35-Year-Old Moves in with Grandfather to Tackle Student Debt — But She's Concerned About This

A 35-year-old advertising professional in Los Angeles intends to accelerate her student loan repayment by moving in with her grandfather to avoid rent costs. She aims to clear her $73,000 (£54,664) debt within a few years by saving on living expenses but is uncertain about managing household finances and routines.

'I haven't lived with my family since high school. Is there anything I should be offering to pay for? Should I be planning to do my own chores? I'm also planning to contribute by driving him to medical appointments, doing grocery shopping, etc.,' she wrote in a post to MarketWatch.

Factors like rising living costs, weakness in US job markets, and economic volatility have made multigenerational living more common. Pew Research Center data shows that the percentage of American adults living with family increased from 7% in 1971 to 18% in 2021. Many find it an enriching experience.

Managing the New Household Dynamic

Before moving in, it's advisable for her to discuss financial responsibilities and household routines with her grandfather. Clarifying expectations—such as hosting friends, working irregular hours, or staying out late—can help prevent misunderstandings.

Financial contributions can also be discussed. Helping with transportation and groceries can strengthen their bond and reduce her grandfather's expenses, but she is not obliged to do so.

'When you outline all the expectations upfront, it reduces the chance of disappointment,' said Carolyn McClanahan, a certified financial planner.

If she drives her grandfather in his car, it's wise to ask him to include her on the car insurance. The same applies to homeowners' insurance.

Be Clear About Boundaries

She might also offer to contribute towards utility bills, which could increase when she moves in. The conversation should include her availability and routine—for example, if she will be working through lunch or staying out late.

McClanahan said one important question people often don't ask: 'What do you like your quiet time to look like?' The response indicates how much solitude and socialisation a person requires. She recommended, 'Sit down at least once a month and talk about if you're happy and what could change,' adding that over time, behaviours might gradually change as they learn more about each other.

Avoid Lifestyle Creep

While moving in with family is a savvy financial move, she should be cautious of lifestyle creep—the tendency to spend more as income rises. Without rent, she might feel tempted to spend more on non-essentials, risking her savings goals.

Not paying rent could free up a significant amount of money, which might make it tempting to allocate more of that towards guilt-free spending than student debt. To stay on track, she can adopt a personal finance plan like the 50/30/20 rule, where 50% of the income goes toward daily needs, 30% towards guilt-free spending, and 20% for savings and debt repayments.

As her fixed costs are likely to drop significantly due to no rent, she could adjust the allocations towards more savings and loan payments. McClanahan advised, 'Get together at least a small emergency fund and then start knocking away that debt.'