College Graduates Back Home with Parents!
Last month’s Career Connection article talked about some of the important steps a recent college graduate should do to obtain their first job after four years of study. The article provided sound advice that graduates should prepare their resumes, network for job opportunities, and pursue interviews with a highly enthusiastic and positive attitude. But, the Bureau of Labor Statistics announced a 9.4% unemployment rate across the United States in May 2009, and that rate is expected to rise. Graduates are leaving college with an average of $24,000 in credit card and student loan debt. So, after receiving the sheepskin, what are many graduates doing when faced with expenses, but having no job that provides an adequate income? Where do they turn and what do they do?
Statistics from various sources indicate that 50-65% of college graduates are returning to their parent’s homes after graduation. The majority of these so-called “boomerangers” will likely remain in their parent’s household for 12 months or longer.
What can parents do to help their graduates during this financially and emotionally difficult time? If the parents just simply give them money, the young graduates will not learn how to depend upon themselves. Instead, parents should provide graduates with positive reinforcement, encourage them to be proactive and patient, and even suggest that they consider an entry level job. Parents should remind them that once they have a job, they need to become financially independent. It can be a frustrating time, and graduates may suffer from feelings of isolation and loss of self-esteem. Graduates may be encouraged to make changes to their bedrooms so it reflects who they are now and not who they were 4-5 years earlier when they were in high school.
What others steps can be taken?
Set Ground Rules
While no answer that can apply to every family, it's important to have an open and honest dialogue as to what each party needs and expects. The rules need to be clearly defined as soon as a child returns home. There must be mutual respect on both sides. This includes recognizing that even though the child is now an adult there are still rules to be followed. For example, an adult child shouldn't consider inviting friends over for an all night party if the parent objects. Should parents charge their kids rent or ask for contributions toward other household expenses, such as utilities and groceries? Should the graduates be encouraged to pay personal expenses like cell phone bills, entertainment costs, and car insurance? The key step is to talk it out, and make sure everyone is on the same page.
Assign Household Responsibilities
Discuss with your child what chores he or she is responsible for around the house such as laundering and cooking. Everyone living there has something to do to maintain the home and the boomeranger should be no exception.
Set Expectations and a Deadline
There should be discussions and expectations on how active and aggressive the job search should conducted. How long is your adult child going to be living at home? Set a reasonable deadline as to when the graduate is expected to be independent and on their own. Perhaps a child already has a job but is unable to be sufficiently independent. You may consider having them pay you a certain amount of money as "rent" each month that you put aside for them to use when they are ready to move out. This may also be an opportunity for the parent to teach a child more about budgeting and finances.
Maintain Your Financial Plan
Your child being home is not a reason to forgo your own financial plans. Maintain your financial future and don't let the child's uncertain future jeopardize your own plans.
Seek Help, if Needed
If you feel there is an issue, do not be afraid to speak up or seek help. Given the proper parameters, this might be a wonderful opportunity for parents to spend time with a child before he or she goes on to independent living and full adulthood.
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