You sent them off to kindergarten, then to college. Now they’re back home, but before long they will start their first job and start looking for their own place. Use this time wisely.
The number of college graduates who find themselves living with their parents has grown by 8.8% in the last decade, according to an analysis of census data by the online real estate company Zillow. The young adults in your family may find moving home, even temporarily, a bit constraining after college life. However, chances are they’ll be out of the house before you know it.
Kiplinger’s recent article, “Your Kid Is Moving Back Home? How to Make the Most of It,” says that most families want to build cohesion as members mature. However, it gets increasingly tough as families grow and disperse. When your college graduate moves home, use the opportunity to discuss and clearly state your family values. This can play a critical role in cohesion building—these core values serve as the foundation from which a family can form a shared purpose.
Without a shared purpose in a family, wealth often dissipates by the third generation. A shared purpose can unite, energize, and excite family members to do more, be more, contribute more, and behave in a certain manner. To prepare children, a unique and custom-tailored approach to their broader education is often helpful. This might include:
- Understanding their personal goals, hopes, and visions (“motivators”);
- Establishing their role and responsibilities in the family, community and society at large;
- Defining the effect they’d like to make and the purpose of their wealth;
- Learning to work collaboratively with others;
- Creating a financial decision-making process that is clear, well-thought-out and consistent;
- Understanding basic financial concepts, like investments, taxes, estate planning and credit; and
- Working with a trusted team of advisers.
This can be a time of bonding and growing your relationship with your kids, as they are now young adults. Enjoy the time you have with them, keep dialogues as open as possible and help them as they grow and stretch their wings.
Reference: Kiplinger (July 23, 2018) “Your Kid Is Moving Back Home? How to Make the Most of It”