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According to the Office for National Statistics, around 25% of 20 to 34-year-olds are living with their parents, up from 21% in 1996.


And the latest figures from Mintel show that 1.5% of all 25 to 34-year-olds moved back home in the last 12 months. It might not sound like many – but this is actually a whopping 120,000 young “boomerangers”, heading home after uni or a spell of independent living.


The “bunking-in with mum and dad” trend isn’t only happening on this side of the Atlantic: a study in 2016 found that more people aged 18 to 34 in the US were residing at home than in any other living arrangement.


Living at home with your parents, as an adult, isn’t a new phenomenon: back in the 1940s, staying at home until you got married was the norm.


In the current economy, with salaries stuck and the cost of living going up, it’s really hard to get on the housing ladder. Soaring rents and the sheer amount of money needed for a deposit are enough to make anyone think twice about ditching the comfort (and affordability!) of their childhood bedroom.


If you’re lucky enough to have the option - and weighing-up staying at home vs. going it alone - here are some things to consider:



The cost of renting

The biggest perk of getting your own place is having more independence and personal space: so the hefty cost of renting could be a price worth paying.


According to the latest data from the HomeLet Rental Index, the average rent in the UK is £895 per month - a pretty big dent in your monthly income.


But there are cheaper ways of renting. You could look at creative options, like living on a boat, becoming a lodger or even property guardianship.



If you decide to rent, here are some top tips:

  1. Avoid moving in with people at different life stages to you – your expectations (and lifestyles) might not be a good match
  2. Stay on the same page as your housemates – make a formal agreement about what you’ll all be paying
  3. Make sure your deposit is in a deposit protection scheme - don’t lose money to an unscrupulous landlord
  4. Avoid opening a joint bank account with housemates - you risk affecting your credit rating



The cost of living at home

At home with your folks, you’ll probably benefit from reduced living costs – otherwise known as greater financial security.


Staying there might mean sacrificing a level of independence, but if you can save-up for a deposit for your first home, or whatever future plans you have, it could be worth it.



If you decide to stay at home, here are some top tips:

  1. Don’t treat your parents’ home like a hotel – if you want to keep a good relationship going with them, practice being a “good lodger”
  2. Offer to pay a reasonable amount of “rent” – don’t assume you can live there indefinitely without contributing to household costs
  3. Open an account for the money you’re saving – it’s rewarding to see the cash stack up
  4. Beware false economies – if staying at home is making you miserable, or you’re spending all the money you’re saving on your social life, moving out might be a better option



Get yourself a savings plan and budget

Whether you stay at home or decide to rent, it pays to start a savings plan.


Everyone needs money to get by, whether it’s paying for an MOT or going out with your mates. But if you don’t save regularly you might not reach life’s bigger goals, like buying your own place or going on a dream holiday.


Whatever your living arrangements, try to get your budgeting and finances organised.


How much you save depends on how much you earn – and how you manage your money. Finding out how much you could save in the coming years is great motivation for reaching your future goals.


Find out how you much you could save for your future self with this quick and easy savings tool

1. Find out how much you could save for the future

Essential costs are things like rent/mortgage, utility bills, train fares and childcare. These are your fixed costs.

2. What your future savings could look like

These calculations do not include the interest your savings will earn you over time. Any pay rises or promotions will also help you increase your savings potential, as well as any opportunities to make extra money or reduce bills.

3. Your future savings budget breakdown*

4. Working out how to budget and save each month

The key to achieving your savings goals is to clear any debt first and then to save regularly!

Get into a savings habit and whatever you can afford to put away each month will soon add up over time. Your future self will thank you for it.

And remember FSCS protects your savings for free, from as little as £1 up to £85,000. Check your savings provider is FSCS protected.

FSCS protected

You can also get better control of your finances by checking out 10 of the best free online budget planners.


FSCS, the people who protect your money in UK banks building societies and credit unions for free. From £1 up to £85,000, your money is protected. 


What is Money Means? 

Money Means is a news and information series written by independent financial and consumer journalists and experts**. FSCS launched Money Means in 2016 to help give people clear and useful information about personal finance, to increase understanding and confidence when dealing with money.



9/8/2017 2:31:46 PM