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Young + Smart: Four Reasons Why Living Back Home Can Be a Seriously Smart Move

By Shannon Lee Miller

Published June 13, 2019 • 3 Min Read

Living with your folks might not seem like the next logical step on the path to independence, but for many young Canadians, moving back home may be the perfect launching pad for the next phase of life. Here are just a few reasons the move back home can be a smart one.

Paying Down Student Debt

A 2017 Ipsos poll revealed that almost 70 per cent of young Canadians graduate college or university with some amount of debt. Between coughing up rent and facing the high costs of living, there may not be much left to dedicate to those looming loans at the end of the month.

Living with your parents may give you the opportunity to flex your financial muscles, build a budget, and start squashing your student debt right after graduation.

Planning your Next Steps

You’ve got the degree in hand, but now what? Mapping out the future after school can be complicated, and jumping straight into a full-time job might not be for you. Only one-fifth of young Canadians feel “very prepared” to enter the workforce after school, according to a 2018 survey by RBC and Maru/Blue, if you don’t have to worry about keeping the lights on, you may have the freedom to explore some other options.

Want to travel? Go back to school? Start your own business? If you’re still figuring out those first steps, “home sweet home” may be a great spot to do it.

Pursuing the Perfect Job

Looking for work can be, well, work. Annual data collected by Statistics Canada on the duration of unemployment among Canadians (ages 15 and up) showed that in 2018, it took candidates about 18.3 weeks to find a job.1 That’s four and a half months of résumé writing, interviewing, pavement pounding, and side hustling.

Having a solid base can help take the pressure off, and if the grind gets you down, Mom and Pop might be the perfect cheering section!

Putting Money Away for a Home

If your parents purchased their first home right after graduation, you might be feeling a little financial FOMO, but today’s real estate realities are different than they were decades ago. According to 2019 data from the Canadian Real Estate Association, the price of an average urban market home is a not-so-slim $615,300, up 40 per cent over the past five years alone.

Living rent-free not only allows you to set aside a more money for a down payment, but it can also give you more flexibility to enter the housing market when you feel ready.

Whether you’re just beginning to strategize about your next steps, or working towards your goal, living at home may free you up to step into adulthood with a little extra confidence and support.

No matter where you are at, RBC is here to help you start investing for your future.


1. Statistics Canada. Table 14-10-0057-01 Duration of unemployment, annual.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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