Living at Home is More Common Than Ever

(3 Minute Read) — A recent Investopedia article found that nearly half (49%) of Americans ages 18-29 now live with a parent, a significant increase from just a few years ago. Rising housing costs, higher interest rates, and increased everyday expenses are making it more difficult for young adults to afford independent living.

While living at home can help reduce housing expenses and create an opportunity to save, the article notes that many young adults are still facing financial challenges. Nearly half reported receiving financial assistance from family or others to help cover essentials such as rent, utilities, groceries, transportation, and phone bills.

Have a Financial Plan

Whether you’re living independently or with family, having a financial plan can help you make the most of your current situation. Consider the following:

• Creating a monthly budget to track spending and savings
• Building an emergency fund for unexpected expenses
• Paying down high-interest debt
• Setting a savings goal for a future home purchase or rental move
• Taking advantage of lower living costs, when possible, to strengthen your financial foundation

Living at home with family isn’t necessarily a setback. For many people, it’s a practical strategy during a challenging housing market. The key is using the opportunity to work toward long-term financial goals and greater financial independence.

Unitus Tip

If you’re saving for a major milestone like your first home, creating a dedicated savings account and automating deposits can help you stay on track and make steady progress toward your goal.