How Live-At-Home-Kids Influence Boomer Spending

Some interesting data from the USA, albeit unsurprising.

According to this article in Ad Age, somewhere between one in 10 and three in 10 millennials in the USA live at home with their parents. Other stats suggest up to 85% of graduating college seniors plan to move back home.

SJPEGome of these so-called Boomerangs are saving money by not renting, but many more just don’t have any money to save because the unemployment rates are so high for people in their 20s — almost 15% for those aged 20-24.

But how about what it does to the spending habits of their boomer parents. Turns out, in some cases there are huge and odd impacts.

The chart below illustrates some data from Experian about differences in boomer households where the kids have flown the nest and those where the birds have returned to roost. Clearly, boomer parents are sacrificing to support their kids.

The findings also showed that these boomers are also more likely to be still shopping for their kids. Retailers such as American Eagle Outfitters, Banana Republic and Express are still popular with boomers whose kids live at home, despite being more directly targeted to those kids themselves.

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