By MyBankTracker  Wed Jul 14, 2010

Unemployed College Grads Return Home, Become ‘Boomerang Kids’

Parents these days often do not have enough time to get over their empty nest syndrome before their college kids move back home — dirty laundry in tow.

The trend of recent college graduates finishing school only to settle back in with mom and dad is becoming more of a movement. It has become so prevalent that there is even a name for these graduates: “Boomerang Kids”.

“Boomerang Kids” Often Trying to Escape Debt

With the high price of college many graduates find themselves in debt right from the get go. Real world expenses like rent, food and utilities are completely avoidable in the comforts of their childhood homes. But does moving back home make young adults too comfortable?

According to the U.S. Bureau of Labor Statistics, 23% of recent college graduates are not looking for work out of the 37% of college graduates who are unemployed. Living off of their parents’ earnings is sustenance enough for those who choose to move back home. Many parents do not mind having their child move back home, and some even embrace it. The nurturing instinct to take care of your child can actually end up doing more damage than good. An extra mouth to feed may not be a financial issue for you, but there are other expenses to consider. If they are not bringing in an income, your graduate may be more inclined to borrow money. This could put your retirement planning on hold.

College kids living at home might not feel as motivated to get their lives started. Moving back in with the parents might seem like the best option for economic purposes but in reality it can be harmful in the long run. Graduates that live on their own after leaving school learn real-world lessons on how to manage money. There is more pressure to get and keep a job. Although the first job out of college may not be a “dream-job” per se, having any kind of work experience can be crafted into a resume builder.

Yes the economy is tough, and the best option for many students is to move back home. As long as living at home is seen as a temporary fix and graduates are still planning for the future they should be able to find success.

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Add Your 2 Cents

  • Annonymous

    You emphasize the importance of learning life skills, having the pressure to get/keep a job, being financially independent etc. But I believe parents should teach these skills both before and during college and not “throw their kid into the real world” post-college. The time to learn how to live independently is both before and during college. Post-college should be the opportunity to APPLY said knowledge. There is nothing “harmful” about returning home, even if it's for years and years. Not if parents do their jobs well.

  • Jon

    Its not so much the graduates fault, young adults are told from the get go that college is the ticket and the debt you get into is more of an investment, thus the term safe debt comes up. They realize to little to late that the debt cant be paid off with the jobs available to them after graduating. Thats when they open there eyes and there dream bubble pops. They see men and woman with MBA’s flipping burgers. Let your kids come home and start figuring things out on there own. Helicopter parents raised boomerang kids, what a shock. Im guessing going to college wasn’t much of a decision as much as it was a step in there life much like high school. If thats the case, parents gave bad investment advice to there kids and get what coming to them.