In Malta, as in many parts of the world, a significant trend is emerging: adult children returning to live with their parents. This phenomenon, while rooted in the Maltese tradition of strong familial support, presents both financial and emotional challenges.
The economic landscape in Malta, characterised by rising living costs and stagnant wages, mirrors the global situation, compelling young adults to seek refuge in their childhood homes. This return, while comforting, often leads to parents dipping into their retirement savings, a scenario also observed in the US.
To tackle this situation, Maltese families are encouraged to foster financial independence in their returning children. Introducing nominal rent or sharing household expenses not only alleviates the financial burden on parents but also instils a sense of fiscal responsibility in the children. This approach is crucial in preparing them for future financial autonomy.
However, the solution isn’t just financial; it’s also about open communication and setting clear boundaries. Parents need to have frank discussions with their children about the family’s financial situation, the importance of saving for retirement, and the long-term implications of depleting savings.
Moreover, it’s essential to recognise that while parental support is valuable, it should have its limits. Parents should avoid compromising their financial security and retirement plans. Strategies like setting time limits for support and encouraging children to develop their financial plans can be beneficial.
In conclusion, the return of adult children to their parental homes is a multifaceted issue. By balancing support with financial responsibility and maintaining open communication, Maltese families can navigate this period effectively, ensuring a stable future for both generations.
Luca is the founder of the Money Coaching Hub. Email him your financial questions or your response to today’s question for a chance to be featured in a future column.
Disclaimer: This column is intended to provide general information on various topics related to personal finance. The information provided is for educational purposes only and should not be construed as personalised financial advice for your specific situation. Financial decisions are highly individual and can vary greatly based on your unique circumstances, goals, and risk tolerance. The author of this column is not authorised to provide financial advice. Before making any financial decisions, it is recommended to seek professional financial advice from an authorised financial advisor.
