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During the past seven or eight years, it has become increasingly common for young adults to move back home with their parents after going to college or being out on their own. The recession forced the choice on many young adults who could not find jobs that paid sufficiently to allow them to pay their rent. Additionally, growing student loan debt, now averaging $40,499 for undergraduates who took out loans, is also making many young adults consider saving some money by living at home again.
Your parents will likely work out a reduced rent charge for you that is well below the market rate. Some may even let you move back home for free, especially if you have expressed intentions to use the rent money you are saving to get out of debt quickly or for saving towards a goal.
Chances are, your parents will be happy to have you join the family for dinners at least some of the time. This saves you money because you are not dining out or making food for just one person. You may even be able to get leftovers to eat for lunch the next day.
The money you save by living at home can free up your income to pursue your financial goals. Perhaps you want to get out of student loan debt within two years, or you want to save up a down payment so you can buy a house of your own instead of renting.
While living away from home, you got used to being out from the watchful eye of your parents. Even though you are all adults now, they are still your parents, and you will still feel like they have some authority over your life.
If you did not have your parents’ welcome mat as a safety cushion, you would probably work harder to find a job that will allow you to pay your bills on your own. It can be tempting to be a little lazy about job searching and tight budgeting if you are living at home.