Should You Move Home After College?

by on Dec 27 2012 - 21 Comments

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You have moved away from home, studied (sometimes) gotten a degree and are ready to take on the world! Then you realize you can’t pay rent, your loans and eat so you consider moving back home.

This is the situation that many recent graduates are faced with. So the question is, should you move home after college so you can save money and pay off debt?

According to a recent report the average cost of attending a 4-year in-state college during the 2012-2013 school year was about $18,000. This is an increase of 4.2% from the previous school year.

With the average student debt at all-time highs it is important for students to save money and pay off student loans in order to become financially fit. Many college graduates are finding that moving home after college is a great way to begin saving money.

If your parents were cosigners on your student loans they will have a vested interest in seeing you get on your feet and be able to pay off your loans. Even if you got student loans with no cosigner your parents will still want to see that your hard work getting a degree is not squandered.

4 Benefits To Moving Home After College

1) Save money on rent and bills

Depending on where you live, the average price of rent can range anywhere from around $350 to $1,500 or more! You can check average rent prices for homes and apartments in your area at Find the Data.

Living at home will also help you save money on bills such as gas, electric, television and water. Even if you pay a share of these bills at home, it is sure to be much cheaper than paying all of the bills yourself.

2) Live in a familiar town

The job market is competitive. Living at home in a familiar town and around familiar people may give you advantages over others in the current job market. Talk to friends and family to find out who is hiring and where the best jobs are located.

3) Take time to find the right job

Moving home after college can give you more time to focus on finding the right job or the best position in your chosen career. When you don’t have to worry about rent or making ends meet each month, you have more time to spend searching for the right job for you. You may even take time to do volunteer work or take a lower-paying position to get into the career you want.

Being forced to settle get any job to survive immediately out of school could potentially result in you taking a job that does not use your degree or develop your skills.

4) Build good credit

Living at home may also give recent graduates time to build or fix their credit to allow for loan consolidation. It is important to have a good, stable credit score for the future when you want to rent an apartment or purchase a home or car. If you don’t yet have any credit, now is the time to start building it. Paying off your student loans is a good place to start. Making on-time payments and reducing your overall debt is a great way to begin building good credit for the future.

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Life after college can be daunting for young, recent graduates. Besides the tasks of paying rent and bills and finding a job, recent graduates are also overwhelmed with student loan debts. Moving back home to live with family offers many benefits for the recent graduate, including giving them time to start saving money and begin paying down debts.

Jon Haver is the author of Pay My Student Loans.

Editor’s Note: This is a hot topic for many people, and there is a whole range of opinions. I lived at home for a couple of years during college and was able to save money that way. Thankfully I did not have to move back home, and I do see a risk in moving back in that some young adults become very comfortable not having to deal with rent and sometimes even having their laundry done for them! With that being said, I can understand why some individuals choose to move back home to “get on their feet.” If you do plan on moving back home, make it as short-term as possible and make a plan for when you will move out.

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Photo by Nazareth College
 

21 comments
Eyesonthedollar
Eyesonthedollar

I could never have moved back home. My mom would have treated me like I was in high school! I couldn't wait to be on my own and would have had to be in a really bad situation to move home.

KarenLynn
KarenLynn

I recommended my daughter stay home and pay off student loans before she moved out but she is like her Mom and didn't listen....luckily she does not have a huge amount of debt.  I think kids should be financially solvent until they move out and strike out on their own.....great article!  By the way Mr. CBB sent me over here!

Money Life and More
Money Life and More

I moved home for a few months before my job started in October of the year I graduated. It was just an in between thing but it worked out well.

KyleJames1
KyleJames1

Every situation is different. But for me, no way Jose. I was ready to move on and would eat Ramen 3x a day to have my own place. Not because I don't enjoy being around my folks, but because I think we would have drove each other crazy.

Joanna@OurFreakingBudget
Joanna@OurFreakingBudget

Ideally, I think grads should try not to move home. But if it means saving money quickly while still having a good career, it could be a good option. Also, having parents that allow for independence and that respect that you're now an adult is a must! :)

RFIndependence
RFIndependence

Never! Not under torture :) Freedom was so good and being on your own is part of being a responsible adult. It may take more time but your parents don't have to suffer for your poor financial choices.

OneSmartDollar
OneSmartDollar

My sister-in-law just moved home after college and is miserable.  I think there needs to be a trade off between happiness and saving money.

SenseofCents
SenseofCents

If I could have moved back home, then I definitely would have! So many of my friends take this for granted and I could have saved so much money.

MonsterPiggyBank
MonsterPiggyBank

I stayed at home while I was doing my studies and I saved a fortune, I think that if you can handle living with your folks then it's probably fine. Just make sure you have a plan to leave before 30 as it starts getting weird around that age.

GregatClubThrifty
GregatClubThrifty

I moved home, sort of, for about 3 months after college. From there, I decided on where I wanted to go. I can see how it would become very easy for somebody to get stuck at home, however.

DC @ Young Adult Money
DC @ Young Adult Money moderator

 @KyleJames1 Hey, Ramen doesn't sound too bad right about now!  I did live at my parent's house for a while when I was in college, and even tho I wasn't there that long my Mom did drive me crazy.

DC @ Young Adult Money
DC @ Young Adult Money moderator

 @RFIndependence I should point out that some parents like when their kids are around!  My mom would have loved it if I moved home after college.

DC @ Young Adult Money
DC @ Young Adult Money moderator

 @SenseofCents There is definitely some money to be saved from moving back home.  It's important to recognize that some (like you) did not have the option.

DC @ Young Adult Money
DC @ Young Adult Money moderator

 @MonsterPiggyBank I commuted from home for a couple of years of college and I was happy with my decision.  I definitely saved some cash.  I worry about people who are in their late 20s/early 30s and still live at home...when will they move out??

RFIndependence
RFIndependence

 @DC @ Young Adult Money I think most parents would enjoy having their kids back at home, but it is an unfair burden, if they are already in a financial stretch, or if they just want to enjoy life and can't in order to support their kids. My mum would have enjoyed having me back but the house is small and it would never have been a viable option. I have friends that stayed with their parents until they reached 30, with their mums cooking and cleaning for them, this is not how life is supposed to be. 

DC @ Young Adult Money
DC @ Young Adult Money moderator

 @RFIndependence I totally agree!  I did all my own laundry since 7th grade (My choice!) and wouldn't let my mom cook for me after high school.  My parent's house has 4 bedrooms and there is 3 kids, so having one or two living there isn't really a burden on them and they enjoy the company.  With that being said, my personal preference of course would be to not live there mainly because I'm too dang independent.  I do agree it can be an unfair burden and I shake my head seeing some people take advantage of their parents, as well as makes me wonder if they will ever move out.