Sunday, February 1, 2015

The Benefits of Staying Home and Living Mooch Economics

Young people are staying home longer and delaying their inevitable jump out of the nest egg into real life. Some may wonder why this is happening when their Baby Boomers left home while still in their late late teens (18). If you think about why they are doing this and the benefits it brings them you can't blame them for smart  mooching economics.

In the past young people couldn't wait to get out of the house in hopes of striking out on their own. Working for minimum wage they took their sleeping bags and roomed with their friends. Over time they got a better job, earned more money, and eventually found someone they wanted to marry. Not long after that they were buying their very first starter home.

Those days are gone and they are not likely to become popular again soon. Over the Great Recession young people couldn't find employment, needed a degree, had material wants, and became influenced by other cultures. No longer was a healty person who was willing to work ensured that they would have a job that would support them.

When jobs aren't plentiful and it is nearly impossible to pay for much beyond car insurance, cell phone and movies it can be difficult for people to move out. A couple hundred dollars a week just isn't going to cut it with the cost of living and other expenditures are twice their income.

Of course young people also grew up during a time when they were provided with lots of electronics, toys, and cosmetics that were associated with a heightened consumer culture. Asking them to throw away the toys and surface stuff they are being judged by their peers on doesn't make a whole lot of sense at an age where image is everything.

Europeans and Middle Easterners are accustomed to staying longer in their parents house. Culture has changed and young people are looking more for security. Staying at home is fine with today's open parenting styles.  If parents aren't pushing them out they shouldn't worry about it, grab a bag of Cheetos and play a video game.

Likewise, if they are attending college and going to be saddled with debt they might as well minimize their expenses as much as possible and stay with their parents. With a little luck their parents won't kick them out until a few years after full time employment.

We may say we want our children to move out as soon as possible but that doesn't make a practical sense for those who are going to struggle to make ends meet. It is much better for them to stay home, finish college, and pay off their student loans before getting married and starting their own nest. If you want one way to lower your debt...stay home and mooch off your parents as long as possible!

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