Every parent wants to set their child up for success. One decision families could make to help, is to let their children live at home for longer.
It's a growing trend in Canada. According to the latest statistics available, there were 4.3 million young adults aged 20 to 29 in Canada in 2011.
42 per cent of them lived with their parents.
Compare that to 30 years earlier in 1981, when 27 per cent lived at home.
Statistics Canada also found in 2011 that 90 per cent of stay-at-home adult children did not contribute financially to the household.
NOT EVERY SITUATION IS THE SAME
At Tina and Samantha Lussier's Winnipeg home, every chore is a shared task – from making lunch to doing laundry.
Tina is Samantha’s mother. Samantha is 26-years-old.
"She does my laundry now," said Tina.
"We worked out an arrangement where I wash all the laundry on Sunday as long as she folds it," replied Samantha.
The mother and daughter duo have lived together like this since May 2011.
Over the years circumstances kept changing, keeping the pair under the same roof.
"I stayed to help myself through school and ease some of that financial strain," said Samantha who is currently studying to become a professional photographer.
However, the one thing that has stayed the same is their living arrangement agreement.
"I am her mother, she respects me as her mother,” said Tina. “But living here together, we are roommates."
"If one of us aren't really following those rules, or if something happens where one of us is annoyed, we'll say to each other 'that's not what a roommate does’," said Samantha.
Everything from rent, to bills, and food are all split right down the middle – a symbiotic relationship allowing each of them to save money.
MOTIVATING YOUNG ADULTS
Kelley Post has written a book for parents to help motivate young adult children. It’s called Yes You Can! Bloom Where You Are Planted.
"It gets very frustrating, the frustration is probably the biggest dilemma," Post said. "They don't need to follow your plans. It's their plans they need to follow through with."
She said a parent supporting their kids’ dreams is the first step.
"One of the best times to start encouraging a young adult is just before they're a young adult. Asking them the questions."
Some of her starting points to motivating a move out are:
- Having a conversation about what the young adult wants to do with their education. Do they need to go back to school? Or do they want to start working?
- Talk about what the plans would be if they were to move out. What will be their source of income?
- Ultimatums can work, Post said, but they have to be a mutual agreement because this is an adult to adult relationship.
- One alternative is to charge rent.
FINANCIAL COMPROMISE
Treena Nault is a financial consultant with Investors Group in Winnipeg, she also has a 20-year-old daughter living at home.
She said in some cases, parents are giving up their financial future to pay for an adult child living at home.
"If the expenses due to having the adult child living at home are increased, then sometimes that means that their retirement goals have to be pushed out, they may have to delay them," Nault said.
According to Nault, if a parent is paying $500 a month extra to cover things like groceries, a cell phone, and car expenses for their adult child, that adds up to $6,000 per year.
If that $6,000 was saved each year over 10 years instead, with a 5 per cent annual rate of return, it would grow to about $75,500.
"It can be a burden on a parent of course, but you are really giving your child a great start in life,” Nault said. “They can potentially be saving money for a down payment on a home and on the other side, they can stay out of debt."
The 2011 census also showed more than half of Canadian young adults living at home are in school.
"They want me to succeed in life so they don't want me to be in $100,000 debt by the time I graduate," said university student, Orie Hochman, who lives with parents.
"It was more of just a set thing when I was finishing high school,” added student Gavin Shapera. “You go to school, you can live at home and have a stable job and just help out around the house."
Right now that's the case for the Lussier's.
Samantha is about to graduate and plans to move out from her shared living space once her photography business is on its feet.