Here are some tips to parents who have adult children living with them.

  • Make sure they have health insurance
  • Charge them rent (you can always give it back to them in a gift after they move out).
  • If they are on their own, try to help them stay on their own.

And the conclusion

“How do you know that your days of bailing out your kids should come to an end?…Are they working hard? Are they progressing in terms of saving toward their exit goal? If the answers are yes, you’re doing the right thing, and full independence will likely come about on its own. But if you see that your kid is coasting and not saving a dime, your contribution might be crippling him. You may want to push him out early.”

“Today’s young adults are definitely spending, and it’s one big reason that today’s young adults have less net worth than young adults 15 to 20 years ago. If your child is buying a better car than you or taking better trips, it’s time for them to move out.”