Gen z or millennial? Live with your parents to save on rent, groceries, insurance, and more.

It can be challenging trying to save money while living on your own. But what if you could cut your costs by moving back in with your parents? Believe it or not, this can be a great way to save cash.

While older generations became independent earlier in life, many millennials are coming back home. In fact, 4 in 10 millennials live with their parents. In the study, the majority mention “financial troubles” as the main reason for their return.

The gen z generation is not too far behind. One-third of gen z is living at home, largely because of the high cost of living.

When times are tough, living with your parents is the best way to save money, so when it’s time to move out, you’ll have enough savings to make good money decisions. For millennials, moving back in with their parents is often seen as a last resort. Be that as it may, it can be an opportunity to get to know them better. Or, at the very least, use the extra money to get a head start in life.

In this article, we’ll discuss all the savings that come from returning to live at home as a millennial or gen z. And how you can use that extra money to propel you in the right direction when you are ready to move out.

Expenses you don’t have to pay when you live at home



Rent is often one of the biggest expenses for young people. But if you live with your parents, you can save on rent costs.

The average rent in the Fort Lauderdale area, where we live, is $2,719. That’s according to rentcafe. If you do the math:

$2,719 x 12 = $32,628

That $32,628 doesn’t even include utilities and the rest of life’s necessities.

By living at home, young adults can save money on rent and utility bills, and they may even be able to get by without a car.

This can free up a significant amount of money each month, which can be used to pay down debt or build up savings.

In addition, living at home can provide other savings opportunities, such as sharing groceries and household items. While it may not be the ideal situation, living with parents can help young adults to save money and get their finances on track.


When you live with your parents, you have access to their kitchen, their pot, pans, and everything else you need to cook healthy meals instead of eating out. Or, if you have fantastic parents, you may not even have to cook the meals yourself. So now you are saving time and money!

According to gobanking rates, the average price of groceries is $334 for a single person. On an annual basis, that comes to $4,008 (334 x 12). That is money you could be investing in an index fund and making every dollar work for you.

In addition, your parents can help you save money on groceries by buying in bulk or taking advantage of sales.

But food is not the only area where parents can contribute. You can also save on insurance.

Don’t forget: 9 Easy & Delicious Breakfasts When You’re On A Tight Budget

Car insurance

Insurances charge young people more money for the same service that older adults get. Because insurance companies have analyzed data over decades, they know that young people are more likely to be involved in car accidents. So they charge young people more.

But if you live with your parents, you can be under your parent’s car insurance, which will generally cost less.

If they’re on the fence about whether to help out, start by stressing the importance of insurance and how it can protect you financially in the event of an accident.

You can also try to negotiate a payment plan where you cover part of the cost, and they cover the rest.

If your parents are hesitant because they think insurance is too expensive, do some research and come up with a few affordable options for them to consider.

Finally, show them that you’re responsible by staying accident-free and maintaining good grades (if you’re still in school). If you demonstrate that you’re a safe driver, they may be more likely to pitch in.

Renter’s Insurance

When you rent a home or apartment, your landlord’s insurance typically covers the structure itself – but not your personal belongings. That’s where renters insurance comes in.

A renters insurance policy helps protect your stuff from events like fire, theft, and certain types of water damage.

Although this type of insurance is generally cheap, it is still another expense you can save when living at home. The average renter’s insurance in Florida is about $200, which could cover a full year of Amazon’s prime subscriptions plus more.

Medical Expenses

Medical Expenses

If you are married, you can generally get coverage through your spouse’s employer. However, if you are unmarried or not employed, you will need to buy an individual health insurance policy. An article on this personal finance site states that the average insurance for a single person is $477 per month.

477 x 12 = $5,724

That is the amount you have to pay out of pocket. But, many millennials don’t know that you can piggyback off your parent’s health insurance until the age of 24 if you are a student.

In order to do this, you will list yourself as a dependent on one of your parent’s tax returns. Then, provide the other person’s Social Security number and prove that you are financially dependent on them.

Once you have claimed yourself as a dependent, you will be eligible for the same health insurance discounts as any other dependent.

As a young person, you may not need comprehensive health insurance, especially if you are in good health. But having health insurance can save you money if you were involved in an accident and have to cover hospital fees, which can be draining.

Afford to wait for your ideal job

Have you ever worked in a job you hated? Then, imagine if you had the time to wait for your ideal job.

This is another reason young adults live with their parents after college.

While this arrangement may not be ideal, it can give you the time you need to find your dream job. Without the pressure of rent or other bills, you can afford to take your time searching for a position that matches your skills and interests.

In addition, living with your parents will give you access to their network of connections.

You can contact family and friends and ask for introductions to potential employers. Never underestimate the power of living at home; it can be a great way to set yourself up for success in your career. With a bit of patience and effort, you can find a job that is the perfect fit for you.

Adding all the savings

Expense per year






Medical Insurance


Renter’s Insurance


Total Annual Savings


What to do with your extra money

Now that you’ve learned how much money you can keep in your account when you live home with your parents. It’s important to understand what to do with the extra cash. If you build the proper spending habits when you live at home, you’ll be prepared when it’s time to leave the nest.

Save for an emergency fund

Save for an emergency fund

Saving for an emergency fund should be a priority.

This will help you cover unexpected costs if something unexpected comes up when you’re finally on your own.

To create an emergency fund, start by setting aside a certain amount of money each month into a savings account. This will help you build up your savings over time.

When you have a savings cushion, you’ll be less likely to rely on your parents in an emergency.

Related: How To Properly Save For An Emergency Fund

Down payment for your starter home

One of the best things about saving money is that you can use it to make other essential life investments, like buying your first house. Alternatively you can pick a job that pays for housing.

This is exactly the technique I used to pay our mortgage in less than 5 years.

By moving back in with your parents and cutting your costs, you can save up a sizable down payment in just a few years. And since housing prices have been on the rise in recent years, this can be a great way to get into the market early.

Of course, there are other factors to consider when buying a house, like interest rates and your credit score.

But if you can save up enough money, moving back in with your parents can be a great way to get started on homeownership.

Not only will you have a down payment saved up, but you’ll also have a monthly mortgage payment that’s much lower than if you were renting. So start saving now, and in no time at all, you’ll be able to call yourself a homeowner!

Pay all your debt

It’s no secret that most young adults face a daunting amount of student loan debt. But those people that live at home can save more money. Money that can be put towards paying down your debt. Think about it – you won’t have to worry about rent, utilities, or other monthly bills. And, if you’re lucky, your parents might even be willing to help with groceries or other expenses.

So, if you’re struggling to pay down your debt, consider moving back home for a little while. It might not be the most fun solution, but it could save you a lot of money in the long run.

Imagine moving out with zero dollars of debt. That is something almost no one can say. Debt is one of the biggest money traps you can avoid in your 20s.


When it comes to saving money, living with your parents is one of the best things you can do.

Not only do you have a place to live rent-free, but you also have someone to help you with expenses like food, utilities, and laundry.

This can add up to a lot of savings over time, which can come in handy when you’re ready to move out on your own.

So if you’re looking for a way to save money, living with your parents is a great option. Just be sure to communicate with them about what you need and how you plan to contribute to the household. That way, everyone can live happily together and save some money in the process!

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