Smart Finance to Avoid Becoming a Boomeranger

If you're currently enrolled as a college student, there is a rising trend that could loom as dubiously before you as the tough job market and student loan debt: being forced to move back in with your parents. According to a recent article in the NY Times, a whopping 50% (or thereabouts) of men and women aged 18-24 are living at home with their parents, while only 7% live alone -- a small and declining percentage. And the old age set, people aged 25-34 who live at home, has nearly double since the early 1980's to 20%.

Some social commentators are beginning to talk about in terms of a generation that has "failed to launch," though other stats seem to indicate that this is an unfair label. For instance, a recent census study found that about 50% of people living at home had lived by themselves before, returned home due to the economy, or both. With the economy and student debt two powerful gravitational forces, effectively pulling the trajectory of recent graduates' lives into a "boomerang" shape, being smart about your finances is key. For example, if you need a new car, perhaps you can get your parents to cosign your student car loan -- this will decrease your interest rate, meaning you pay less in the end.

Also, opt for a highly affordable, low maintenance vehicle. Most of us will concur that even the flashiest set of wheels doesn't look quite so great sitting in your parents' driveway.