Households with Boomerang "Children"

In the 2000–01 MacroMonitor, CFD noticed some significant changes in life stages. The decrease in the proportion of single-headed households with no dependent children and the increase in the proportion of households with dependent children age 18 years and older indicated that household formation was in decline. As a result, CFD hypothesized an increase in number of dependent "children" (age 18 years and older) who could no longer count for tax purposes as dependents but are, in fact, dependent on the household. These children either failed to launch or left home and returned, resulting in Boomerang Households. In 2002, CFD began to track the phenomenon.

During the past decade, the number of Boomerang Households has continued to increase. Extended postrecessionary doldrums suggest that Boomerang Households are here to stay. In spite of a slow recovery of entry-level jobs for Millennials—and Boomer parents' reticence to leave the workforce—the two generations typically have a good relationship; many Millennials are reluctant to leave the comforts of home in exchange for independence, and many Boomer parents are equally reluctant to have them leave. Some Boomerang parents enable children's extended adolescence, including that of Millennials who have managed to establish their own households but not careers or families and have not achieved full financial independence. Boomerang Households is a new Life Stage that financially affects both parents and child.

Financial providers may be able to take advantage of the unique needs of Boomerang Households. Parents, Boomerangs, and the somewhat more successful members of Extended Adolescence have need of financial-product bundles that enable and facilitate their move to the next life stage. Life Stage change always presents opportunities for financial-services providers to develop new products, repackage products, or bundle products and services to meet household needs.

To understand better Boomerang Households' demographics, financials, goals, channel preferences, and other financial needs, MacroMonitor sponsors may request more in-depth profiles and analysis of Boomerang Households.