Tuesday, 05 January 2010
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The Boomerang Effect: Are Money Woes Sending You Home Again?
With the economy in its current state, it seems like "boomerang effect" is one of the newest buzzwords. It describes the phenomenon of young adults heading out into the world only to return back to their parents' house. It used to apply only to recent college graduates, coming home the summer after graduation when they weren't able to find a job. Now, however, it's being applied to people who come home after striking out on their own only, to experience some financial hardship that forces that them back to the relative safety of Mom and Dad's house.
A recent article in The Chicago Tribune discusses the so-called Boomerang Effect and profiles a 33 year old woman who moved back in with her mother after racking up $48,000 in credit card debt. According to a study cited in the article, 1 in 10 people between the ages of 18 and 34 have moved back home and an additional 12% have sought out roommates.
In addition to the difficulties of an adult moving back under her mother's roof, the article brings up that young adults now are putting off all kinds of major decisions because of the financial strain. 15% have postponed getting married because of the expense of a wedding. Others are putting off having children, perhaps indefinitely, because of the expenses involved.
I'm in something of a unique situation because I actually have to help my parents out instead of it being the other way around. But even my 39 year old brother had to move back into my parents' with his two kids because of a financial situation. He had to stay for a little over a year, so I'm certainly familiar with the boomerang effect.
Have you moved home or put off a major decision or event because of the financial strain? Would you consider doing it if necessary?
Check out the full article from The Chicago Tribune here: http://www.chicagotribune.com/business/chi-boomerang-kids-04-jan04,0,3390766.story?page=1
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About the Author
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- From: Cara
- Name: Cara
- About Me: I'm a 24 yr old back in the Midwest for law school. I've survived the first semester as a law student after working as a paralegal for two years. Let's see how the rest of the time goes!
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Comments (2)
I haven't moved out yet,but, would be ashamed if I did return after moving out this year.
After living at school for 4 years, I live at home with my parents again. Finding a job is hard, and I have a few paid things going on right now, but they help pay for my $400+/month loan payments. I can't really afford rent and food and other things on top of that.