Got a boomerang kid? There's a contract for that
Before millennials decide to bounce back to their parents’ basement, they should see the handwriting on the wall: Their folks could demand a signed contract.
Parents who fear that the “boomerang” generation -- their adult children -- will come home from college and live in their old rooms or a comfy cellar apartment, now have a countermeasure. Make your child sign a “Welcome Home Contract.”
That’s the suggestion of the National Association of Insurance Commissioners (NAIC), the organization that sets standards for insurance companies nationwide.
The bar is set pretty high. The Welcome Home Contract -- just like an insurance contract -- is top-heavy with clauses full of conditions, such as keeping “noise to a minimum” and “overnight guests are not allowed unless cleared with Parents in advance.”
And right up at the top is the buzz kill: “the adult child will find a job no later than (fill in date) and is expected to work at least (fill in number) hours a week.” There’s also a term limit: “Adult child will be expected to move out by…”
Some clauses favor the offspring, such as allowing the sanctity of her room and keeping her own hours. But most of the contract protects the parents and compels their boomerang boarder to pay her fair share of groceries, home insurance premium and cell phone bill.
There is also a “Conseqences” box and a warning, in italics, that reads, “living with my parents is a privilege” that could be “revoked at any time.”
If all this seems harsh, bear in mind that a Pew Research Center demographic study showed that nearly half of all parents are already providing financial support to at least one grown child, and more than a quarter provide “primary” support.
To make matters worse, this “sandwich generation” of parents is often simultaneously providing support to one of their parents who’s over the age of 65. In fact, for the first time in more than 130 years, adults ages 18-34 are more likely to be living with their parents than any other scenario, and housing your adult child can cost between $8,000 and $18,000 a year, said the NAIC.
“Longer life spans, decisions to marry later and the tight job market have forced many middle-aged adults to share their homes with family members across generations,” said NAIC President John Huff.
However, he added that the Welcome Home Contract shouldn’t be taken too seriously -- thus far, he hasn’t seen any of them actually filled out and signed.
But what he does hope is that the NAIC “contract” -- the second in a series on the organization’s website -- will open up a “dialogue” encouraging parents and children to talk to one another to “avoid misunderstandings.” Among the issues that you need to be clear about are just how long your child should stay, how much he should pay for the privilege and how to limit the aggravation that could come with too many adults in the house.
“Why do this?” asked Huff. “Because when you put things in writing, you can get people talking, and even an adult child still needs guidance.” He added that he and his 16-year-old daughter had benefited from discussing a similar NAIC contract on driving.
