Would You Want Your Parents to Live With You When Your 40?

It’s Time to Have an Adult Conversation about

Financial Planning.


Buying your first home is one of the most gratifying and freeing experiences that young adults experience.  Many young adults cannot wait to move out of their parents home and start a life of their own.  However, what happens when your parents want to move  in with you?  Parents that fail to develop a financial plan often experience financial difficulties later on in life, and as a result may have to move in with their children.  If you value your freedom, and want to keep your parents our of your house, then it may be time to have an adult conversation with your parents about financial planning.



It has become highly common in the U.S. for children fresh out of college to move back in with their parents.  Adult children who have found difficulty finding work have moved back in with their baby boomer parents in order to decrease living expenses associated with living on their own.  Many parents and adult children are becoming frustrated by this epidemic.

However, there is another trend that people rarely talk about; parents moving in with their adult children.  Multi-generational households are becoming more and more common in the United States.  According to the National Association of Professional Geriatric Care Managers:

  • From 2000-20007, the number of parents moving in with their parents increased from 2.2 million to 3.6 million.  This represented a 64% increase.

Causes of Parents Moving In


Parents often cite a variety of reasons for moving in with their adult children.  This includes medical necessity and being closer to the grandchildren.  Nevertheless, one of the biggest reasons for parents moving in with their children is financial.  Many retirees have difficulty in covering the various living expenses after retirement.  This is due to a number of reasons including:

  • Longer Life Spans
  • Rising Health Care Costs
  • Poor Financial Planning

Problems Associated with Parents Moving In


Crossing State Lines

There are many problems that can occur if your parents cross state lines when moving in with you.  Prior to your parents moving in you should ask yourself the following questions:

  • Are there qualified doctors nearby?
  • Do these doctors accept Medicare?
  • Who will pay the medical bills that are not covered by Medicare or insurance?
  • Is supplemental insurance readily transferable? (Some insurance policies require residency for 6 months before transfer)
  • What will happen if your parent needs medical treatment prior to the insurance transfer?

Hidden Expenses

Many people overlook certain costs that accompany having your parents move in you.  Hidden costs can cause a toll on your family’s finance.  It is important to conduct a thorough investigation prior to having your parents move in with you.  Several hidden expenses include:

  • Increased Utility Bills
  • Increased Food Expenses
  • Dietary Restrictions
  • Home Renovations (grab bars for the shower, ramps, furniture, stair lifts, room modifications, widening of doorways for wheelchairs, etc.)

Emotional Toll

Having your parents move in with you can be hard on your finances.  However, the emotional toll can often be most burdensome.  Learning to cope with new living arrangements can be difficult.  Common emotional conflicts include:

  • Care Taker Role
  • Less Space
  • Less Privacy
  • Relationship Conflicts

Financial Planning


What is Financial Planning?

Financial planning is defined at the process of meeting life goals through the proper management of personal finances.  Proper financial planning is essential in order to prevent your parents from moving in with you.

Cost of Retirement

Many retirees fail to plan their finances prior to retirement.  Retirees often fail to save enough money to cover rising living expenses associated with inflation.  According to a survey by EBRI:

  • One in three adults is not confident that they will have enough money to retire comfortably.

How can a Financial Advisor Help?

Financial advisors are highly useful in developing a personalized comprehensive financial plan.  Financial advisors are trained professionals who are qualified to help you or your parent prepare for retirement.  Financial advisors can help with financial planning aspects such as:

  • Estate planning
  • Risk management
  • Cash flow management
  • Estate planning
  • Tax planning
  • Investment management
  • Retirement planning



Having your parents move in with you as an adult can be a highly stressful situation.  The added financial and emotional stress of your parents moving in with you can be overwhelming.  Financial planning is the key to prevent your parents from moving in with you.  Proper financial planning will allow your parents to retire comfortably, without your financial assistance.  Talk to your parents today about financial planning and if they are prepared for the future.


Right Financial Advisor’s Nick Bredow, contributed this report.


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