Moving back home can save money, but only if you plan it right – MoneySense

While moving home can help you achieve your goals faster – paying off debt, replenishing your emergency fund or saving for a home – experts say it’s important that the decision is based on intention and that you have a good plan.

Plan timelines and expectations in advance

Jeri Bittorf, financial wellness coordinator at Resolve Counseling Services, said moving won’t solve all your problems without setting measurable goals. Set a timeline for your savings goal, such as six or 18 months, to keep you on track and so your parents know that you will eventually move.

Bittorf suggested that people think about the hidden costs of living at home. “If you go back to live with family, that does not mean that you no longer have costs,” says Bittorf. “(Your parents) may also be feeling some financial burden right now because of the economy.”

She said it’s important to determine whether you’ll be expected to pay rent or contribute to utilities and groceries. Meanwhile, other expenses may increase, such as gasoline costs, parking fees or public transportation costs due to longer travel distances.

“I have clients who sometimes think, ‘Oh, I’m going to move an hour and a half out of town to live with family,’ and then they don’t realize the commute,” Bittorf said. “That’s not just a financial sacrifice, there’s also an emotional and personal sacrifice of being on the road for three hours a day.”

It’s also easier to fall back into old habits of parent-child roles when you live under the same roof – an age-old challenge. A constant barrage of questions about where you’re going and when you’ll be back, or whether guests will be allowed home, can become overwhelming, Bittorf said. “That can be really hard, especially if you’ve lived alone for an extended period of time,” she said, adding that it may not always be worth the mental peace.

Revisit the arrangement with regular check-ins

Credit Canada CEO Bruce Sellery said: Start by listing the pros and cons to determine if this move is right for you. Some benefits may include higher savings, helping with chores, not having to pay for laundry, and even some logistical benefits like living in a nicer neighborhood again. But it also carries risks of relationship stress, codependency, and holding back your romantic life.

Then think about the ways to mitigate those disadvantages, he said. This means, for example, honest conversations. If someone in their 20s decides to move back home, Sellery says the conversation should be taken as a request, not an announcement. He said this could open a broader conversation about financial goals and whether parents are comfortable with them.

Bittorf said it’s important for the family to be on the same page about expectations and to decide what financial information you want to keep private. “Your family may know you’re moving here because of debt, but that doesn’t mean they can keep asking you, ‘How are you doing on your debt payments? How much money have you made this month?'” she said. “You want to be very clear about the types of questions you are willing to answer.”

But that doesn’t rule out check-ins. Sellery indicates that it is also important to regularly discuss the living situation. “The monthly check-in consists of two questions: what works well and what does not work so well?” he said. That opens up space to talk about solutions to make things work, Sellery said. But if communication breaks down, there is always an option to live separately again.

“It really becomes more of a business relationship in some ways because as a parent you’re not obligated to accommodate a 25-year-old,” Sellery said.

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