Moving Back in With Mom and Dad — How to Make the Money Work
ByBen Gran
UpdatedMay 20, 2025
- Many young adults are moving back in with mom and dad to save on housing costs.
- In a multigenerational household, it’s important for everyone to be in agreement about money—such as fun money vs. monthly bills.
- Parents need to keep saving for retirement, while the younger generation should set specific goals for their next steps in life.
For many young adults, moving back in with mom and dad 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.
Some young adults might choose to move back in with mom and dad to rebuild their finances after some 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 mom and dad is nothing to feel bad about. This kind of family-friendly housing arrangement can be especially good news for your bank account.
When you move back in with mom and dad, everyone can benefit. Parents and adult children can cut their housing costs, save money on groceries, and boost their personal finances.
Before you move back in with your folks, it’s important for everyone to set some rules and make agreements upfront about how to manage money while living together.
Here are a few tips on how to make moving back in with mom and dad a win-win for everyone’s wallet.
Moving Back In With Mom and Dad Is Normal
Don’t feel as if moving back in with mom and dad is a step back in life. In fact, it’s pretty common. In 2024, about a third of American young adults 18 to 34 were living with their parents, according to Pew Research. And only 45% of young adults in this age group were completely financially independent.
There are a few reasons why young people today might want to live with their parents, even after 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 why people used to move out of their parents’ homes. But more young Americans are delaying getting married than previous generations, or 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 ranges from $38,375 to $41,618. 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 with mom and dad can often be a smart move for your personal finances.
How to Make Money Work for Parents and Adult Kids Living Together
Moving back in with mom and dad 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 after moving back in with mom and dad:
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 parents and children 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 of their 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.
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 apartment 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. Whether or not you’re paying rent to your parents, 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 mom and dad, take a step back and think about the big picture. What do you want to gain from this time of living at home with your parents? Set goals. 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?
Talk with your parents about how this temporary living arrangement is helping you move forward with your life plans. That way, everyone in the family can feel more invested in your future success.
Make the Most of Moving Back in With Mom and Dad
Many young adults might discover that moving back in with mom and dad is a relief and a comfort—and a great chance to improve your 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 their financial independence.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during April 2025. The data provides insights about key characteristics of debt relief seekers.
Credit utilization and debt relief
How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In April 2025, people seeking debt relief had an average of 74% credit utilization.
Here are some interesting numbers:
| Credit utilization bucket | Percent of debt relief seekers |
|---|---|
| Over utilized | 30% |
| Very high | 32% |
| High | 19% |
| Medium | 10% |
| Low | 9% |
The statistics refer to people who had a credit card balance greater than $0.
You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to April 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,635.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| District of Columbia | $17,984 | 7 | $24,102 | 81% |
| Alaska | $19,343 | 9 | $28,791 | 79% |
| Arkansas | $14,227 | 9 | $27,261 | 78% |
| Kentucky | $12,929 | 8 | $25,731 | 78% |
| Alabama | $14,363 | 8 | $26,156 | 77% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Ben Gran
Ben Gran is a personal finance writer with years of experience in banking, investing and financial services. A graduate of Rice University, Ben has written financial education content for Business Insider, The Motley Fool, Forbes Advisor, Prudential, Lending Tree, fintech companies, and regional banks like First Horizon.
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