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.

College Students Declaring Bankruptcy

Americans filing for bankruptcy grew 30% in 2005 to the highest level ever. Per the Administrative Office of the U.S. Courts, personal bankruptcy filings were in excess of 2 million in 2005.

Unfortunately young adults in college were probably a significant portion of this total.

A major cause of personal bankruptcy amoung young people is the lack of understanding of money management basics. Since schools rarely teach money management and personal finance classes to young people, it becomes the responsibility of parents to teach money skills to their kids.

http://collegeinfoforparents.blogspot.com/ regularly posts suggestions on how to teach your kids money management skills. Quick lessons on basic personal finance topics will also be posted.