Do you still help support your grown children?
Posted: Fri Jun 20, 2014 7:32 am
It’s Official: The Boomerang Kids Won’t Leave
By ADAM DAVIDSON
The New York Times
Annie Kasinecz has two different ways of explaining why, at age 27, she still lives with her mom. In the first version — the optimistic one — she says that she is doing the sensible thing by living rent-free as she plans her next career move.
After graduating from Loyola University Chicago, Kasinecz struggled to support herself in the midst of the recession, working a series of unsatisfying jobs — selling ads at the soon-to-be bankrupt Sun-Times, bagging groceries at Whole Foods, bartending — in order to pay down her student loans. But she inevitably grew frustrated with each job and found herself stuck in one financial mess after another. Now that she’s back in her high-school bedroom, perhaps she can finally focus on her long-term goals.
But in the second version — the bleaker one — Kasinecz admits that she fears that her mom’s house in Downers Grove, Ill., half an hour west of the city, has become a crutch. She has been living in that old bedroom for four years and is nowhere closer to figuring out what she’s going to do with her career. “Everyone tells me to just pick something,” she says, “but I don’t know what to pick.”
One in five people in their 20s and early 30s is currently living with his or her parents. And 60 percent of all young adults receive financial support from them. That’s a significant increase from a generation ago, when only one in 10 young adults moved back home and few received financial support.
The common explanation for the shift is that people born in the late 1980s and early 1990s came of age amid several unfortunate and overlapping economic trends. Those who graduated college as the housing market and financial system were imploding faced the highest debt burden of any graduating class in history. Nearly 45 percent of 25-year-olds, for instance, have outstanding loans, with an average debt above $20,000. (Kasinecz still has about $60,000 to go.) And more than half of recent college graduates are unemployed or underemployed, meaning they make substandard wages in jobs that don’t require a college degree.
According to Lisa B. Kahn, an economist at Yale University, the negative impact of graduating into a recession never fully disappears. Even 20 years later, the people who graduated into the recession of the early ‘80s were making substantially less money than people lucky enough to have graduated a few years afterward, when the economy was booming.
MORE
By ADAM DAVIDSON
The New York Times
Annie Kasinecz has two different ways of explaining why, at age 27, she still lives with her mom. In the first version — the optimistic one — she says that she is doing the sensible thing by living rent-free as she plans her next career move.
After graduating from Loyola University Chicago, Kasinecz struggled to support herself in the midst of the recession, working a series of unsatisfying jobs — selling ads at the soon-to-be bankrupt Sun-Times, bagging groceries at Whole Foods, bartending — in order to pay down her student loans. But she inevitably grew frustrated with each job and found herself stuck in one financial mess after another. Now that she’s back in her high-school bedroom, perhaps she can finally focus on her long-term goals.
But in the second version — the bleaker one — Kasinecz admits that she fears that her mom’s house in Downers Grove, Ill., half an hour west of the city, has become a crutch. She has been living in that old bedroom for four years and is nowhere closer to figuring out what she’s going to do with her career. “Everyone tells me to just pick something,” she says, “but I don’t know what to pick.”
One in five people in their 20s and early 30s is currently living with his or her parents. And 60 percent of all young adults receive financial support from them. That’s a significant increase from a generation ago, when only one in 10 young adults moved back home and few received financial support.
The common explanation for the shift is that people born in the late 1980s and early 1990s came of age amid several unfortunate and overlapping economic trends. Those who graduated college as the housing market and financial system were imploding faced the highest debt burden of any graduating class in history. Nearly 45 percent of 25-year-olds, for instance, have outstanding loans, with an average debt above $20,000. (Kasinecz still has about $60,000 to go.) And more than half of recent college graduates are unemployed or underemployed, meaning they make substandard wages in jobs that don’t require a college degree.
According to Lisa B. Kahn, an economist at Yale University, the negative impact of graduating into a recession never fully disappears. Even 20 years later, the people who graduated into the recession of the early ‘80s were making substantially less money than people lucky enough to have graduated a few years afterward, when the economy was booming.
MORE
