These costs giving you a total of $333,162.35, to raise ONE kid!
With that said, OMG let's give us a pat on the back, a high-five, and freaking fist bump! We totally deserve it, Rockstars!
Now, GET OUT!!! (love ya, buh-bye).
Wait. What? You want to know...if you can stay awhile? Um, no. But, thanks for asking. On the flip side, we've just invested a cool quarter million in this kid; what's another, or say...10 years?!!! Welcome, to The New Millennial Life Plan. We just signed on the dotted line as a co-borrower, baby! All joking aside, much of the information out there is pointing to this new trend and has been for some time. Not since The Great Depression in 1940 have we had so many young adults hanging around the house. Granted, post-TGD, for most households this lingering on was necessary. It took everyone pulling together to make ends meet. So, whassup now? Have we raised a bunch of entitled, spoiled brats? A group of child-like adults that don't want to spend their money, but have no problem spending ours (I mean..MORE of ours). Have we failed? Did we forget a couple of life lessons on finance and hard-work in the two decades we had them? Let's not be so hard on ourselves. More than likely, it's that darn "cost of living" thing...circa, 2015.
Despite reports that we are in a "recovering" economy, unemployment is down, and wages are up (slightly) it's still not enough. Sadly.
Check out what the stats say; it's a mixed bag of good and bad.
The data is pretty unnerving. 46% of college grads in their 20's are cemented in dead-end, low-wage jobs, the highest number in decades. The number or young adults earning less than $26,000 per year has risen to it's the highest level since the '90's.
Depending on how we look at it there is a lil' bit of good stuff in this situation. In a country that started developing a strong sense of every man for himself around the Reagan era, we lost an ol' school sense of family. Not the "nice to see you on holidays" gatherings kind, but the true all-for-one-and-one-for-all kin. Why did we ever get away from that? It's called "family" for a reason. I'm not a proponent of hand-outs, but I sure am an advocate for a hand-up. Life is hard, doesn't it make sense to give our kids the best start? Yes, raising them from 0 - 18 was a great START, but let's see what we can do with a bit of ingenuity and compassion.
Here's how this cradle to grave thing could work out for the housing market.
Okay, so if we've resolved ourselves to the fact (and hopefully embraced it, because we're cool like dat) that junior is coolin' in the crib a minute longer then here is a great strategy to make this time, and plan a win-win outcome.
A.) Set a clear timetable for how long he/she is staying. Without this game plan, there is no sense of urgency (which is what drives us as human beings), and there is no sense of calm for us, either. Let's be real; it's hard to stay relaxed when you're always wondering "when is (insert whatever, here) going to end"?!!! With a clear cut plan everybody scores.
B.) Have a chat with a local lender. One of the biggest issues for Millennials is debt; and, at the top of that list is, student loans. Part of the strategy should be paying off bills, building a solid credit score, and saving. By consulting with a loan officer, families will have a clear approach to the making it happen!
C. ) Hang out at the bank a minute longer. We've got an application to fill out. Huh?
Let's take this "family bonding" to its nth degree. GO multi-generational!
Here's the breakdown of the bigger problem:
*Millennials are not earning enough money. They have too much debt and no established credit.
*Parents/Grandparents/Extended Family don't have enough space in their existing home or income to cover everyone's expenses. Bigger family. Bigger bills.
Solution
Interest rates are still low, and many older owners are Vets, so they can use a VA loan. If our kids, who are now living with us have established good credit, they might be able to go on the note. Being on the mortgage would help move them toward a home of their own within a year or two. Ok great, but what happens when the kiddos roll out, and now Ma and Pa are stuck with the mortgage? We can take that lovely equity, and refi with a nice LTV (loan to value) or sell it.
Well, that's a lot to ask. I mean all that packing, moving, unpacking. A huge commitment. Here's a little secret we signed up for that "huge commitment" at Wha!!!
Every membership has its privileges. With the M-G Membership, we get family fun, economic savings and stability, and a beautiful new home! The housing market perk is movement forward!
We went Green...now, let's go Multi-Generational! Pitch it, Sell it. Propel it!
"No man is an island; entire of itself" ~ John Donne
No comments:
Post a Comment