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Entries in Parents (5)

Wednesday
Oct172012

More Adults Living with Their Parents, Survey Finds

Stockbyte/Thinkstock(NEW YORK) -- More adults are moving in with their parents.  A new survey by PulteGroup, one of America’s biggest homebuilders, says almost one third of homeowners expect their grown children or parents to live with them.

USA Today says the survey shows that the rise in multi-generational households might continue.

“It’s an enormous change,” Stephen Melman, director of economic services at the National Association of Home Builders, told the newspaper.  “I remember when I was in college, no one wanted to be near their parents.”

Some of the change is clearly the result of economic stress and the weak jobs market.  But a smaller generational divide between baby-boomer parents and their 20-something children might also be a cause.

Copyright 2012 ABC News Radio

Wednesday
Aug012012

A Quarter of Young Adults Lived with Parents During Great Recession Peak

Stockbyte/Thinkstock(COLUMBUS, Ohio) -- The first thing young adults usually want to do is leave the nest, but sometimes life has other plans.

An analysis by Ohio State University reveals that 24 percent of people ages 20 to 34 lived at home with their parents during the peak years of the Great Recession from 2007 through 2009.  That’s substantially higher than the 17 percent in 1980 who didn’t move out of the house.

The OSU study also shows that 43 percent of people under 25 were home dwellers during the Great Recession compared to 32 percent of that age group 30 years ago.

Times were so tough from 2007 to 2009 that one in ten people ages 30 to 34 also found it necessary to live off the kindness of mom and dad.  And of this group, 20 percent did so because of divorce.

Overall, more men than women shacked up with their parents, often because they marry later, but also because their parents don’t pressure them into cooking and cleaning.

The main reasons for the migration back home, the study found, had to do with high unemployment, massive student loan debt and general financial insecurity.  One group that didn't change their living habits was graduate students, with 8 percent living at home in 1980 and the same percentage during the worst of the economic downturn.

Copyright 2012 ABC News Radio

Wednesday
Aug312011

Day Care Now Costs More than College, Study Finds

Jupiterimages/Thinkstock(ARLINGTON, Va.) -- Parents of newborn children are likely dreading the prospect of sending their kids to college, figuring the cost in 2029 will be astronomical.

But they better start saving their pennies now, because day care costs are exceeding the tuition of some four-year colleges.

According to a study by the National Association of Child Care Resource & Referral Agencies, one year of infant day care exceeds the cost of public colleges in 36 states and the District of Columbia, where it's a whopping $18,200.

Putting kids in Mississippi day care centers is a relative bargain at around $4,650 annually.

Parents better start shopping around for bargains where they can find them because the cost of day care goes up every year, not down.  It increased 1.9 percent on average nationally over the past year because of the rising price of food and labor.

Copyright 2011 ABC News Radio

Monday
Aug152011

Back to School: How Not to Pay Full Price

Stockbyte/Thinkstock(NEW YORK) -- It's almost time for kids to go back to school, and that means parents will be getting ready to shell out big bucks to get their children ready for the upcoming academic year.

In fact, the average parent spends about $600 per child.

So how can parents save money on back to school items?  One suggestion is to buy used when possible.

School Supplies

When it comes to supplies -- pencils, pens, scissors and binders -- there are very few places that have all these items used, so you should buy new.  But that doesn't mean you have to pay full price.

The latest trend in back to school bargains is to shop for basics at dollar stores.

Clothes

This is a tough one, because back to school shopping is a tradition and it gets kids a little excited about the prospect of returning to class.  But it can get expensive.  You should buy new and buy used.

First, get some basic second-hand pieces.  Of course, trying to hit garage sales can be time-consuming.  If you have a smartphone, check out this new app called iGarageSale.  It lets you search garage sales listed on Craigslist by the type of item you're looking for.  The app knows your location, and maps out all the local sales that match your search.

But shopping in stores is a tradition, so set a budget with your kids and make it about finding those two or three special items that get your kids excited about going back to school.

Sports Equipment

Families spend hundreds of dollars per child, per sport, on athletic equipment.  And kids grow out of it fast.

One option is to shop on eBay, but it's hard to get a good fit and feel for equipment.  A better option is to find a used sporting goods store, such as Play It Again Sports.  This chain has hundreds of locations and you can find lots of items for a fraction of the cost.

So, for sports equipment, you should buy used -- but with one exception: You should always buy helmets new.

Copyright 2011 ABC News Radio

Saturday
Nov132010

'Son, Can You Spare a Signature?' Kids Co-Sign for Hard-Up Parents

Photo Courtesy - Getty Images(MIAMI) -- "Son, can you co-sign for my car?" That's the kind of question more adult children have heard from parents hit hard by the great recession.

Evidence of such an increasingly popular arrangement has popped up in a few places. Although the number of parents co-signing for adult children has risen to 11 percent from 9 percent in the past two years, the number of adult children helping parents with a car lease has increased more than 30 percent, according to LeaseTrader.com, an online car-leasing website.

The adult children, defined as people ages 20 to 29, have been assisting parents who are 40 to 55.

Foreclosures, unemployment and the overall health of consumer credit may be "forcing adults to make this decision and take this alternative approach," says John Sternal, vice president of marketing communications at Miami-based LeaseTrader.com.

But the financial alternative comes with pitfalls when a co-signer becomes liable for the full loan if a parent fails to pay.

"One of the problems of co-signing is you usually don't know there's a problem until the loan is in default," says Rick Kahler, a financial planner at Kahler Financial Group in Rapid City, S.D.

"If a payment is missed, you're one of the last to find out."

A collection agency will go after a co-signer as aggressively as the original debtor. And, unfortunately, unlike a bank, a co-signer cannot repossess an auto loan if parents fall behind on a financial obligation. A parent's failure to make timely payments could also result in higher interest for credit cards and other lines of a credit, and could affect mortgage approval rates.

What's more, co-signing on a loan turns a familial relationship into a business one.

"You have to be ready to pay off that loan," Kahler says.

"If you think it's a wise thing to do, then, of course, go for it but you still must say, 'I'm going to be just fine if I have to step in and make this good because that's the bottom line.' The bottom line is you've got to be ready to pay off that note."

Copyright 2010 ABC News Radio







ABC News Radio