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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

offtotheright 6 years ago

I guess this has nothing to do with it:

Vick said the reasons were similar to those taking well-publicized tolls on middle- and lower-income communities: People bought more home than they could afford, taking out adjustable-rate loans that often were secured with little more than their paychecks and a promise.

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Red_Peters 6 years ago

I never knew Republicans were so hell-bent on destroying America. Thanks to those like logrithmic for exposing this despicable bunch.

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8ball 6 years ago

she would probally be paying rent,well boo-hoo

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offtotheright 6 years ago

Take care of your self. It is not the governments place to take care of you. It's called Personal Responsibility!

Has nothing to do with Bush. That is just an ignorant statement.

People spending beyond their means and not being financially responsible is the reason they are moving back home in their 40's and 50's!

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logrithmic 6 years ago

Setting...

Guess you beter ask Bush that. He invaded Iraq to "take care of Americans." Go ahead, ask him... I'm sure he'll answer.

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toefungus 6 years ago

Simply kick their butts out. Life is tough.

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SettingTheRecordStraight 6 years ago

logrithmic,

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

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notnowdear 6 years ago

And kids will be going to college over the internet.

It is coming soon. Be aware, Lawrence, Kansas.

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madmike 6 years ago

No kontum, I am not well off. I spent 20 years in the Army, so that retirement isn't that good. I also am a government employee, so I am not rolling in money. And I haven't lived with my parents since I was drafted in 1971.

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logrithmic 6 years ago

I don't blame it all on Bush/Cheney. It started with Reagan's complete abolishment of all the energy-related initiatives of the Carter administration. Then Reagan decided Star Wars and other militaristic notions of world domination mattered more than taking care of Americans. So he more than doubled the national debt in his eight years, while mini-recessions rolled through various industries like steel and auto (remember the rust belt) and the Japanese and Arabs bought up businesses and land (Michael Moore points out in Fareheit 911 that the Saudis own 8% of our economy). Then comes Bush I. More of the same, including the longest recession since WWII.

Clinton restores some fiscal sanity, but it took a while to do so. Wages for the little guy actually began to rise in the latter part of his term.

Then comes Bush II who has doubled the military share of the pie and doubled the national debt.

Why is it RepubLICKlans like to use our taxes as their own private playgrounds? Ask yourself about this pattern. And then think about how the corporate media tries to sell them as "fiscal conservatives." Passing on debt to the future is fiscal conservatism? How bout you in your private financial dealings. Do you want to pass on a lot of debt to your children? Then why do that with the national budget?

Why does this matter? Simple. With debt, options become limited. We cannot prime the economic pump when facing a downturn as the debt will balloon (though it really can't balloon any worse than it has under Bush/Cheney and the RepubLICKlan leadership of the first six years of their term). And with their sole focus on national security, whether it is bombing countries that have not attacked us, replacing governments through invasions, building bases for empire around the world, and turning the National Security Agency and the CIA into spydogs against American citizens like you and me, well you can see they have no interest in doing anything to free us from our addiction to oil. In fact, they want to keep us addicted as it benefits their oil company allies (Exxon Mobile now has it's HQ in Dubai).

All of the new technology that could revamp our resource depletion - wind, geothermal, solar - and reduce greenhouse gas emissions (thus saving life on this planet) is being woefully underfunded, while weapons of mass destruction, including biological weapons, and surveillance of the American public, is being overfunded.

The worst part of all of this is that we are paying for it. You and I. We are paying for our own impoverishment, for our own imprisonment.

Enjoy the fruits of your labor....

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Godot 6 years 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.

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Kontum1972 6 years 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....

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madmike 6 years ago

Me thinks that Logrithmic is related to Merrill.

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logrithmic 6 years ago

Wow, very troubling. And add that to this short video to see where the RepubLICKlan leadership has brought this nation:

http://www.youtube.com/watch?v=6BiVP1JVCGU&eurl=http://liberalpro.blogspot.com/

If that isn't enough, about half trillion deficits, promises to keep the U.S. (and our taxes) tied up in Iraq for 100 years, bailouts of large investor banks with taxpayer guarantees of worthless paper, and a military industrial complex that with its militarism (disguised as empty patriotism) and spying on Americans is expected to send the taxpayers a bill for $1 trillion this year.

The great RepubLICKlan ripoff exposed for those brave enough to look at it....

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