitudes around returning home have evolved, reducing much of the stigma that once surrounded it and making this family arrangement more common. For some, moving back home is no longer considered a setback, but a practical financial decision to offset a difficult economic period.

More than half (55%) of young adults who moved back home say the move was “financially necessary,” while an additional 27% say it was not necessary but still provided financial benefits.

More than ever, young adults today are navigating economic pressures that can make it harder to pay rent, buy a home or live independently. These include:

Our survey found that housing affordability remains the top reason boomerang kids are returning home, cited by 45% of respondents, a leap from 32% just last year.

Attitudes around the attainability of homeownership are divided. While more than a third (34%) say that their primary reason for living at home is to save for a down payment on a home, nearly as many (30%) say they don’t expect to ever be able to purchase a home of their own.

Reduced income and job loss continue to push many young adults back home, with 36% of respondents citing it as a major factor.

In many cases, returning home provides temporary financial stability while adult children pursue higher-paying, more stable job opportunities that often take longer to secure.

The average federal student loan debt was $39,550 per borrower in 2025, up from $38,370 the year before and $29,140 a decade earlier in 2015, according to the Education Data Initiative.

According to our survey, nearly half (47%) of current boomerang parents say having an adult child move back home has impacted some area of their finances.

When this happens, parents naturally look for places where they can cut back or tighten up. Forty-three percent say they would be willing to cut personal spending to support their adult children, while nearly 1 in 5 would even reduce their own personal savings or retirement contributions.

These kinds of sacrifices put a strain on household budgets and a damper on long-term planning. Getting ahead of the financial impact can help you prioritize your finances while an adult child is back home.

Families with a boomerang child should start by revisiting their household budget to account for increased expenses. Groceries, utilities, transportation and other everyday costs can add up quickly, and it’s good to have a working estimate.

Many families implement a cost-sharing arrangement. This may include a monthly contribution toward bills or having the child cover certain expenses, like groceries or a portion of the internet bill.

If the child is unemployed or financially struggling, another option may be contributing through household responsibilities like cooking, cleaning or home maintenance to offset 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 pricey, but there are often lower-cost options available.

Adults younger than 26 may be able to stay on a parent’s workplace health plan or an individual plan purchased through the Affordable Care Act (ACA) marketplace. In most cases, adding a dependent raises your premium, but it’s still less expensive than paying for an entirely separate policy.

Adult children also may qualify for their own marketplace coverage, which can include subsidies for low- to moderate-income adults. Depending on their situation, they may qualify for a special enrollment period instead of waiting for the normal enrollment window. Some also may qualify for Medicaid, which can provide another affordable coverage option.

If retirement is approaching, you may be concerned about how supporting an adult child could affect your long-term financial plans. While helping family through a difficult season is important, it’s also important to protect your own financial future.

If possible, create a plan that includes your child contributing to some of the costs of living at home. Young adults may be able to borrow money temporarily or rebuild income over time, but retirement savings can be much harder to replace later on. Unless you’re significantly ahead on your retirement goals, try to continue prioritizing your long-term retirement savings while supporting your child.

More than three-quarters (76%) of boomerang kids say their parents haven’t communicated how supporting them in adulthood affects their own long-term financial planning, up sharply from 60% in 2025.

At the same time, more than half (55%) of boomerang parents expect the living arrangement to last at least a year, showing these situations are becoming less temporary and more financially significant for families.

There’s also a disconnect between how parents and adult children may view the future. While many parents are preparing for a longer-term financial commitment, 78% of young adults who haven’t yet reached financial independence say they expect to do so within the next 5–10 years. Without open conversations about money, expectations and timelines, families can find themselves on very different pages.

Setting clear expectations early can help prevent miscommunication and reduce financial stress for everyone. Here are five strategies that can help families communicate better and navigate boomerang living together.

You likely taught your child some basic financial habits growing up, from understanding the difference between wants and needs to saving for the future. But many adults still need guidance when it comes to building a healthy relationship with money and creating a budget that supports long-term financial stability.

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, paying those down 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.

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.

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 fuel, 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 creating a chore schedule to keep 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, and so on.
• 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 through the financial and emotional impact ahead of time can help reduce stress and create a healthier living arrangement.

Working with a financial advisor also can help families navigate these conversations and plan more confidently for the future. A Thrivent advisor can help your child rebuild their financial independence by creating a plan to manage debt and save for future needs.