Despite reports that the economy is doing better, some adults who were once independent are moving back home with their parents due to financial hardship. This phenomenon has earned these adults the title “boomerang kids,â€ or “boomerangers.â€ If you’re wondering whether you’ll soon be among them, take this quiz and find out.
1. Do you have a budget?
a. Yes, but I sometimes get off track and spend more than I should.
b. Yes, I’ve devised a budget and I track my spending daily.
c. I can’t afford to be on a budget.
2. How much do you have in emergency savings?
a. I have about three months in savings, but something usually comes up and I have to dip into my account.
b. I have at least six months saved and I’m moving toward saving even more.
c. I have a hole in my pocket.
3. What does your work situation look like?
a. I’m on pretty shaky ground; I”m afraid I might be laid off.
b. My job is stable and I see myself employed there for the foreseeable future.
c. I’m unemployed and have been unable to find steady work.
4. Do you have money left over after paying bills and purchasing the bare necessities?
a. Sometimes I have money left, but it’s not enough to do much with.
b. Yes, I always have more than enough money left over.
c. If my saving habits had a movie title, it would be Gone in Sixty Seconds.
5. What’s your attitude toward money and how it relates to your quality of life?
a. I try to live below my means, but sometimes it’s hard for me to resist some purchases.
b. I live on less than what I make.
c. I plan to buy a 5-bedroom house with a pool and home theater just like my folks.
6. How much of your income do you save?
a. Less than 10%
b. More than 10%
c. None. I like to go with the flow.
How you score:
Mostly a’s: You’re doing OK, but you could do better. Sometimes you’re good with your money and sometimes you aren’t. Become more disciplined and start taking better care of your finances.
Mostly b’s: You’re handling your finances responsibly and you’re headed in the right direction. Mom and Pop will just have to see you on the weekends.
Mostly c’s: You’re just a paycheck away from being back in your old room (assuming your parents will have you). If you’re struggling to make ends meet, the only way to make up the difference is to add income or spend less. Schedule a meeting with a financial planner so that he or she can help you get back on track.