Charge Your Kid Rent? Suze Orman Has Some House Rules for New College Grads
Moving out isn’t cheap and many college grads are opting to stay home to save money rather than live on their own.
Despite earning degrees and preparing for independence, college graduates are moving back home in large numbers. According to a 2025 Sallie Mae survey, 64% of college graduates who left school in the past two years live with their parents.
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The growing trend is driven by a few factors. College grads are facing a challenging job market, inflated prices, soaring cost of living and high student loan debt. While younger generations were always told that going to college would land them a job, that's no longer the case. The unemployment rate for recent grads ages 22 to 27 is 5.6%, per the Federal Reserve Bank of New York. With so many young adults moving back in with mom and dad, Suze Orman believes parents should have boundaries and set a few guidelines. In a May 2026 blog post, the finance guru shared tips on how families can smartly help without breaking the bank.
Don’t Give Your Recent College Grad an Allowance Unless You’re Financially Stable
Helping a recent grad get on their feet is common practice, but unless you have extra money to spare, Orman doesn’t recommend handing out free cash. In essence, she recommends ensuring your own oxygen mask is secure before trying to help others — yes, even your kids. You're no help to them if you're struggling yourself.
That's not to say you should expect your child to afford an apartment straight out of college, but Orman recommends a low cap, and only if you have no debt with significant emergency fund savings. Then you're clear to contribute, but not cover, your kid's rent.
She went on to advise that it’s especially important to stay on track with your financial plan if you’re “within 10 or so years of retirement and aren’t truly financially secure.”
Supporting a recent graduate can be a meaningful way to help them transition into their next chapter, but Orman emphasizes that your own financial security should come first.
Only Support Needs and Not Wants
When the time comes for the college grad to move on, Orman has a clear stance on supporting needs and not wants. Yes, it's great to live in an upscale neighborhood in the nicest place on the block, but the lines between needs and wants can blur quickly, as she points out.
Orman took pains not to suggest sending your kids to live somewhere where they or you don't feel comfortable about their safety. Rather, she wanted parents to establish that children aren't entitled to dream lodgings.
She reiterated that helping a college grad become a "financially responsible adult" is important, which means helping them spend less on rent.
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College Grads Should Pay Rent
Finding the right balance between building a future and saving money is crucial, but Orman warns that setting rules up-front for rent is financially savvy. While she’s OK with letting a recent college grad live at home for free for a month or two, anything longer than that should not be a handout. Orman recommends encouraging them to get a part-time gig, enforcing structure and helping out with household duties like cooking, cleaning and running errands, which can be in exchange for rent. This, she wrote, can actually be bonding and character-building, as it keeps children connected to the family, the household and their own obligations to make things better.
The Bottom Line
Generosity shouldn't come at the expense of your financial future. According to Orman, parents can provide support, but only when doing so won't jeopardize their own long-term stability.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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