Millennials who Live with Mom and Dad Will Need $10,000 to Move Out

Excerpt from MarketWatch, published June 20, 2019

 
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Financial freedom costs money.

One 25-year-old man living with his parents asked users of the social-media site Reddit to chime in on his mother’s advice that he save up between $10,000 and $15,000 before he moves out.

He’s debt-free, earning at least $1,800 per month and planning to rent an apartment in an area where the cheapest studio goes for $850 a month. That’s $550 more than the rent his parents make him pay now. “Is my mom right on the money,” he wondered, “or is she trying to make her baby stay with her forever?”

He’s debt-free, earning at least $1,800 per month and planning to rent an apartment in an area where the cheapest studio goes for $850 a month.

Some financial advisers told MarketWatch they also agree with his mother. Eric Walters, the founder of SilverCrest Wealth Planning in Greenwood Village, Colo., said $10,000 was a good starting point. A comfy cushion was crucial for absorbing all life’s unexpected bumps and avoiding the move back “to mom and dad’s basement,” he said, “and that’s not what anyone wants.