In recent years, more adult children are moving back in with their parents. Rising housing costs, student loan debt and the cost of living have made it increasingly common for young adults to return home, even temporarily. While having your adult kids living at home can offer support during challenging times, it also brings potential financial stress. That’s why setting financial boundaries with adult children is important for maintaining harmony in your household.

Here are practical tips for managing money with adult children, while keeping your finances and relationships healthy.

 

Have an Honest Money Conversation

Before your adult child moves back home, or as soon as possible if they’re already there, schedule a candid conversation about finances. Discuss expectations, goals and responsibilities. For instance, are they saving for a home, paying off student loans or simply getting back on their feet? Setting clear expectations upfront helps avoid confusion or resentment later.

Sometimes financial advice is better received when it comes from an expert, rather than a parent. If your adult child would prefer to discuss their finances with a neutral party, our Partners in Financial Wellness program, can help discuss your child’s finances and create a personalized plan to meet their needs.

 

Create a Written Agreement

A written agreement may feel formal, but it works. Outline key points like the following.
• Monthly contributions toward rent, utilities or groceries
• Chores and household responsibilities
• A timeline or goals for moving out

Putting financial boundaries with adult children in writing ensures accountability and protects your household from unexpected financial strain.

 

Establish Bill Responsibilities

Even if you don’t charge rent, have your adult child pay for some bills, such as their cell phone, car insurance or streaming services. This approach helps them develop money management skills and keeps them financially engaged, reducing the risk that you’ll unintentionally subsidize all expenses.

 

Encourage Saving and Budgeting

Living at home is a prime opportunity for adult children to get ahead financially. Encourage them to create a budget, build an emergency fund or pay down debt. Suggest that they “pay themselves first” by automatically putting part of their paycheck into savings. These habits support independence and make moving out go smoother.

If your adult child needs help creating and managing a budget, My Financial Partner offers a way for them to organize all their financial information in one place. It’s lets you track spending, set goals and create a budget.

 

Avoid Becoming the Family Bank

It’s tempting to provide repeated financial assistance, but this can create dependency. If you choose to lend money, treat it like a formal loan with clear repayment terms. Protecting your finances while supporting your adult child requires balance, but it’s necessary for long-term stability.

 

Respect Their Independence

Adult kids living at home are no longer teenagers. Give them space to make financial decisions, even if you disagree. Offer guidance, but avoid micromanaging. Developing independence is an essential part of financial growth.

 

Prioritize Your Own Financial Security

While helping adult children is important, your financial well-being should come first. Ensure that supporting them doesn’t derail your retirement plans or long-term goals. Sustainable boundaries keep both you and your adult child on a secure path.

Having adult children living at home doesn’t have to be a financial burden. By setting financial boundaries with adult children and encouraging responsibility, you help them develop independence while maintaining your own financial health.