Tuesday, October 31, 2006

College Grads moving back with Parents

Despite a relatively strong job market for new college graduates, many young people are moving back home with their parents. Some of the reasons are excessive debt loads, high costs of housing, and a general inability to meet their expenses. Many students live independently after school, but soon move back home.

How soon do they move back home? - three months of living independently is about as long as many students make it on their own. What is the significance of three months? -Bill collectors start pushing hard after 90 days of late payments! -so this is the time when young people tend to flock back to the nest.

Part of the problem is poor money management skills. Most young people have never been adequately taught how to budget, how to responsibly use credit cards, how to pay bills in a timely manner. Schools rarely teach these skills and parents tend to have little success in adequately training their kids in money skills.