Houston Police Federal Credit Union Offers Financial Tips for Families Welcoming Boomerang Kids Back Home
An estimated 55,000 young adult men and women in Houston live with mom and dad
HOUSTON, June 6, 2016 – Houston Police Federal Credit Union (https://hpfcu.org), a non-profit organization that manages the financial resources of active and retired Houston Police Officers , Houston Police Department Civilian Employees and their families, has some helpful recommendations for Houstonians opening their doors to sons and daughters who have recently graduated from college. They are called “boomerang children,” and they are more common than ever.
According to the most recent data from the U.S. Census Bureau, the percentage of adults between the ages of 25 and 34 living with their parents hit a historic high of 15 percent in 2015. In the city of Houston alone, that would total nearly 55,000 boomerangs, which means tens of thousands of Houston families are coping with the emotional and financial stress that comes with having an adult child return home.
“It can be a challenge for young adults to gain their financial footing, especially considering that nearly 60 percent of Texas graduates carry student loan debt averaging more than $26,000,” said Darlene Davis, Vice President of Member Services with Houston Police Federal Credit Union. “When graduates and other young adults return home, the arrangements can cause feelings of shame, frustration and guilt. Having a game plan is essential.”
Houston Police Federal Credit Union offers the following recommendations:
Get on the same page with your spouse or partner. Before introducing any arrangement with an adult child, there needs to be complete agreement between the heads of household on everything from house rules to how chores are handled.
Keep communication open. Nothing creates drama and dysfunction like letting little things build up and eventually explode. Is he or she channel surfing rather than building their resume? When something is bothering you, talk it over – even when it’s uncomfortable.
Protect your retirement plan. Even though you are helping your adult child, nothing is more important than protecting the family’s financial future. Avoid tapping into retirement accounts and do not take on their student debt obligations. They have way more time to save than you do.
Agree on a time limit. It can be three or six months, or even a year or more in some cases. Well in advance of the deadline, be a positive force by helping your adult child examine potential new living arrangements and the financial obligations that accompany them.
Define how household and living expenses will be handled. Some families require payments for rent, groceries and utilities. Others feel those payments delay the ultimate goal: helping the young adult save money to get a place of their own. A compromise is to set aside their payments in a savings account that can serve as an emergency fund when they move out.
Offer financial advice. Perhaps the greatest value to your adult child is your financial wisdom. Help them create a budget. Involve them in reviewing and paying the household bills.
An essential step in helping new graduates achieve financial independence is to open a checking and/or savings account. To get that process started, Houston Police Federal Credit Union is currently offering a free selfie stick when a child or other family member of a Credit Union member signs up for membership (offer expires July 31, 2016). The one-time membership fee is $0.25 and a minimum deposit can be as little as a $5.
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About Houston Police Federal Credit Union
Houston Police Federal Credit Union was established in 1937 as a non-profit organization to serve Houston's Finest – the men and women in the City of Houston law enforcement profession, and their families – with a commitment to the needs of members and prudent management of their financial resources. Today, Houston Police Federal Credit Union is a major financial institution with over $611 million in assets and over 25,000 members. We have 3 convenient office locations along with over 110 free ATMs in Houston and the surrounding areas. Learn more at www.hpfcu.org.
Photo by Keith Parker