BACK TO THE NEST
Are you among the college graduates who have moved back home this year? Don’t sweat it, because you’re not alone. About 48% of the class of 2006 is estimated to have returned home, and with good reasons.
It’s safe, it’s secure and it’s convenient, especially when there are car payments and job searching to worry about. Quite frankly, all those years living in a dorm room may not have prepared you for the big step of setting up house on your own.
Fortunately, many parents are embracing their “boomerang” children, so graduates can work and save money towards a down payment on a home. If you are among these parents or graduates, you’ll find it useful to establish ground rules while working toward the goal of home ownership.
First, set a deadline for moving out, and work hard towards achieving it. It may mean taking a “survival job” until the career of your dreams comes along. Strongly consider developing good payment habits by paying rent to your parents. Parents, if you’re not comfortable keeping your kid’s cash, put it away for them to use for a down payment later.
Rents around the country are rising, and moving home can provide an opportunity to save money and work towards the American Dream of home ownership. Now more than ever, it’s becoming an accepted right of passage.