Approximately 13% of parents say one or more of their kids have moved back in, according to a Pew Research Center survey. According to Monster.com, about 40% of 2008 college graduates and 42% of 2006 college graduates have not even left their homes yet to start out on their own. The following mistakes, according to FoolProof, virtually guarantee that young people will be living at home again soon:
You actually believe advertising claims. “Young people need to slow down before making purchases,” deHoo said.
You don’t read the fine print. “Frankly, who can even see the fine print,” deHoo said. “But fine print, when you can decipher it, usually says the opposite of the big print.”
You impulse buy. “Virtually all advertising encourages us to impulse buy, and those purchases nearly always mean you’re making a very bad money burn.”
You shop without a list. “Make your list on a full stomach, and never deviate from the list!”
You status-buy. “If you’re paying for a label, you’re paying too much,” deHoo said.
You don’t research your purchase. “The web is a great place to learn the truth about a product or service via independent reviews.”
You’re addicted to credit cards. “Here’s how to know if you’re addicted: if you finance anything on a credit card, you have a very expensive addiction. Break the habit. Put the credit cards away and use your debit card or cash.”
You don’t shop your bank. “Why are you banking with an institution that charges you for a checking account, or charges you outrageous fees? Ever heard of a credit union?”
You still don’t budget. “Young people live for the day when they move out on their own,” deHoo said. “But here’s the problem: many of us live for the day, literally, when we move away from home. We don’t think much about the future, and we enjoy our new freedom too much, burning money without thinking.”
You don’t save money regularly. “Everybody can save money. FoolProof shows you how to set up a ‘forced’ saving plan.”
The weak economy is forcing many adult children to move back home with mom and dad. Here are common mistakes that children make that hurt their finances, according to FoolProof.