Pushing Grads Out of the Nest
June 14, 2006 — -- This is the time of year when students graduate from high school and college. But instead of going out into the world, many stay put: An astonishing 44 percent of last year's graduates are still at home. And that's just the tip of the iceberg when it comes to the problems faced by new graduates.
In addition to student loan debt, high interest credit card debt has skyrocketed, while savings rates are at record lows. And millions of young adults are without medical insurance for at least a portion of the time after they graduate.
The new "Good Morning America" series "Leaving the Nest" will help explain to parents how to help graduates deal with post-graduation concerns like living expenses, managing debt and health care.
"GMA" contributor Barbara Corcoran suggests tough love may be necessary to push new grads out of the house and help them set up their new lives. It's a process some parents dread.
One of the most difficult things parents face is pushing their children out of the nest. Even bringing up the subject can be painful.
Corcoran says she has received many e-mails on the topic, including both suggestions and war stories. Many parents recommend bringing up the topic during a long, scenic car drive -- a nonconfrontational setting that is private and provides a lot of time for conversation.
Avoiding the subject and letting your child live at home is probably the biggest no-no -- offering graduates too much help in the form of a free rent and food. But before pushing your kids out the door, it's wise to have a strategy.
Corcoran says parents must present kids with a firm exit plan -- including a deadline date and an ironclad agreement about any subsidizing the parents will do. It's a way to help them get started with an agreed-upon amount of money for a predetermined length of time.
The most important thing parents can do is make sure to stick to the parameters of the agreement.
Out on their own for the first time, many graduates don't even fully understand their expenses. They don't know how they're going to get by. But there are ways for parents to help them understand how to pay their bills without becoming too involved.
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