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Archive for Sunday, March 23, 2008

So much for empty nests: Economy forcing children to move back home

March 23, 2008

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— After being laid off from her job as an events planner at an upscale resort, Jo Ann Bauer struggled financially. She worked at several lower-paying jobs, relocated to a new city and even declared bankruptcy.

Then in December, she finally accepted her parents' invitation to move into their home - at age 52. "I'm back living in the bedroom that I grew up in," she said.

Taking shelter with parents isn't uncommon for young people in their 20s, especially when the job market is poor. But now the slumping economy and the credit crunch are forcing some children to do so later in life - even in middle age.

Financial planners report receiving many calls from parents seeking advice about taking in their grown children following divorces and layoffs.

Kim Foss Erickson, a financial planner in Roseville, Calif., north of Sacramento, said she has never seen older children, even those in their 50s, depending so much on their parents as in the last six months.

"This is not like, 'OK, my son just graduated from college and needs to move back in' type of thing," she said. "These are 40- and 50-year-old children of my clients that they're helping out."

Parents "jeopardize their financial freedom by continuing to subsidize their children," said Karin Maloney Stifler, a financial planner in Hudson, Ohio, and a board member of the Financial Planning Association. "We have a hard time saying no as a culture to our children, and they keep asking for more."

Bauer's parents won't take rent money or let her help much with groceries. She's trying to save several hundred dollars a month for a house while working as a meetings coordinator.

Bauer would prefer to live on her own, but without her parents' help would "probably be renting again and trying to stick minimal money in the bank," she said.

A new survey by the retiree-advocacy group AARP found that one-fourth of Generation Xers, those 28 to 39 years old, receive financial help from family and friends.

Comments

Kontum1972 6 years, 9 months ago

madmike...well from the sound of your remark you must be pretty well off financially than the rest of america to be in denial as to what is happening to this country because of Bush/Cheney & Company....or u probably still live with your parents since u were born....

Godot 6 years, 9 months ago

This is happening all over the world. The Chinese stock market dropped 35% in the last year; in Great Britain, people are stuck in the same mortgage mess that we are here in the US, while the government recently nationalized a major bank to keep it from collapsing their financial system; a major Swiss bank is nearly insolvent; German banks are near insolvency; the real estate bubble is Spain is bursting; France has a very high rate of unemployment and virtually no growth in its economy; Japan has been in a slump for nealy two decades; inflation in some African countries is over 20%.

Blame all this solely on Bush/Cheney if you want, and remain ignorant and unable to comprehend what is really going on around you.

SettingTheRecordStraight 6 years, 9 months ago

logrithmic,

Since when did we put government in charge of "taking care of Americans"? Go take care of yourself.

toefungus 6 years, 9 months ago

Simply kick their butts out. Life is tough.

8ball 6 years, 9 months ago

she would probally be paying rent,well boo-hoo

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