Boomerang

AAA

DEFINITION of 'Boomerang'

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 'Boomerang'

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 ...
  2. Household Expenses

    A per person breakdown of general living expenses. It includes ...
  3. Dual Income, No Kids - DINKS

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

    A household in which there are children and both partners earn ...
  5. Discretionary Income

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

    The amount of money that households have available for spending ...
Related Articles
  1. Time To Rethink Your Post-Work Needs
    Retirement

    Time To Rethink Your Post-Work Needs

  2. 5 Ways To Stunt A Child's Financial ...
    Savings

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

  3. Why Some Kids Never Leave The Nest
    Budgeting

    Why Some Kids Never Leave The Nest

  4. Financial Solutions For Young Women
    Budgeting

    Financial Solutions For Young Women

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center