Parents report its harder to save when adult kids move back in
of ConsumerAffairsApril 30, 2025
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46% of parents report adult children aged 18-35 moving back home.
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38% of Boomerang parents say long-term financial goals, like retirement, have been impacted by their children living at home.
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60% of young adults say their parents have not discussed the financial impact of supporting them a second time.
The possibility of hard economic times ahead should be concerning for all Americans but it may matter the most to parents of adult children. Amid rising living costs and housing challenges, a growing number of young adults are returning to live with their parents and the financial burden on those parents is becoming more pronounced, according to a new survey.
Thrivent, a financial services firm, has just released its Boomerang Kids Survey, showing that this trend is reshaping family finances and revealing a need for open communication and long-term planning.
Economic realities
The survey highlights several contributing factors to this shift. While housing affordability remains the leading driver,cited by 32% of respondents, it’s a notable decrease from 50% in 2024, potentially due to moderating rent prices across the country. However, the cost of living remains high, with 30% of respondents citing rising prices on essentials, while 20% moved back due to personal setbacks such as divorce or separation.
These “boomerang” returns are far from rare, and the ripple effects extend beyond just temporary housing.
The survey shows that a significant number of parents are now providing temporary and often unsustainable financial support. Thirty-eight percent of parents reported that assisting their adult children has negatively impacted their long-term retirement savings. Nearly the same number (39%) say theyve had to compromise short-term goals like vacations.
Troubling trend
The survey also shows a troubling, growing trend: since 2022, the percentage of parents reporting negative impacts on long-term goals has more than doubled in some categories. For example:
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Savings for short-term goals rose from 26% in 2022 to 39% in 2025
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Long-term savings strain grew from 35% in 2022 to 38% in 2025
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Fewer parents now report no financial impact
Adding to this pressure, 45% of parents say they have already scaled back or stopped financial support altogether,a signal that many families are nearing a breaking point.
A deeper dive suggests that parents and adult children aren’t always on the same page when it comes to money. Sixty percent of young adults say their parents have not explained how this support affects the familys finances, a silence that may contribute to unrealistic expectations or misaligned goals.
Theres also a significant gap in financial confidence. While 54% of young adults give themselves a high grade (A or B) on financial management, only 46% of those currently living at home earn the same confidence from their parents. In contrast, those who never moved back score better, with 63% receiving strong budgeting marks.
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