I read a startling article this weekend about College grads that are moving back home after school. They are Gen Y or “The Millennials” and are now being referred to as “Boomerang kids” because they are choosing to return to the nest after college. In fact, an estimated
48 to 66 percent
of this year’s college grads will move back in with their Baby Boomer parents.
The average graduate has $2,200 in credit card debt. Close to two-thirds of college kids have student loans, with an average debt of $17,600, according to the Center for Economic and Policy Research.
What startled me about the article was that while it obviously makes it easier on new grads from a financial perspective – many of them moved back home because they aren’t ready to forego the kind of lifestyle that their parents are able to afford them. I find this slightly revolting:
Many boomers also have more money. So their children, for the most part, are accustomed to cushy nests – nests that are nearly impossible to afford with student loans, meager starter salaries and bloated real estate prices.
I have to say that this return-to-the-nest pattern would be one of the major differences that I can see between my younger siblings and me. They have no real desire or drive to get out of my mom’s house and live on their own. While they may end up being better financial planners thanks to the extra years of mooching that I never had – here are my questions:
- What does this say about their ambition and independence as the next generation of workers?
- Does this change the type of messaging that we might use to reach out to them with recruitment marketing?
- Are American kids beginning to act more like Asian or Hispanic cultures where it is common for children to live with their parents as adults? Will they return the favor and take care of their parents later on?
At least we know from our recent post, GraySpace, that the boomers will have more in common with their “adult” kids than previous generations. 😉