Have you considered moving back in with your parents?
Well, according to Finder's latest research, more and more Australians are moving back in with their parents as the cost of living continues to spiral.
In fact, the survey with 1,058 respondents revealed that 13% of Australians – equivalent to 858,000 households – have had an adult child move back home in the past 12 months.
This includes 5% who are about to move back out and 4% who are about to move in.
Why is this happening?
The research shows that 1 in 3 (36%) moved back home due to caring requirements, while 1 in 10 (10%) used it as an opportunity to save money.
Ms Sarah Megginson, Senior Editor of Money at Finder explains that Aussies had been forced to make significant changes to their lifestyle.
She further explained:
“Interest rates are going up and the cost of living pressure is coming from all angles, making it difficult to juggle everything at once.
Moving back in with the family can be a big adjustment. The thought of losing a sense of independence and having to start from scratch is scary.
But it’s a chance to get your finances in order and settle any debts before jumping back out there.”
Ms Megginson said the pandemic saw the first wave of ‘kidults’ moving back home when COVID-19 hit our shores.
In fact, more than 1 in 4 (26%) Australian households included an adult child after the lockdowns began.
She further commented:
“Our research found that 21% of these households were put in this situation as a reaction to COVID-19.
With inflation soaring and rental vacancies at an all-time low two years on, the phenomenon continues."
How can we cope with the current financial situation?
Ms Megginson said it was critical to stick to a budget, start cutting out non-essentials and look at where and how you can save money.
She also shared some tips on how to build your wealth such as:
- Work towards a goal. Savings goals are easier to achieve if they're specific, so work out a figure and write it somewhere you'll see often to keep you on track. Try to aim for at least 3 months' worth of living expenses saved.
- Track your expenses. Take a look at your transactions for the last few months and what you're spending on living expenses versus everything else. Money management apps can help you see your income and expenses all in one place. From here, you should be able to find opportunities to cut back on your spending and work out how much you can realistically save each month.
- Use your existing savings to grow your wealth. Don’t just let it sit there. One option is to open a high-interest savings account and earn bonus interest on your balance when you meet the account conditions each month.
