How to Save Money and Plan Your Next Step

Education | October 13, 2026

Living With Your Parents: How to Save Money and Plan Your Next Step

Key takeaways:

Talk with your family early on about what everyone expects, both financially and personally.
Set up automatic savings so more of the money you're saving on housing goes toward your financial goals.
You don’t have to pick a move-out date right away, but it helps to set financial goals, like building an emergency fund and saving up for a deposit on an apartment.

Whether you recently graduated from college, took a job that doesn't quite cover rent yet or are figuring out your next step, you're not alone in living with your parents. More than 25 million adults under 35 live with their parents, or nearly one in three young adults.

You might feel pressure to move out, even if doing so would stretch your budget. But staying at home a little longer can give you time to save money, pay down debt and build a stronger financial foundation. Here's how to make that time count.

How should you talk to your family about living at home?

Talking with your family about money may feel uncomfortable, but having the conversation early can prevent misunderstandings later. Discuss what everyone expects, both financially and personally.

While there's no single right amount to contribute financially, a good place to start is figuring out what you can afford while still working toward your own financial goals. You could agree to pay a set amount each month, cover certain expenses like groceries or utilities or change your contribution if your income changes.

Even if your parents don’t ask for any financial contributions, you could still contribute in other ways, such as cooking meals, helping with yard work or tidying up around the house.

It's not only about money. Make sure to talk about things like guests, schedules and how you'll share spaces.

Finally, it can be helpful to talk about how long your parents expect you to live at home.

How much money can you save by living at home?

Before you make any financial decisions, figure out how much living at home costs you and how much it helps you save.

Research average costs in your area for rent, utilities, groceries, internet and transportation. Then compare those estimated costs with what you currently contribute at home. The difference can help you understand how much you may be able to put toward your financial goals.

How can you save money while living at home?

If living at home means you have extra money, put it to work. Set up automatic savings as soon as you get paid, instead of waiting to see what's left over at the end of the month.

Depending on your goals, you might use separate savings accounts for an emergency fund, moving expenses and other priorities.

You can think of this as paying yourself “future rent” each month. For example, if you expect rent and utilities to cost $1,500 a month when you move out, start saving part of that amount now. This helps you build your moving-out fund and see if your future budget will work.

Should you save or pay off debt first?

When you have extra money, it can be hard to decide where to put it. While there’s no right order that works for everyone, you can think about it in steps:

Emergency savings. Build up savings so an unexpected expense doesn’t mean new debt.
High-interest debt. Prioritize paying off high-interest debt, especially credit card debt, since interest can add up fast.
Long-term savings. Once you've established an emergency fund and have a plan for paying down high-interest debt, consider putting more toward your long-term goals.

Set goals for moving out

Consider setting a general timeline for moving out, even if you don’t have an exact date in mind. Financial milestones can help you track your progress and decide when you may be ready.

Think about milestones like:

Establishing an emergency fund
Paying off high-interest debt
Consistent monthly savings
Predictable income
Money set aside for a housing deposit and furnishings

You don’t have to reach every milestone before moving out, but having clear goals gives you something to work toward. While you're living at home, keep building habits that support financial independence, such as paying bills, following a budget and managing your money.

Use this time to prepare for living on your own. Being intentional about your spending while your housing costs are lower can help you make more progress toward your goals.

Make living at home part of a larger financial plan

Living with your parents doesn’t have to be a step backward. Using this time to save money, pay down debt and manage your expenses can move you closer to financial independence.

The key is having a plan for the money you’re saving. Set goals that fit your situation, build a realistic budget and regularly check your progress. You’ll be better prepared to decide when moving out makes sense for you.

Explore Northwest Bank's savings options and financial planning resources. If you'd like help building a plan that fits your goals, connect with a Northwest financial professional.