Returning to the Nest

Written by: Archetype Wealth Content Team

Over 50% of young people who are graduating from college are moving back home. At one point in time this would have been considered somewhat embarrassing, but for some, it’s smart. Rent prices are at all-time highs, cost of living is only going up, and student debt is in a league of its own. Here are a few ways to ensure that returning to the nest is worthwhile and beneficial for those involved:

  1. Set a goal

Once you are back home and settled in, take time to lay out some goals. Be specific, put a timeline on them, and communicate them so that others can hold you accountable. Some of those goals may include when you want to be financially independent, how much you want to save each month, or how quickly you’d like to pay down your student debt. Whatever your goals are, write them down and get after it.

  1. Build a budget

I know this seems like an archaic idea to some young people, but one of the best things you can do when you move back home is to open a spreadsheet and build a basic budget. You can even use a template online--just have something to track your spending. This will help you accomplish your goals quicker and it helps shed light on areas where you might be spending too much money. Building a budget doesn’t mean you cannot have any fun money; it just allows you to view and allocate a certain number towards pleasure so that you can stay on track with the goals you set.

  1. Start Investing

One of the biggest mistakes young people make when they move back home is not maximizing their savings’ and investment strategy. If you are young, then there is never a bad time to get into the market. Your time horizon is too long to try and wait it out or buy in at the right time. The right time is now; the key is to start. Your 40 and 50-year-old self will be thankful you did. Set up automatic deposits into an investment account and calculate the additions into your budget. Think of it like this: a $500 deposit into your IRA every month for 30 years compounds into nearly $800,000 with an 8% annual return.

  1. Have a gratitude attitude

Lastly, be grateful. The ability to move home and save money is a privilege not afforded to everyone. It’s easy to complain and compare your situation to others, but let your desires be what drives you to accomplish your goals-- not keep you from them. Let your parents know you’re thankful by helping out where you can and remember it never hurts to tell them that you love them!


Take advantage of this time. Whether you are back home for six months, a year, or longer, it is time you will never get back. It is an opportunity to set yourself up for the future, as well as, spend time with the people who love you the most.



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[1] "More Than Half of College Graduates Are Moving in with Parents, Instead of Renting, Survey finds".


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Disclaimer: Our intent in providing this material is purely for informational purposes, as of the date hereof, and may be subject to change without notice. This article does not intend to constitute accounting, legal, tax, or other professional advice. Visitors and readers should not act upon the content or information found here without first seeking appropriate advice from a trusted accountant, financial planner, lawyer or other professional.

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