Boomerang kids threaten parents’ retirement

MINNEAPOLIS – Economic pressures continue to force young adults back home, according to Thrivent’s fourth annual Boomerang Kids Survey. Despite a tough economic climate, parents are now more likely than ever to provide temporary financial support for adult children returning home after moving out. While this monetary assistance may serve as a short-term solution, it could also create a long-term ‘Boomerang Burden’ as parents deal with escalating financial strain in the years that follow.

“Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,” said Thrivent Financial Advisor Alex Gonzalez, who helped his own boomerang child move out on their own over the past year. “I know firsthand the stress this can put on families, which is why I’m a huge advocate for long-term financial planning with a financial advisor. With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.”

This year’s survey results show an urgent need for proactive communication and long-term financial planning along with more transparent family discussions around finances:

• Priced Out, Moving In: Multiple economic factors are contributing to adult children returning to live with their parents. Housing affordability (32%) remains the top factor, but is down significantly from 2024 (50%), potentially reflecting cooling rent prices nationwide. Other factors driving adult children home include increasing prices on essentials (30%) and personal events like divorce/separation (20%).
• Parental Sacrifice: 38% of Boomerang parents say that financially supporting their adult children has impacted their long-term retirement savings and 39% say it has impacted their savings for short-term goals like vacations.
• Communication Breakdown: 60% of young adults say their parents have not shared how supporting them in adulthood impacts their financial planning.
• Boomerang Status & Financial Literacy: Overall, 54% of young adults believe they manage finances well (giving themselves an A or B grade) and 57% of parents agree. But for adult children currently at home, just 46% receive good marks on their budgeting skills, a stark contrast to the strong scores children who never moved back home (63%) earned.
• Hitting Their Limit: Citing the current economic environment, 45% of parents have either withdrawn or scaled back financial support for their children.

 

What areas of your finances have been impacted by your adult child(ren) living at home with you? Select all that apply.

Financial impacts	2025	2024	2023	2022
Savings for short-term goals, like vacations	39%	32%	21%	26%
Savings for long-term goals, like retirement or housing	38%	37%	16%	35%
Ability to pay off debt	34%	38%	23%	26%
Savings for future health care needs, including medical procedures	21%	21%	14%	14%
Supporting aging parents	8%	8%	9%	4%
None of these	30%	40%	53%	48%

 

Here are a few tips that Thrivent Financial Advisor Alex Gonzalez shares with clients who are navigating additional financial support for their adult children:

 

1. Don’t sacrifice tomorrow for today. Whenever I start working with a client, we start by setting long-term financial goals and understanding what’s most important to them. This is the foundation for a great financial plan and helps keep the future in mind when making in-the-moment decisions. As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they’re not sacrificing their future goals for an immediate need.
2. A plan makes all the difference: When our kids moved back home, we didn’t just give them space, we helped them build a plan. We had them track their monthly expenses, look at the cost of rent, utilities, and groceries in our area, and set a savings goal that mimicked paying rent. That structure gave them financial clarity and momentum, and it’s a framework I recommend to clients navigating the same phase.
3. Honest talks about money payoff: Having two adult kids at home meant higher utility bills, more groceries, and some postponed home projects, but we talked about all of it openly. We shared the numbers and asked them to pitch in on things like laundry detergent and snacks, small contributions that reinforced the bigger picture. That transparency helped set expectations and kept everyone aligned, something I encourage every family to do.
4. Be there beyond the launch: Even now that our adult children have moved back out, we kept the financial conversations going, whether that’s saving for a home, understanding benefits at work, or planning for life milestones. I always tell clients to check in regularly, not just when there's a crisis. It helped us stay supportive without overstepping, and it has given our kids the confidence to keep making smart financial choices.
5. Lean on your financial advisor. A great financial advisor is empathetic, understands your long-term goals and listens to your needs. They can help you navigate the complexity of this situation and help you understand the tradeoffs between your long-term financial goals and the short-term support you want to provide your children.

 

Survey Methodology

Thrivent’s Fourth Annual Boomerang Kids Survey was fielded online by Morning Consult from 3/13/25 through 3/28/25 among a total sample of n=2,195 adults 18+ (weighted to U.S. general population on key demographic aspects such as gender, age, etc.) with a total audience margin of error of +/-2%. In addition to general population, oversamples of the following MSAs were fielded and weighted to their respective demographic make-up: Atlanta (N=1,004; MoE +/- 3%), Chicago (N=1,004; MoE +/- 3%), Houston (N=1,001; MoE +/- 3%), Los Angeles (N=1,000; MoE +/- 3%), Minneapolis (N=1,000; MoE +/- 3%). Some questions for this survey were shown to a sub-set of respondents, thus base sizes and margin of error may vary by question.