Tips for parents of boomerang kids + financial security secrets

For aspiring homebuyers, U.S. home prices hit an all-time high in April, according to the National Association of Realtors .

As for renting, it is unaffordable for half of renters, according to a study by the Harvard Joint Center for Housing Studies .

Which creates fertile ground for the phenomenon known as...the Boomerang Kid .

Many young adults are living with their parents because it makes so much financial sense, according to a new survey by financial-services firm Thrivent. In fact, 46% of parents say their adult children have "boomeranged" back home at some point – and 50% of them say sky-high housing costs are to blame.

“It is a little bit surprising, because I didn’t realize the numbers were so substantial,” says Alex Gonzalez , a financial adviser for Thrivent in Bloomington, Minnesota. “But it is certainly understandable that parents would help their kids get started in life," adds Gonzalez, who is, incidentally, the parent of two boomerang kids.

While a "boomerang" back to the old homestead can be the smart financial choice, it can also create a highly combustible situation. Relationships change as children become adults. And when money, history and emotions are all thrown into a blender, everything has to be handled very carefully.

Here are three tips for parents of boomerang kids via Chris Taylor .?

Are you the parent of a boomerang? What is it like to have an adult roommate –who is related to you? What advice do you have to share?

Side note: My best friend’s daughter is a boomerang kid. She is living at home in Philadelphia, but starting a job in New York City this summer, which means she will also be partially staying with me and my husband a few days a week. Not sure what that phenomenon is called yet, though!?

In lieu of money, we’re hoping she can walk the dog.

The secret to financial security

Open most personal finance books, and you will find the usual tips like how to maximize credit card rewards or get a bank fee waived.

But to create a life of real financial security , you need to think bigger and broader, according to Scott Galloway , who is a serial entrepreneur and marketing professor at 美国纽约大学 - 斯特恩商学院 .?

You likely know Galloway from his mini-empire of media outlets: His "Prof G Pod " and "Pivot " podcasts; the "No Mercy/No Malice " newsletter, and the "Prof G Show " channel on YouTube, which collectively reach millions.

Now his new book, “The Algebra of Wealth,” aims to help people stop obsessing over meaningless minutiae and get them thinking about the major themes that will truly determine their financial future.

Galloway's formula has four key components: stoicism, focus, time and diversification.?

You can read more about it here .

The best way to save for college

Yesterday was 529 Day (May 29), so I want to make a plug for my favorite college savings tool: 529 College Savings plans .?

In addition to using 529 college savings plans for our three kids, I set up accounts for my niece and nephews. (I contribute to them quarterly.) Rather than buying them more plastic toys, I’d rather give them the gift of an education.?

Depending on where you live, 529s may offer big tax benefits. Another (newish) feature of 529s: If you have any money leftover in your account, your beneficiary can use it to save for retirement .

Reuters Poll ??

Speaking of retirement, in our last poll we asked about 401(k) savings plans. I’m pleased to report that 69% of respondents say they are saving for retirement via a 401(k)!?

However, 13% of respondents said they can’t afford to save in a 401(k). You can see the results here .

And now, time for this week’s poll: Are you the parent of a boomerang kid? Take our poll here .

Why it’s time to go to the office ??

Are you working from home more often than not? It could be bad for your mental health , writes Te-Ping Chen in The Wall Street Journal.

Office chit chat, while sometimes an unwanted distraction, seems to provide more benefits than many people realize, says Jessica R. Methot , an associate professor at Rutgers University , who studies social ties at work.

In a study of 100 employees at different workplaces, Methot and fellow researchers surveyed participants at points throughout the day. They found those who had engaged in small talk reported less stress and more positivity toward coworkers.?

Even exchanging pleasantries with a coworker you barely know can help keep loneliness in check, says Sarah Wright , an associate professor at New Zealand’s University of Canterbury .?

“We used to think loneliness has to be overcome by developing meaningful relationships and having that degree of intimacy,” Wright says. “More and more, though, we’re seeing it’s these day-to-day weak ties and frequency of [interactions] with people that matters.”

Read the entire story here .

New Podcast Alert ??

Subscribe to our newest podcast: Reuters Econ World.?

Every week, Carmel Crimmins and her guests dive deep into a single economic principle driving global headlines and help listeners understand the ideas and debates shaping the global economic agenda.?

Listen here .