Aussie parents spending billions to fund adult kids still living at home

More and more adult kids are choosing to stay at home with mum and dad rather than take the leap and move out on their own.

But shocking new findings have revealed that this rising trend is setting Aussie parents back billions of dollars every year, as they fork out to support their grown-up children past the age of 18.

The survey by comparison website mozo.com.au claims that more than a third of Aussies over the age of 18 are still living in their family home, due to pressures such as the increasing cost of living.

But in saving themselves money by not moving out, this generation of ‘kidults’ are costing their parents an added $235 million collectively across Australia each week, or a whopping $12.2 billion every year.

Financial factors, such as unattainable property prices or low wages, were the most common reasons for failure to fly the family nest, accounting for 68 per cent of kids over 18 choosing to stay put.

While reasons such as wanting to stay close to family, and it being the done-thing in different cultures, were also common.

However, the study also showed that, despite the hike in outgoings, the majority of Aussie parents were fine with the arrangement and 30 per cent said they were more than happy to help their adult kids to get ahead by allowing them to stay at home.

Just one in ten parents said they found the situation a financial strain, and three per cent also admitted to resenting their adult children who failed to move out.

Mozo Director Kirsty Lamont said: “Overall, it seems Aussie parents are pretty understanding about their kids’ needing to live at home.

“We all understand that it can be tough when you start out on your own and parents want to help give their kids the best start possible.”

A similar survey recently revealed that the rise in kidults mooching off mum and dad is down to a generational shift, with more young people completing further education and, as a result, moving out and starting families of their own much later. 

And the results also echo the recent case of millennial Michael Rotondo, in New York, USA, whose parents actually took the 30-year-old to court in a bid to get him to move out of their home after he ignored five written notices from them to move out.

Tips for parents of stay-at-home kidults

If your adult child is still living at home, here are some handy hints to help the whole household keep the peace.

• Set the rules. Your kids may be adults and able to run their own lives, but there’s nothing wrong with having a set of rules while you’re all living under the one roof – it’s one of the secrets to getting along with flatmates. So, take an hour or two to sit down with your kidult and lay some ground rules about things like chores, cleanliness, and privacy.
• Be realistic about your budget. While you want to help your kids as much as possible, it’s important not to put too much strain on your own budget. Factor in daily living costs and saving for retirement before deciding if you can afford to support your adult children full-time. If not, you might need to compromise, by having them help out with groceries or pay reduced rent while they save.
• Help keep your kids on track. To help your kids save more effectively, you could suggest setting savings goals, help them to find a side hustle or look for ways to help them streamline their budget. If you’re serious about them building up their emergency fund, you might make one of the rules of them living at home that they need to save at least 50% of their wages every week.
• Try to be understanding. Sometimes, living with your adult children is bound to be stressful or annoying. But a little understanding and open communication – on both sides – goes a long way toward a harmonious household.

What do you think? At what age should your adult children move out?