When the Kids Move Back In

Five million young adults are currently living with their parents, according to the Census Bureau - an astounding one in eight 25- to 34-year-olds. But it's no wonder: Unemployment for people in their early twenties now touches 14%, vs. the national average of 8.5%.

New grads are having a harder time finding first jobs, and layoffs are forcing some older twentysomethings, even thirtysomethings, to return home. If your kid comes boomeranging back, use these tips to help smooth the financial transition - for both of you.

1. Consider charging token rent if the kid has income and assigning responsibilities around the home. This establishes that you're not replaying adolescence and trains new grads to manage financial obligations. Lay out expectations right away, but think about offering an initial grace period on rent.

2. Rather than offering cash outright - which doesn't teach your kid any lessons and may threaten your own financial security - offer an unemployed kid a hand in finding work. If they just can't find that perfect job, you may want to suggest that your child take a "for-now" job while continuing to look for the perfect gig.

3. First month's rent, security deposit, and moving costs add up fast. So encourage your child to have some of every paycheck deposited in a "move-out fund."

Follow these tips, and you just might get your empty nest back one day.