Living at home with your parents might not be your dream situation,but it could be your smartest move. More than half of Americans between the ages of 18 and 29 now live with one or both parents. This living arrangement has become the most common among young adults for the first time since the Great Depression, according to the Pew Research Center.
If you’re among them, you’re not falling behind. You’re stepping into an opportunity. Living with parents, when approached with purpose, can help you eliminate debt, build savings, develop life skills, and transition into financial independence on your own terms.
Here’s how to how to make the most of this unique situation. Whether you’re working, in school, or figuring out your next move, the time you spend living at home can put you years ahead,if you plan ahead and stay intentional.
Rent is expensive. So are utilities, groceries, internet, and gas. The monthly cost of living on your own can quickly exceed your income, especially if you’re just starting your career or still finishing school.
Living at home can significantly lower your expenses. And while it might feel like you’re putting your life on hold, you’re actually giving yourself space to move forward without falling into common financial traps.
Instead of paying rent, you can:
The key is not just avoiding expenses,it’s using the opportunity to plan, act, and grow.
Moving back in doesn’t mean staying stuck. It’s a chance to reset, regroup, and get ready to take on the world with more confidence. Use this time to reflect on what kind of future you want,both in terms of your career and the kind of environment you want to live in.
Many young adults who’ve decided to stay home for now are also building habits that will serve them well in adulthood. Watch trends in the economy, stay informed, and start planning,not just for when you’ll move out, but how you’ll thrive once you do.
One of the most important steps to a successful living situation is to set boundaries. You’re an adult now, and you should live like one,even in your parents’ home.
Here are important questions to ask and answer:
Write down the agreements if needed. Keep things flexible, but be clear. Setting boundaries prevents confusion and makes day-to-day living smoother for everyone involved.
Respect works both ways. Your family should respect your independence and goals, and you should respect their routines and expectations.
A growing number of Americans live in multigenerational households. These are homes where more than two generations of family members live together. According to the Pew Research Center, this trend has been rising for decades and shows no signs of slowing down.
In these households, responsibilities are often shared. Expenses are divided. Emotional support is more readily available. Grandparents may help raise children. Adult children may assist aging parents. It’s not just about saving money,it’s about creating community and mutual care.
If you’re part of a multigenerational home, make the most of it. Learn from older relatives. Help out where needed. Use the structure to build discipline and patience. These homes work best when everyone contributes in a way that fits their skills, schedules, and goals.
Avoiding rent is helpful. But unless you have a clear goal, your savings can disappear without you realizing it. Make your money count by setting specific targets and tracking your progress.
Start by estimating how much you’re saving each month by living at home. Use local rent averages to calculate how much you would be paying if you lived alone. Then compare that to what you’re currently spending.
For example:
Now, create a plan. Are you saving for:
Use Credit.org’s budgeting calculator to build a plan that fits your income and your goals. Then learn how to manage your savings account effectively and automate your transfers to keep growing your balance.
Saving with purpose leads to better results and gives you the motivation to stick with your plan.
Your time at home should be more than just comfortable,it should be productive. Use it to build habits that will help you succeed when you live on your own.
These daily habits can help:
Even if you’re not covering all household expenses yet, start acting like you are. Set a “mock rent” and transfer it to savings. Keep receipts. Practice reviewing your credit report. Start building a routine you’ll be proud to continue after you move out.
Use to estimate expenses you’ll need to manage later.
You’re not just saving money,you’re learning how to manage it.
-min.webp)
One of the best ways to use your time at home is to eliminate debt. Without a rent payment, you can put more money toward student loans, credit card balances, or a car loan. This puts you in a stronger financial position when you’re ready to move out.
Start by listing all your debts:
Choose a strategy that works for you:
Make more than the minimum payment whenever possible. Even small extra payments can speed up your progress. For example, adding $100 per month toward your student loans now could save you years of payments later.
Living at home often gives you more freedom to work on your career or return to college. With lower expenses, you can invest in professional development without worrying about making rent.
Here are ways to grow:
Use your time at home to gain experience. Even short-term roles can build your skills and help you explore new paths. Your parents may be more supportive of these decisions when they see you using your time to move forward.
Living in your parents home as an adult isn’t always easy. You might feel embarrassed, frustrated, or stuck. These feelings are normal, but they don’t have to stop you from growing.
Here’s how to deal with those emotions:
You’re not alone. Many young people are doing the same thing,working hard, living at home, and planning for a better future.
Remind yourself why you made this choice. Saving money, gaining independence, and building your future is worth a little discomfort now.
Your time at home can also be a chance to improve your relationship with your family. Showing that you’re responsible, thoughtful, and supportive can help rebuild trust and open communication.
Ways to build stronger relationships:
If you’re part of a multigenerational household, support can go both ways. You may be able to help an aging relative with daily tasks or provide companionship. These small acts go a long way and help the whole household run more smoothly.
Eventually, you’ll be ready to leave. Create a plan for what that move will look like.
Start by setting a goal:
If your goal is to buy your own house, use this time to improve your credit score and research down payment assistance programs. For more information, visit .
Set a target move-out date, even if it’s flexible. Having a timeline will keep you focused and motivated.
Need help getting started? Use our guide to financial goal-setting to clarify your priorities and create a workable plan
Here’s one example: Carlos, 27, moved back home after losing his job. He had $12,000 in credit card debt and $20,000 in student loans. Over 18 months, he worked full-time, paid off all his credit cards, and saved $10,000.
He also used the time to learn how to cook, fix his credit, and find a new career path. When he moved out, he wasn’t stressed, he was prepared.
This season of your life won’t last forever. But how you use it matters. Living at home can:
You’re not stuck. You’re laying the groundwork for what comes next.
For many young adults, moving back in with parents is not just a financial decision,it’s an emotional one. Maybe your job situation changed, your plans didn’t work out, or you simply needed to save money. That’s okay. But it’s also okay to admit that it’s hard.
You might feel like you’re falling behind. It can hurt your confidence or affect your relationship with your family. That’s why it’s important to create space for conversation,not just about money, but about feelings too.
Start small:
Living at home doesn’t mean you’ve failed. The reality is that lots of adults are doing the same thing,and finding their way forward. There is always hope when you’re honest with yourself and take small steps to grow.
Multigenerational households are more common than ever. In fact, recent data shows that millions of young adults now live with their parents or other relatives. But just because you share a roof doesn’t mean you share the same lifestyle,or expectations.
To make this setup work:
Don’t wait for conflict to force a conversation. Sit down with your family and agree on how to handle chores, bills, and quiet time. Use real examples from your daily life to keep things simple.
Living with parents doesn’t mean giving up your independence. It’s about cooperation, communication, and showing that you’re ready for the next phase of adulthood.
You don’t need to cover rent to show that you’re financially responsible. Many families just want to see their adult children making an effort.
Here are some easy ways to help:
If you’re working a job or side hustle, create a simple budget that includes your share of household expenses. Show that you’re thinking long-term, not just coasting.
Remember, the goal isn’t just to help out, it’s to prove you’re moving forward.
The hardest part of living at home again may not be the space, it’s the dynamic. Your mother or father may still see you as a teenager, not an adult. That’s where clear boundaries and new routines can help.
Try this:
Little by little, you’ll shift the relationship. Be calm, respectful, and proactive. Even one real conversation about expectations can change everything.
Living with parents isn’t easy, but it can work, especially if both sides treat it as temporary and growth-focused. The more you take charge, the faster you’ll get to where you want to be.
Living with parents offers young adults a rare opportunity to reset, build confidence, and save money. In a multigenerational household, respect, planning, and cooperation are key. Whether you’re dealing with student debt, working a part-time job, or going back to college, you can cope with stress and still move forward. Many people realize too late how valuable this time can be. Be grateful for the support, set boundaries that work, and focus on building your future. One step at a time, you’re preparing for your own house and a stronger life ahead.
Need support while you’re building your plan? Credit.org can help.
Our free services include:
If you need help building a debt payoff plan, review Credit.org’s consumer credit counseling services or speak with a certified counselor for free support. The guidance is confidential, personalized, and designed to help you succeed.
