Moving Back in With Mom and Dad: How to Make the Money Work

For many young adults, moving back in with parents is part of the journey from childhood to adult life. Not everyone is ready to get their own home, move to a new city, or start a long-term career right after graduating from high school or college. 

Many young adults become “boomerang kids” who fly back to the nest of their parents’ home after going away to college or trying a new job in a different place. Some young adults move back in with mom and dad to rebuild their finances after experiencing financial trouble, overcoming a layoff or career setback, or completing a debt relief program. Many young adults need some extra time and support to save money, get established on a career path, and build a stronger financial future.  

And that’s totally fine. Whatever your reasons, moving back in with your mom and/or dad is nothing to feel bad about. This kind of family-friendly housing arrangement can be especially good news for your bank account. Moving back in can be a smart, responsible choice to put yourself in a better position for your next career move and your financial success. 

When you move back in, everyone can benefit. Parents and adult children can cut their housing costs, save money on groceries, and boost their personal finances. If you’re feeling the pinch of high inflation, or getting tired of paying rent for an overpriced tiny apartment, moving in with parents can help you save big money on the cost of living while building up your emergency fund and achieving other financial goals.

Before you move back in with your folks, it’s important to set some rules and make agreements upfront about how to manage money while living together. Here’s how to make moving back in with the folks a win-win for everyone’s wallet. 

Is Moving Back Home Right for Your Financial Situation?

Moving back in with your parents is a big decision, so it’s important to stop and think about why you’re doing it and whether it’s right for you. Here are a few good reasons to move back home, and a few red flags that might make you choose other options. 

Good reasons for moving back in with your parents 

• You want to get rid of debt: Paying off debt faster, whether it’s credit card debt or student loans, can be a great reason to move back in. If you have a job, have a debt payoff strategy, and know how long it will take to get rid of your debt, this can give you a clear timeline for how long you might need to live with your parents. 

• You have specific financial goals: Along with getting rid of debt, you might want to build up an emergency fund, save for a new car, save for a down payment on a house, or other big goals. Moving in with Mom and Dad is often most successful when it helps you achieve clear goals, not an open-ended commitment.  

• You’re happy to spend more time with your parents: The emotional side of moving in is even more important than the financial side. Hopefully you’re happy to live with your family and spend more quality time together.

Red flags: Reasons not to move back in

• Your parents are having financial trouble: If your parents are struggling to pay the bills, they might not have enough room in the budget (or in the home) to host you for long. Moving in with them could add too much stress and pressure. You might be better off living under your own roof.

• You’re not willing to change your adult lifestyle: Moving in with your parents might require you to change the way you socialize or the schedule you keep. You can’t always stay out late or have friends over in the same way. 

• Your debts are overwhelming and you need debt relief: If you have lost a job or experienced other financial hardship, moving in with your mom and dad might not be enough to get rid of debt. If you have unpaid, overdue debts, you might be better off seeking debt relief. This could help you stay in your own place without relying on your parents.

Moving in with Mom and Dad is not always the best answer for getting rid of debt. Think about whether any of these debt strategies would help you: 

• Do-it-yourself (DIY) debt payoff: If you have a steady job and can make some changes to the way you spend money in the short run, you could try a DIY debt payoff plan (like the debt snowball or debt avalanche). 

• Debt management plan (DMP): If you’re having trouble paying your credit card bills, you could try a debt management plan (DMP) through a consumer credit counseling agency. 

• Debt settlement: If you want to negotiate with creditors (or get a professional to help you negotiate), a debt settlement program could help you with credit card debt relief and getting rid of other unsecured debts for less than you owe.

Here are a few signs that your debt situation might be a good fit for debt relief (instead of moving in with your parents): 

• You have high unsecured debt balances (like credit card debt) 

• You’re struggling to make minimum payments on credit cards 

• You’ve missed payments on debts 

• You have overdue, delinquent, or charged-off debts 

• You’re getting contacted by debt collectors 

Before you pack your bags for your mom and dad’s house, consider doing an assessment with Freedom Debt Relief. You can get a free consultation to see what debt relief options might help you get rid of debt faster. 

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Moving Back in with Mom and Dad Is Normal 

Don’t feel as if moving back in with your mom and dad is a step back—in fact, it’s pretty common. In 2024, about a third of American young adults 18 to 34 lived with their parents, according to Pew Research. And only 45% of young adults in this age group were completely financially independent. There are some good reasons young people today might want to live with their parents, even after initially leaving the nest.

People are getting married later in life 

One of the traditional milestones of adult life in America is marriage, and it’s a big reason people used to move out of their parents’ homes. But more young Americans are delaying getting married than in previous generations, or they’re not getting married at all. As of 2024, the typical age of first marriage for men was 30.2 years old, and 28.6 years old for women.   

Student loans 

Higher education is expensive. Average student loan debt (for just federal loans) is $39,075 as of 2025. Moving back in with Mom and Dad could be a good strategy to pay off student loans faster.  

High housing costs 

Affordable housing is in short supply. High rents could drive some young adults to live at home while they save up for a deposit on an apartment or a down payment on a home. 

For these social and economic reasons, moving back in can often be smart for your personal finances. 

How to Make Money Work for Parents and Adult Kids Living Together 

Moving back in with parents is a chance for everyone in the family to cut costs, share responsibilities, and save money. But before you move in, take time to talk about the household budget. Make sure everyone’s on the same page.

Should the adult child pay rent? How much money should everyone contribute to shared monthly bills like utilities and groceries? What if parents want to help out financially—should they cover all their child’s financial needs, or should the adult child be at least partially independent? 

Here are a few tips for parents and young adults to stay on track financially when living together: 

Parents should make sure to:

• Keep saving and investing for retirement. Don’t pull money out of your retirement account to cover your child’s expenses. You need to plan for your future even while your adult child is living at home. Leave your investment accounts alone, and let that money grow for the long term. 

• Plan for a bigger household budget. With more people under one roof, your costs for utility bills, groceries, and even car expenses like gas and auto insurance might go up. Think ahead about how everyone can pay their fair share of these costs of living. 

• Help with the essentials. Adult kids can pay for their own entertainment and meals out. As a parent, if you’re financially comfortable enough, you might want to cover the basic living essentials for the family, such as mortgage payments, utilities, and food. But if your adult child is living in your home rent-free, any extra fun spending, like vacations, hobbies, or entertainment, should be your child’s responsibility.

Setting expectations upfront can help everyone get the most out of living together as a family again. It’s understandable that as a parent you’d want to help your child at any age. But keep on saving for your own future retirement, and encourage your adult child to help with household expenses. Helping foot the bill for some housing costs and shared living expenses can keep your adult child motivated to stay financially disciplined while they get ready to find a place of their own.  

Adult kids need to:

• Get on a budget. Write down the expenses you still need to meet while living with parents. Take a look at your monthly income, debt, and expenses, and make a budget plan for your finances each month. For example, if you’re living rent-free with your parents, you might want to devote 50% of your income to paying off debt, 20% to savings, and 30% for living expenses. Get aggressive at putting money toward your big financial goals. 

• Save for future living expenses. Living at home may be only temporary, so take the opportunity to save, save, save. Build up some cash in the bank for a deposit on a new place and moving expenses.

• Use unemployment benefits to your advantage. If you’re collecting unemployment, use this time to pay off debt or build up an emergency fund.

• Help out around the house. As a young adult, you can be hugely helpful with managing the household. Offer to help with running errands. Volunteer to do more than your share of chores. Take things off your parents’ to-do list in ways that money can’t buy. 

As an adult child moving back in with your parents, take a step back and think about the big picture. What do you want to gain from this time of living at home? What goals can you set? Do you want to save three months’ worth of living expenses, get out of credit card debt, find a new job, buy a car, or choose a new city to move to next? 

If you’re moving back in with your mom and dad to help get rid of debt, think carefully about how you can use this time (and extra money) to pay off debt faster. Here are a few of the most popular debt payoff strategies. 

DIY debt payoff 

If you have steady income, moving back in with your parents can cut your living expenses significantly. This can free up extra cash to help pay off credit card debt, student loans, and other debts. Many people choose from these popular debt payoff strategies: 

• Debt snowball: Pay off your smallest debt first. For example, if you have three credit cards with balances of $2,000, $3,000, and $5,000, the debt snowball method has you pay off the $2,000 amount first (while making only minimum payments on the other two credit cards). This gives you a sense of momentum to keep the snowball of successful debt payoff rolling. 

• Debt avalanche: Pay off your highest-interest debt first. For example, if you have four credit cards with APRs of 22%, 23%, 24% and 29%, pay off the 29% debt first, even if its balance is lower. Paying off higher-interest debt first can help you save the most money on interest costs. 

How long it takes to get rid of debt: Paying off debt by yourself could take a few months or a few years. Use a debt payoff calculator to find out how long it will take to get rid of debt based on your balances, APRs, and payment amounts. This could help you know how long you need to live with your parents. 

Debt management plan (DMP) 

If you’re struggling to pay your credit cards, the DIY strategy might not work. You might need professional help to get debt relief. A consumer credit counseling agency can help you set up a debt management plan (DMP). With this debt relief option, the credit counselor works with your creditors to create a new monthly payment that fits your budget and pays off your debt over time.

How long it takes: Debt management plans usually take three to five years to complete. If you want to get rid of debt faster, this might not be the right choice. 

Debt settlement 

Another way to get debt relief is through debt settlement. This involves negotiating with creditors to accept less than you owe. You can try to do debt settlement yourself, or get help from a professional debt relief program like Freedom Debt Relief. Debt settlement is often the right choice for people who have fallen behind on their bills or are receiving calls from debt collectors.   

How long it takes: Freedom Debt Relief’s debt settlement program usually lasts two to four years based on how much debt you have, but many customers see their first debts settled within a few months. This can help you free up more cash in your budget to get ready to move out of your parents’ house faster. 

No matter what debt payoff strategy or debt relief option you choose, it’s important to talk with your parents about how this temporary living arrangement is helping you move forward with your life plans. Show them how you’re making progress each month. That way, everyone in the family can feel more invested in your future success. 

Be a Good Housemate to Your Parents 

Moving back in with your mom and dad as an adult creates a whole new dynamic. You’re not just their child anymore, you’re also their roommate. So make sure you’re a good housemate. Here are a few ways to accomplish that. 

Pay rent and share the bills 

Some people might want to live rent-free with their parents, but it’s often a better idea to help pay for the household expenses. Even if your parents don’t expect you to pay for a big percentage of their housing costs, you might want to offer something—like, say, $200-$500 per month. Offer to pay for your own groceries and help split the utility bills. You can still save big money and get rid of debt without causing extra costs for your parents while living in their home. 

Establish boundaries 

Talk with your parents upfront about their “house rules” now that you’re an adult. Be respectful of each other’s personal space, personal time, and boundaries. They might not want you staying out late on weekends while living under their roof; you might want to go on dates or have a romantic partner come over to visit. Make plans and have clear communication with your parents about how to maintain your adult independence and adult relationships while living at home. This can help you balance your personal life with your family obligations. 

Have an exit strategy and target date 

Make it clear to your parents that you don’t plan to live with them forever. Set a timeline for how long it will take you to pay off debt, build up your savings, and be ready to move out. Having a clear exit strategy can help you stay focused on your goals, and make the time more enjoyable. 

Money-Saving Alternatives to Moving Back Home

Not everyone wants to move back in with parents—or after moving in with them, you might realize that you prefer living on your own. Here are a few alternatives to help you get rid of debt without moving in with your parents. 

Professional debt settlement programs 

If you want to keep living in your own home, debt settlement programs can help you get rid of debt faster. This type of debt relief can be a good choice for people with unpaid credit card debt or other unsecured debts like medical bills or (some) private student loans. Even if you’ve had serious financial hardship, you don’t always have to move in with your parents. Debt settlement can help you get rid of debt in a few months to a few years. 

Debt consolidation 

If you have steady income, fair or better credit, and aren’t too far behind on your bills, debt consolidation can be a good way to get rid of debt without moving back in with your mom and dad. Getting a debt consolidation loan can help you combine high-interest debts (such as credit card debt) into one easy monthly payment, usually at a lower interest rate. Saving money on interest can help you pay off debt faster. 

Roommates

Instead of becoming housemates with your parents, why not find another friend to live with? Getting a roommate can cut your monthly housing and utility bills in half. 

Side-hustle income 

One of the best ways to save more money and get rid of debt faster is to raise your income. Making extra money with a side hustle can help you turn your spare time into spare cash. 

There’s nothing wrong with moving in with Mom and Dad if that’s what’s right for you. But you do have other options when it comes to saving money and paying off debt faster without giving up your independent lifestyle. 

When Professional Debt Relief Could Make Sense 

If you’re going through serious financial challenges and have already fallen behind on credit card payments or other bills, you might want to think about bankruptcy or debt relief programs. 

Here are a few signs that you might be a good fit for professional debt relief or filing bankruptcy: 

• Your debt is getting bigger each month.

• You have no emergency savings. 

• You’re losing sleep about debt and bills. 

• You have been declined for new loans or credit cards. 

• You can only afford the minimum payments on your credit cards.

• You’re juggling bills, trying to decide what to pay each month.

• You have already fallen behind on credit card payments.

• You’re hearing from debt collectors.  

• You’ve had a car repossessed.

• You’ve been warned about having your phone canceled or utilities cut off.

• You’ve been threatened with eviction. 

These types of financial hardship, especially if a few of them are happening at once, are bigger than ordinary challenges with paying the bills. They often happen because of serious life events beyond your control, like losing a job and experiencing long-term unemployment, or going through a serious illness or medical emergency. 

If your debt is too overwhelming for family support alone, you might need professional help with debt relief. You can choose debt relief or bankruptcy even if you move back in with your mom and dad. But if your finances are in severe trouble like the examples in the list above, you might need to make this choice first, before you decide whether to move back home.

Here’s a quick breakdown of the differences between bankruptcy vs. debt settlement.  

Bankruptcy

This is a legal process for dealing with debt. By filing bankruptcy, you get legal protection from creditors and a chance to make a fresh start. But bankruptcy is not easy or harmless to your credit. You start by talking to a lawyer about your options, and choosing whether to file Chapter 7 or Chapter 13 bankruptcy. If you own few or no assets or property, have a lot of unsecured debt, and you qualify for Chapter 7, that may be the quickest and cheapest way to clear your debts. 

But if you don’t qualify for Chapter 7, Chapter 13 bankruptcy may be an option. It requires working out a plan to pay back some of your credit card debt or other unsecured debts. Not all debt goes away in bankruptcy, especially with Chapter 13. It’s possible to end up paying more to your creditors in a Chapter 13 bankruptcy than you would have paid via DIY debt payoff without legal help. And bankruptcy is not always successful. Half of Chapter 13 cases fail, which could leave you with extra costs and challenges—along with legal fees.  

Debt settlement program

This is a type of professional debt relief that helps you get rid of debt faster by negotiating with creditors to accept less than you owe. For example, if you have $10,000 of unpaid overdue credit card debt, your creditors might agree to accept $5,000 to settle the debt. Debt settlement is often a good fit for someone with financial hardship who intended to fully repay their debt, but can’t.

You can try to settle debts yourself. But a professional debt settlement program like Freedom Debt Relief helps you set up a clear plan to get rid of debt, gives you goals and accountability to save money, and works on your behalf to manage negotiations with creditors. Professional debt relief can help you save time while reducing your stress. Learn more in this debt settlement comprehensive guide.

Before you choose bankruptcy or debt settlement, keep in mind that all of these options have serious negative consequences on your credit. Bankruptcy stays on your credit report for up to 10 years. You can rebuild your credit score after a bankruptcy or debt settlement, but it might take a few years before you can qualify for home mortgage loans or other credit accounts again.

If you want to take the reins in paying your debt without filing bankruptcy, debt settlement can often help you get faster results. Working with a professional debt settlement company like Freedom Debt Relief gives you structure, and the support of having someone on your side to negotiate with creditors. 

Ready to take the first step? Get a free debt evaluation from Freedom Debt Relief. We’ll help you understand your options so you can make a choice that works for you.  

People just like you are seeking debt relief in Buffalo, NY and across the country. The first step is the most important one—explore your options.

Make the Most of Moving Back in With Mom and Dad

Many young adults find moving back in with parents is a relief and a comfort—and a great chance to improve personal finances. Use this time to make big progress toward your goals, such as paying off debt, fixing your credit, saving money, and getting ready to make your next move. 

A note to parents: Work as a team with your adult child. You don’t have to let your adult child live rent-free, or raid the fridge without chipping in for groceries. Instead, make a plan for how to share the monthly bills and help your child work toward financial independence.