Many grads moving back home

[OhioChick]

More and more 20-somethings have to move back in with their parents. It's not just you.

Fri, Jun 3, 2011 8:55 AM

Hey there, June graduates: How many of you are discovering that heavy student loan debt + weak job market = moving back to your old room? You're not alone.

According to an article from The Charlotte Observer, plenty of people between 20 and 29 (and older) are moving back in with their folks. Such a move "protects them economically," according to Kathleen Harris, director of the National Longitudinal Study of Adolescent Health.

"They're less likely to have the material hardships of not having a phone or having their utilities turned off," says Harris, a professor of sociology at the University of North Carolina at Chapel Hill.

Between 2008 and 2010 the number of adults living at home went up 5%. That's another 1.2 million grown men and women who might be told to get home by 11 p.m., because after that the sound of the front door opening will wake Mom up.

More: http://money.msn.com/family-money/article.aspx?post=fb4699f6-f0ad-44c4-8207-e2af49bd4eb7

[dkf]

1. Saving for a downpayment would be a good thing.

[Shagbark Hickory]

11. saving up for the purchase price would be even better.

[JustAnotherGen]

2. not that much different than the 90's

Most of my friends - as well as I - moved back after graduating in the mid 90's. Even back then in the third largest metro are of NY State - $25k a year was NOT enough to pay student loans, auto insurance, savings - And maintain a household. After taxes I was bringing home aout $790 every other week but had a pension, health insurance AND 401K option (snow making division at York Intl).

Now here's the difference - can these recent grads even FIND that job? And keep in mind - my student loans at Niagara U only amounted to $14K. . . a lot of these people are coming out with 3 to 6 times that kind of debt.

They have no choice. Definately not a sign of immaturity - in this case they are using their common sense and being realistic.

[canoeist52]

3. $600.per mo. student loan , $800 per mo. rent.

Minimum wage income. What's not to understand?

[taught_me_patience]

4. I simply don't understand moving home to save for a down payment (if one has a job)

What's wrong with renting for a while and having fun in life?


Imagine when they are older... "Hey man, remember when we were in our twenties, what a fun time... working, making money, travelling, chasing women..."

"Nah... I was living in mom's basement trying to save up for a home... at least she washed my undies once a week..."

[pnwmom]

6. Working, making money, and traveling are all quite feasible

for twenty-somethings living with their parents. Traveling is easier when you've not having to put half your salary into rent.

Even chasing women is not impossible, depending on the situation, especially when the young adult is lucky enough to have a private entrance.

[taught_me_patience]

8. I guess I just valued freedom more than saving money

As soon as I found a job after college, my mother kicked me out of the house... I was dying to get out anyway. It was tough to pay the bills at first, but that's part of the learning experience of life.

Also, if my daughter moved back home after college and was earning enough money to travel, I'd probably kick her out.

[pnwmom]

9. I lived at home for 2 years after college

and I was happy to be able to save the money. And yes, it did go into the down payment of our first house. That's how many people were able to afford those 20% and bigger down payments that all the banks required. With loan standards tightening up and a return to larger down payments, I expect more and more young people will make this choice. And then there's that other huge group -- the ones with college loan payments almost as big as a mortgage. If they live at home for a few years they can get those loans paid off a lot more quickly.

Different strokes for different folks, but I can't imagine why a parent would kick a productive, courteous adult child out. Europeans are much less likely to do this than Americans. I don't know why we tend to make such a fetish out of single living, when there are solid economic and environmental reasons for extended family living.

[taught_me_patience]

14. Struggling financially in early 20's is not a bad thing

it builds character and an appreciation for what money you can save. I've lost my "life savings" twice... once in the market crash of 2000, and once moving to Los Angeles and starting a new life. The first was a learning experience and the second was totally worth it for my quality of life. I look back and just laugh at that time... I can now save that same amount of money in two months.

I guess my argument is that, while independent living might not be the most advantageous financially, it is worth it for having fun, creating memories, and learning about financial responsibility. People's lives often change really fast in their 20's and, often, it's not good to be tied down by a mortgage. Often, incomes skyrocket in your 20's and financial struggles turns into prosperity quickly.

[pnwmom]

17. Some people like to take bigger risks than others.

And you can learn about financial responsibility step-by-step. You don't HAVE to be thrown into the lake in order to learn to swim; you can get swimming lessons and gradually go into the deeper water.

People who live in houses they're working to own actually can have fun, create memories, and become financially responsible.

Our incomes, like yours, increased significantly in our thirties but we never felt tied down to our mortgage. We just were happy to see that mortgage payment shrink till it was only 10 percent of our income -- and then we sold the house and bought another with another large down payment and another fixed mortgage. That one we paid off completely. Now we're making still making memories and it's even more fun knowing we don't have to pay rent to anyone.

[TheWraith]

10. It's about fiscal responsibility. Rent is basically money thrown away.

You don't ever get that money back. Money put into buying a home is an investment, and if you choose to sell it at some later point, you can recover that investment. Leaving an apartment, you leave behind all the money you paid as rent there. Not everyone in my generation is looking to be carefree, have fun, and forget about the future.

[taught_me_patience]

12. Buying a home in your 20's is, in my opinion, not a smart thing to do

As many people are finding out now. You can get underwater real fast, and might have to wait 5-10 years before getting back above water. There is nothing worse than being stuck in an underwater starter home, when your family is growing and your income is growing higher. Life is often vastly different at 32 than 25...

[pnwmom]

13. It was a great thing for us to do, with a fixed mortgage.

We had to pay more than 10% interest then, but still the monthly payment wasn't much bigger than we'd been paying for our small apartment (and was effectively the same because it was tax-deductible). As our income went up, the payment stayed the same, so we were able to put the savings back into the house and retire the mortgage after 15 years.

I know many young people got burned a few years ago, with expanding mortgages and shrinking home values. But people who buy at the lower end of the market and have low, fixed rate mortgages will be better off years from now than the people throwing all their money into rent.

[taught_me_patience]

16. You bought at a good time then

because mortgages in Los Angeles are frequently $1,000 more than equivalent rent. However, a mortgage can also tie you down to an area... and in this economy, mobility is crucial (expecially for younger job seekers). You simply have to move to where the jobs are.

[pnwmom]

18. It's true that it isn't the best idea to buy a house unless you can stay in it for several years.nt

[provis99]

5. more proof that the entire US economy is screwed.

A college degree 50 years ago pretty much meant an upper-middle class job for life.
Except that millionaires and billionaires are making record amounts of loot.

[JoePhilly]

7. Don't go to college ... only stupid people do.

The GOP thanks you for your support in this effort.

[zen_bohemian]

15. I believe this.....

where my kid works, there are many college graduates holding bachelor's degrees, working for minimum wage right now