How Not To Go Broke If Your Kids Move Back After Graduation

   The after-college reality is much different from a generation ago.  Two thirds of college graduates owe significant money after graduation.  That’s why it’s now very common for graduating seniors to move back to the family home for some time.  For those who don’t have ready employment, it’s probably a necessity.  For those with jobs, moving back in with the folks may be a way to save for a down payment on a car or possibly a home.

   It’s absolutely fine to welcome family back home, particularly if it means you really have an opportunity to help your kids.  But it’s not a terribly good idea to welcome home what the experts are calling “boomerang kids” if you’ve put your own retirement savings on the back burner, and you’re also facing both expense and strain from taking care of elders.

   Like all family transitions, this one requires some planning, and it may not be a bad idea to get some advice not only on how to manage the financial aspects of your relationship with your grown child, but how to make sure the other aspects of your financial life are healthy. 

   Here are some steps:

•  Promise not to overextend yourself:  Don’t let the return of the prodigal son or daughter derail your own retirement or debt repayment plans.  Parents may also have some challenging financial problems to solv ...