Tuesday, July 27, 2010

New Grads Return Home, Become 'Boomerang Kids'

College grads moving from dorms to bedrooms

Reprinted with permission from http://www.mybanktracker.com

Parents these days often do not have enough time to get over their empty nest syndrome before their college kids move back home — dirty laundry in tow.

The trend of recent college graduates finishing school only to settle back in with mom and dad is becoming more of a movement. It has become so prevalent that there is even a name for these graduates: “Boomerang Kids”.

“Boomerang Kids” Often Trying to Escape Debt

With the high price of college many graduates find themselves in debt right from the get go. Real world expenses like rent, food and utilities are completely avoidable in the comforts of their childhood homes. But does moving back home make young adults too comfortable?

According to the U.S. Bureau of Labor Statistics, 23% of recent college graduates are not looking for work out of the 37% of college graduates who are unemployed. Living off of their parents’ earnings is sustenance enough for those who choose to move back home. Many parents do not mind having their child move back home, and some even embrace it. The nurturing instinct to take care of your child can actually end up doing more damage than good. An extra mouth to feed may not be a financial issue for you, but there are other expenses to consider. If they are not bringing in an income, your graduate may be more inclined to borrow money. This could put your retirement planning on hold.

College kids living at home might not feel as motivated to get their lives started. Moving back in with the parents might seem like the best option for economic purposes but in reality it can be harmful in the long run. Graduates that live on their own after leaving school learn real-world lessons on how to manage money. There is more pressure to get and keep a job. Although the first job out of college may not be a “dream-job” per se, having any kind of work experience can be crafted into a resume builder.

Yes the economy is tough, and the best option for many students is to move back home. As long as living at home is seen as a temporary fix and graduates are still planning for the future they should be able to find success.

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