I’m not exactly proud of it, and I recognize how fortunate I am to have that option.
I also know I’m not alone. Currently, more 18-to-34-year-olds live with their parents than any other arrangement, according to the Pew Research Center.
Trade-Schools.net recently polled 800 college graduates who moved back in with their families.
The findings are as intriguing as the move itself.
How Long Are Young Adults Staying at Home After Graduation?
I’m currently at the 10-month mark of my rent-free stint at home. I had told myself I’d be out by Christmas.
Well, that came and went.
Then I promised I’d be gone by my one-year anniversary… and I’m still not particularly motivated. Apparently, many others felt the same.
- 14% of those surveyed lived at home for less than six months.
- 24% lived at home for six months to one year.
- 24% lived at home for one to two years.
- 16% remained at home for two or more years.
- 22% of millennial respondents still live at home. (Hi, that’s me.)
Who’s more likely to stay at home for two years or longer?
- 18% were men.
- 26% were history majors.
- 25% were arts and theater majors and IT majors.
- 27% worked in telecommunications.
- 25% were employed in transportation and warehousing.
- 19% identified as Republicans.
- 18% were white/Caucasian.
- 17% were Protestants.
- 25% of millennial respondents still live at home. (Hi, that’s me.)
Why Young Adults Choose to Move Back Home
I returned home to save cash.
After finishing graduate school, I didn’t own much. I also landed a full-time dream position with benefits in my hometown, so it made sense to move back.
Here are the top reasons people reported moving back in with their parents after college:
- To save money: 48.9%
- To look for a job: 29%
- To catch up on student loans: 8%
- To avoid accruing more debt: 4.5%
Other reasons included addressing physical or mental health needs, becoming closer with family (like, really close), building credit, avoiding living alone, or taking a pause before a major relocation.
I’ll admit: I want my own place — but I’m not thrilled about combating Florida’s hardy roach population.
Clearly You Should Set a Firm Move-Out Date
Those who live at home for shorter spans (under two years) appear to be doing better financially.
(I went ahead and circled May 2018 on my calendar. That’s my target move-out.)
Respondents who lived at home less than two years reported earningmore— roughly $6,000 more per year.
That’s a significant difference. But remember that “correlation isn’t causation,” as your statistics instructor probably reminded you.
I doubt moving out itself caused the salary bump.
Still, you can bet I’ll be out of my parents’ place before that two-year threshold (mostly because I’d like to feel like a grown-up by 26…).
How to Actually Move Out of Your Parents’ House
Maybe you will earn more if you’re gone by the two-year mark. Or maybe you simply want your independence (or your sanity) back…
Either way, I’m taking these steps to speed up the move-out so I can start living independently.
1. Pick a realistic move-out date.
Seriously, I’m trying to overcome my fear of creepy-crawlies and rent checks and commit to a move-out day.
But don’t just randomly jab a finger at a calendar and declare “now.”
Be practical. Know your expected rent and monthly bills versus your income.
Create a timeline and a budget.
2. Begin setting aside rent money.
This might sound odd, but hear me out.
Check rental listings where you plan to live and figure out how much you’ll need each month after you move out.
Once you’ve saved some cash by living at home, start allocating money as if you were paying rent. I know you don’t have a place yet, but put this money aside so when you move, you’ll already have, say, six months covered.
Keep it in a separate account so you don’t accidentally spend it.
3. Establish an emergency fund!
When you leave home, you never know what might happen.
That’s why you should build a financial cushion — an emergency fund — so you’re protected if something goes wrong.
Like the pretend rent, stash this in a dedicated account to keep it away from your spendthrift impulses.
Financial pros recommend saving at least six months’ worth of living expenses.
4. Prioritize paying down student loans.
More Americans are defaulting on student loans, which is a bad situation.
Defaulting means stopping payments. After 270 days of nonpayment, your balance grows because of late fees and interest, and collection fees can be added.
In the long run, you could lose eligibility for federal student aid, damage your credit score, or have tax refunds or wages garnished.
So, chipping away at those loans matters — especially while you’re saving money by living at home.
If you want to lower monthly payments, look into refinancing. Two people saved considerably by refinancing with Credible. (“Considerably” meaning more than $5,000 in savings!)
You’ll feel much better moving into your own place without a massive debt load. Trust me.
5. Stop hoarding stuff.
There’s a good chance you moved back home with a mountain of possessions — maybe three times what you left college with?
My car was jam-packed, and I shipped boxes of clothes ahead. But now I realize I don’t need 15 sweaters in Florida, nor that college-knickknack that used to mean so much…
And I certainly don’t want to haul all of it again when I get my own place. (I’m searching for a better word than “stuff,” but really, it fits.)
The easiest way to thin the extras and make some cash is to sell items online with an app like letgo.
This user-friendly app lets you set prices. It’s simple: snap a photo and upload.
The service works like Craigslist by showing listings to people nearby, so you don’t have to deal with shipping.
For old textbooks, try BookScouter. The site compares buyback prices and shows the best places to sell.
Your Turn: Got any tips for the rest of us graduates who’ve moved back home?
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Carson Lee (@CarsonLee) is a junior writer at Savinly.
