“Start thinking about the future things and the courses of action you could take in different scenarios… The answer with financial planning isn’t just that you have your affairs in order. It’s making sure that all the people that could peripherally affect you, like your kids moving back home, have their plans in order.”
Financial planning has significantly changed over the generations. Nowadays, more young people are living at home, and saving on the cost of rent, than ever before. Here to discuss this trend is our team of Financial Advisors and CPAs, Eric Sachetta, Mike Callahan, George Liakakis, and Matt Stead.
Different generations of people have experienced different economies and have made varying choices with their financial planning. 52% of young people between the ages of 18 and 29 are now choosing to live at home. For these young folks, there is a growing necessity to stay at home due to an unsteady gig economy, and also an opportunity to save money and learn financial planning. Staying at home and working a job while saving up for an independent lifestyle set young people up with money-saving habits for life. Other people find they need to stay at home to pay off student loan debts that they otherwise wouldn’t be able to afford with an additional rent or mortgage.
This growing trend has a big effect on the economy at large, as well as the parents who welcome their children back into the home. Young people living at home essentially delays the creation of new households and families: the number one generator for the economy at large. In addition, parents end up paying for things for their kids that they didn't necessarily account for, like extra groceries. Financial planners recommend taking these factors into consideration, especially for parents, and planning ahead to ensure that the family can be cared for if children need to move back home.
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At Sachetta Callahan, we consider your entire financial picture, and that includes looking up, down and across generations. If you’re looking for guidance when it comes to planning with your family in mind, our advisers are here to help. Contact us today.
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