Parenting Grown Children: What Dr. Spock Forgot to Tell Us

Setting a Deadline: When grown children move back home, how long should they stay?

When her son's business crashed, Sheri invited him and his family--wife, two toddler-aged children--to put it all behind them . She encouraged them to move across the country and into her house until they got back on their feet. Two and a half years ago, they accepted the invitation. They're still living with Sheri.

"Friends asked me if I put a deadline on it," Sheri says. "Did I tell them they had a few months or a year or something like that?"

She did not. "If it had been just my son or just my son and daughter-in-law, I might have put a time limit on it. But when there are two children, it's different. Besides, it is not as though they wanted to prolong the stay. As Sheri puts it, "I have sympathy for my daighter-in-law.  Who at 33 wants to come live with your mother-in-law? I have been cognizant of that."

And then there was Sheri's past history: "My first husband passed away when I was 35 and I had three  children. My parents and my sister were there for me. My mother never said, "We can’t always help you." So there's a unique bond because of what happened. I'm giving  back to my son the way my mother gave to me."

Even if there were no emotional reasons, hard economic times make it trickier to set a deadline. And certainly, Sheri's son and daughter-in-law faced harsh times, moving as they did from the fire of Florida into the frying pan of California--two states that have suffered inordinately from the economic downturn. Besides, Sheri wanted her son to not just get a job but a career-line job. "I told him to take time to get his feet on the ground," she says. "You can't put a time limit on that."

In a few months, the family of four will be moving to a rented house an hour's drive from Sheri's. Both adults now have good jobs. Although there were difficult times and Sheri is looking forward to having her house, her husband and her life to herself again, she is not sorry she did it. Friends badgered her about not setting a time limit, but she doesn't see why she should have. Yes, it was hard. Yes, it was uncomfortable. But she had a goal in mind--not just employment but good employment--for her son and her daughter-in-law. And she was fortunate enough to have the means to afford the luxury of time it took for her son to get back on his feet. She can count the 2 1/2 years but she has never toted up the cost of the gift in terms of money. Do her other children? That's another issue.

Money Matters: Who pays for what when the kids move back home

When Shari's son, daughter-in-law and two children moved into her house, they had, financially speaking, nothing. The cookie business they started together had failed--despite infusions of money from the family. So when Shari and her husband Hal opened their home as a refuge--"a lifeline" she calls it--money was an issue. "We could have subsidized their rent," Shari says of the decision to have the family move in with her, "but their needs were so far above and beyond that. They needed food, medical insurance, car insurance, clothes--the works." Shari and Hal were fortunate to have the wherewithal to pick up the tab for the big things, but what to do about "walking around money" while the son and daughter-in-law were job hunting?

At first, the four adults held Sunday night meetings: to go over any unmet needs or frustrations; to keep Shari and Hal up to date on job interviews and other employment prospects. Once it became clear what some of the day-to-day cash needs were, Hal came up with a plan. Every Monday morning they would leave Shari's son a check that was big enough to cover lunches, car fare, outings with the kids, other incidentals for both the son and his wife. That way, the younger couple wouldn't have to ask every time they needed something. This was important to Shari: "Money can be very divisive," she says. "It can be a wedge." She didn't want her son to feel demeaned by his circumstances, that he had to ask his Mommy for money to meet a friend for lunch or take his kids to the movies. And there was this: she didn't want either her son or daughter-in-law to rush into a job that wasn't on a career path.

It helps when you can afford to be as generous as Shari and Hal were. But the important point, to me, was not so much how much they could give and how many bills they could cover, but the open way they communicated. Talking things out--being up front about even the most personal money issues--can ease a tricky financial situation. And for Shari, setting a clear goal--jobs for her children that were on a career path--helped her formulate a plan she could live with and not resent.

Money Matters: The long arm of parents who help their kids.

"We are spending so much money on our kids," a friend tells me. "They need to be rescued every once in a while."

The kids in question are hers from her first marriage and his from his first marriage. One of her sons went through a painful and devastating divorce, including court battles over child custody and support. He lost his job. My friend, her husband, her other son, the father of her son and an uncle all pitched in to help the divorced son. It took several years before he was back on his feet. And now his eldest son--one of my friend's three grandchildren--was ready for college. He had to choose not the best school he got into but the least expensive one. My friend and her husband dipped into their retirement savings to pay tuition--her son couldn't afford it and neither the ex-wife nor her parents (the other grandparents) were willing to help out.

My friend could live with the choice of the lesser school. That's life. It made her angry that the other grandparents weren't willing to help. That's life, too, but more emotional, verging as it does on fairness.

Now, she's got another financial anxiety: Her stepson--a man in his late 40s--has always been self supporting and single. And has always been shy around women. So, when he started dating a woman his age and then announced he was getting married, everyone was thrilled. But the new wife came with old and huge debts from her life with a former boyfriend. The new husband is helping his wife pay off those I.O.U.s--the credit card debt keeps compounding like crazy--and now everyone's helping out. It's another drain on my friend's dwindling retirement resources.  

"It never ends," she says. "It seems like one of our kids is always having a money crisis." A few years ago--just before he retired--my friend's husband paid off the mortgage on their house. "So we are lucky," she says. "What would we do--how could we help our kids--if we had a $2,000 a month mortgage payment to meet?" It also raises the question of how long you help out your grown kids. When does the rescue line end? And maybe even more to the point: How do you define crisis?

Does it help to know she--and by extension we--are not alone? The Brits are experiencing similar pressures. Here's a news story I just came across. In Great Britain, "millions of grandparents are cutting back their spending because they feel under pressure to fund their grandchildren." Research also found that the majority of grandparents regularly spent cash from their retirement savings on clothing, toys and other treats for their grandchildren. Others helped pay for essentials, such as shoes and school uniforms, to help their own children balance their finances.

Here was a key finding that hit home: "Although some children did ask their parents for financial help, much of the pressure to provide for grandchildren comes from the grandparents themselves." 

Re-filing the Nest: An economist looks at the phenomenon

While families struggle with the financial and emotional impact of having grown children move back home--and take up residence in their old bedroom--there are some interesting macroeconomic effects.

Here's how a Mark Thoma, a well-respected economist, blogged about the implications of re-nesting. First he looks at a phenomenon he calls "Family as insurance:"

The parental home as unemployment insurance

"It is well known that in Spain and especially Italy, people in their twenties and even thirties stay with their parents until they find a job, and they often wait for the "perfect" job. This looks like an unemployment insurance with infinite duration with substantial moral hazard, which has lead to sky high youth unemployment rates in Europe.

Greg Kaplan is documenting that something similar is happening in the United States. ...many of those who do not attend college return home during unemployment spells, much like college students return home over the Summer. This analysis is very nicely done with an estimated structural model that features a repeated game between children and altruistic parents. In particular, this allows us to understand why the savings rate of young people is so low. As they have the option of returning to their parents, they see no need to build up any precautionary savings. This means also that programs like unemployment insurance have little impact for them."

Then Thoma comes up with his kicker: "Just thinking of all things parents do to provide the insurance, yet minimize the moral hazard problem. The last place I would have wanted to live at that age was with my parents, and I'm pretty sure the feeling was mutual."

Re-Nesting: When the grown kids move back home

The economy is taking its toll on those empty bedrooms in your house. More young and not-so-young adult children are finding the only way to survive the downturn--the loss of job or the piling up of bills--is to cut their losses by moving back home. The number of people between the ages of 25 to 34 that are living with their parents increased 17.8 percent between 2000 and 2007, according to the U.S. Census Bureau--and that was before the recession firmed its grip. Wonder what the 2010 numbers will look like?

Here's another view of those numbers: Almost 16 million families had at least one child over 18 living at home in 2003, up 7 percent since 1995 and up 14 percent since 1985, according to the Census Bureau's American Housing Survey.

They're "boomerang" or "back-to-the-bedroom" kids. They leave. They come back. Sometimes more than once, often after college, between jobs, before marriage, after a divorce or when housing costs are so exorbitant that moving in to their old bedrooms is more appealing than sharing a small, rundown apartment with three roommates.

Zhu Xiao Di, a research analyst at Harvard University's Joint Center for Housing Studies, has studied boomerang kids for years.In a recent paper, ["The Effects of Housing Push Factors and Rent Expectations on Household Formation of Young Adult,"] he finds a direct correlation between rent prices and an adult child's decision to live with the parents. Couple that with big increases in college tuition and fees, and young adults find themselves saddled with debt before they start collecting their first paychecks.No wonder they head home.

The good (or bad) news, depending on how much you like have your grown children living at home, is that such arrangements aren't usually permanent. The number of kids moving back in with their folks usually escalates during cycles of crisis, such as wars and economic depressions.

Sound like what we're going through now?

Re-Nesting: Advice on the move back home

If your grown children and their children are moving back home--out of economic necessity or for a temporary but long-term visit--there are lots of challenges ahead. Here's a blog that's detailing how one family is working things out. I like the tone of it. Here's part of an opener to one recent entry:

"When you invite your children to come back home for whatever reason (in this case a bad housing market) you can’t make them feel as if they are imposing.  It is very important to let them know that this is their home now also.  With a few simple ground rules laid out in advance, everyone can feel comfortable."

If you're interested in reading more, click here

Moving Home: The Boomerang kids return to the nest

This isn't the first time I've posted links to newspaper, magazine or blog items on how to handle a return to the nest. But it is the first time I've seen the topic covered at length by no less a media than the New York Times. In true Times tradition, "When Fledglings Return to the Nest" covers the basics thoroughly. Here are some highlights:

 Should you take them in:"Given your own economic circumstances, you may not be able to afford another mouth to feed. But if forcing children to live on their own may lead to a bigger bailout later, it may not be economically smart. Besides, having kids at home again may help you save money."

Should they pay rent? The issue "isn’t so much whether you charge. It’s why the child has moved home in the first place." The anecdotes in the article suggest that if the children aren't slackers--are just in a tough financial spot right now--you might want to forgo rent or charge a token fee, one that rises with time until it's close to market rate. One parent put it this way: “I’m aware of the circumstances where within the family there’s the proverbial 35-year-old living at home How does it get to the point where the child didn’t decide to move on? The bond between child and parent is so strong, it was easier for us in the abstract to say that this was the program.”

If they pay rent, should you refund it when they move on? While some parents see the rent as a real contribution to the household, others "consider it a reward for good financial behavior, or a leg up on a future down payment."

Should you give them financial advice? Tread carefully here. Use other sources--books, articles--as a referral on the topic. One parent suggests this mantra:  “When you have adult children, you cannot tell them what to do. You can only tell them what you’ll pay for. And if they don’t need you to pay for it, then you can only hope that they ask for your advice and take it.”

What if the stay is prolonged as a way for the child to save money for the future? "It may work best if the child works 80-hour weeks or travels constantly. It may help if the parents are gone most weekends, or if the child crashes at the home of a paramour frequently. It helps, too, to have no siblings underfoot and a bathroom (and better yet, an entrance) of one’s own. And, of course, the child needs to save the money as planned. If squabbles ensue, the child can always move out. But if everyone gets along, these children eventually move out with a big pile of money in the bank. And that safety net makes it more likely they will never again have to move back in with you."

Money Matters: How to talk about money

They've got tips--100 of them--for discussing money, an always touchy topic when it comes to talking to your adult kids without making them feel like you are muddling in their financial life. They are Kathryn and Captain Frugal of the Money Saving Blog.

Here are some of the tips aimed at the adult children themselves (and that we, as their parents, should bear in mind):

39. Set clear boundaries. Decide on your own what you will and won’t discuss with your parents and financially and stick to those boundaries.

40. Respect your spouse and children. As you get older, your family priorities shift away from your role as a child and towards your role as a parent and spouse. When discussing finances with your own parents, respect the rights to financial privacy that your other family members have.

41. Rely on parents for financial help only as a last resort. After you’re on your own, you need to be responsible for your own finances. If you rely on parents for help, then they are going to feel that they have a right to tell you how to spend and save and you want to avoid that.

42. Don’t overreact. You don’t live in your parents’ house anymore so you don’t need to get all worked up about their opinions on your money. Just listen and let it go.

43. Find non-money things to discuss with your parents. Parents sometimes try to get us to talk about money because it gets us riled up. In a weird way, this makes them feel that they’re still closely involved in our lives. If we are close in other ways, this will be less of an issue

44. Use the “I” word. Parents still feel responsibility for your finances since you’re their child. They’ll feel less responsible if you talk about your own feelings and situation without blaming them.

45. Stop talking about the past. The financial past is over with so deal with it and move on.

Here are some tips for you, as the parent of grown and independent kids:

72. Do more listening and less talking. Your kids needed you for advice and financial guidance when they were young. Now they need to sort things out on their own with your sound financial ear as support.

73. Let your adult kids know that you’re willing to help them learn how to budget, save money and get into investing. Then wait until they say they are ready for your help. When they ask, be there to assist.

74. Invite them to attend financial classes and workshops with you.

75. Solicit your kids’ advice on technology as it applies to money. They probably know more than you in this area!

76. Admit your changing financial fears. As your kids become adults, they are ready to hear the reality of your fears about money as you get older. Admit this and find a proactive way to eliminate those fears together.

77. Consider their finances when planning family things. You may want your kids home for Christmas but if this puts a financial burden on them then it creates a lot of stress. Discuss the issue openly to resolve the financial aspect of these things.

78. Put your financial affairs in order. This will help when dealing with money as you get into your older years.

Refilling the Nest: Economic woes bring older adult children home

The latest census report and a couple of surveys hold some startling statistics for those of us with adult children: They are moving back home in force. And at mid-career--or older.

Here are the numbers, starting with the younger ones:

According to the most recent Census report, there were 5.1 million Americans age 25 to 34 living in the home of a parent. In 2004, there were only 4.3 million doing so.

When AARP surveyed 1,000 adults this spring, it found that 11 percent of people between ages 35 and 44 were living with parents or in-laws.

A recent survey by grandparents.com of 4,800 grandparents found 12.5 percent reporting that they lived in the same home as their grandchildren; of those, 53 percent said that the adult children and grandchildren who lived with them could not afford to live independently.

And the trend is likely to keep going as this deep recession just begins to hit bottom. These stats and some human interest stories to go with them are in this story from the New York Times.

Refilling the Nest: Two is company, three is crowded

The semester is almost over. The students who went off to college as overgrown teens are heading home for the summer as adults. A friend's son, after two years of struggling with college courses, is coming home for the duration--to figure out what he'll do next, what he wants out of life, whether further schooling is for him. It's a tough time for him--and for his parents. 

His imminent arrival feels, says my friend, "like an invasion of my space." He'll be bringing home--to the house where my friend and her husband comfortably raised two children--all his clothes, sports equipment and odd pieces of furniture he picked up to furnish an off-campus apartment he shared with friends.

But I don't think that's what she means by an invasion. The physical presence of a young adult who's in some turmoil and the daily reminder of that internal contest is not to be discounted. And that's what I think she means when she says, "The house is too small for three adults."