The rise of the kipper children, sucking your wallet dry
Visitors are like fish. They go off after three days.
It's a chuckle-worthy turn of phrase and reminds us not to outstay our welcome. But what if those fishy visitors are your own kids? The adult variety.
The boomerang generation of Peter Pans has attracted many labels. Their numbers are spreading through families in a viral fashion.
The British say almost half of 20 to 24 year olds live at home and a fifth of 25 to 29 year olds. The United States numbers show almost a third of 18 to 34 year olds are still under the family roof.
In keeping with the fishy origins, it seems "kippers" are on the rise. Kippers? Yes, you heard it correctly. Some wag has come up with Kids In Parents Pockets Eroding Retirement Savings. It's even better than generation app – Adults whose Parents Pay.
The worst offenders in the world seem to be the Italians with a reported eight out of 10 men aged 18 to 30 living with their mammas.
Unfortunately the researchers Manacorda and Moretti don't give us the stats on women, but Britain's Office of National Statistics reports twice as many male kippers than female kippers.
The Italians call them 'bamboccioni'. No, that's not a type of mozzarella. It means big babies.
Interestingly, the Italians report parents are happier when living with their children – the opposite of British and American parents. The experts found they buy love in exchange for their children giving up some of their independence.
The cultural quirk has led to cohabitation causing lower employment levels and lower lifetime satisfaction for young Italians.
A British survey (thinkmoney.co.uk) unveiled a few more slightly whiffy statistics. Half of British kippers do no food shopping, half pay no rent and 84 per cent of parents are still doing their laundry.
The Cause of The Kipper
While the mnemonics and numbers make for much amusement, there are many serious reasons behind the rise of the kipper.
Student debt, housing affordability and the high cost of living, are the obvious. Some parents have a streak of Italian and truly love cohabiting. Some are well off and get satisfaction from helping financially.
Whatever the reason, both sides need to bear in mind the financial and social impact they have on each other's lives.
The Cost of A Kipper
If you're a Kiwi kipper think carefully about what impact you are having on your parents KiwiSaver. It's likely they're getting close to 50 years old. Those last 15 years of saving are vital in retirement. It's a time where savings must be turbo-charged.
Even being in the house and paying your own way impacts their financial decisions. They could downsize and invest excess equity. Everything comes at a cost.
US researchers calculated the annual cost of a kipper at US$2300 a year (NZ$3500).
That sounds lightweight compared to some of the stories you hear. The marginal cost of keeping an additional adult in the house would easily reach that figure, let alone the titbits kippers are given.
Numbers like that probably won't induce much guilt, but multiply it out. If you live at home from age 18 to 28 and add on compound interest of 3 per cent, your parents KiwiSaver could have been $64,000 plumper. Even a lightweight kipper creates a big splash.
It also seems a kipper doesn't need to live at home. In another phenomenon many parents are still paying bills for kippers living down stream.
British supermarket Tesco sells mobile plans and found 35 per cent of parents still pay their child's phone bill when the little kippers were earning over £50,000 a year (NZ$108,000).
Mind you, it's easily done. Those automatic payments are all mixed up with other bills and kippers can't help their accidental silence on the matter.
To Charge or Not To Charge
The arguments for giving free rent to kippers will turn you in circles. For the sake of family relationships, make them pay.
It doesn't need to be a market rate. If you are well off, still make them pay. Stick it all in a separate account and give it back when they float off if you like. There is no crime in being generous.
It is a little unfair to solely poke fun at kippers. After all, many parents are the cause of their own issues.
Just to even things up, lets create a new label. The ploncers: Parents Letting Offspring Not Contribute Eroding Retirement Savings. Best pronounced as 'plonkers'.
Janine Starks is a financial commentator with expertise in banking, personal finance and funds management. Opinions in this column represent her personal views. They are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances.