Boomerang

A A A

DEFINITION

An American slang term that refers to an adult who has moved back in with his or her parents (who are part of the baby boomer generation) instead of living independently. The phrase, when applied to an individual, makes reference to the fact that the person lived independently for a period, but subsequently returned home due to the financial costs associated with maintaining a separate household.

INVESTOPEDIA EXPLAINS

While boomer parents may be pleased emotionally to have their boomerangs back in the household, boomerangs can often pose a significant financial burden on their parents. This can result in a reduction in retirement savings for the boomerang's parents, leaving them with the decision to either postpone their own retirement or have their children help out with the household expenses.

Other countries have adopted similar slang to represent this domestic phenomenon. In Italy, the term "mammon", or "mama's boys" is used, while the Japanese refer to them as "parasaito shinguru", or "parasite singles". In the U.K., children boomeranging back home has given rise to the acronym KIPPERS (or kids in parents' pockets eroding retirement savings).


RELATED TERMS
  1. Nest Egg

    A substantial sum of money that has been saved or invested for a specific purpose. ...
  2. Kids In Parents' Pockets Eroding ...

    A slang term referring to adult children who are out of school and in their ...
  3. Baby Boomer

    A person who was born between 1946 and 1964. The baby boomer generation makes ...
  4. Household Expenses

    A per person breakdown of general living expenses. It includes the amount paid ...
  5. Dual Income, No Kids - DINKS

    A household in which there are two incomes and no children (either both partners ...
  6. Dually Employed With Kids - DEWKS

    A household in which there are children and both partners earn an income.
  7. Discretionary Income

    The amount of an individual's income that is left for spending, investing or ...
  8. Disposable Income

    The amount of money that households have available for spending and saving after ...
  9. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned ...
  10. Collaborative Consumption

    The shared use of a good or service by a group.
Related Articles
  1. Financial Solutions For Young Women
    Budgeting

    Financial Solutions For Young Women

  2. Retirement Savings Tips For 35- To 44-Year-Olds
    Options & Futures

    Retirement Savings Tips For 35- To 44-Year-Olds

  3. Moving Back Home: A Win-Win Situation
    Savings

    Moving Back Home: A Win-Win Situation

  4. Why Some Kids Never Leave The Nest
    Budgeting

    Why Some Kids Never Leave The Nest

  5. 5 Ways To Stunt A Child's Financial ...
    Savings

    5 Ways To Stunt A Child's Financial ...

  6. Time To Rethink Your Post-Work Needs
    Retirement

    Time To Rethink Your Post-Work Needs

  7. Tax Breaks For Canadian Families
    Retirement

    Tax Breaks For Canadian Families

  8. How An Allowance Helps Kids Get Money-Smart
    Budgeting

    How An Allowance Helps Kids Get Money-Smart

  9. New Grads: 4 Reasons To Not Leave The ...
    Retirement

    New Grads: 4 Reasons To Not Leave The ...

  10. Top 10 Investments For Baby Boomers
    Mutual Funds & ETFs

    Top 10 Investments For Baby Boomers

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center