Michelle Singletary: Doubled-up households an economic trend

Posted by Christina Lopez on September 25th, 2011

WASHINGTON — People keep asking me whether our financial times are getting any better.They are for some.

But for many, things are still bad.

The Census Bureau just released household income data noting that last year, median household income was at $49,445, a 2.3 percent decline from 2009.

And the poverty rate increased. There were 46.2 million people living in poverty last year, up from 43.6 million in 2009 — the largest number in the 52 years for which poverty estimates have been published, the bureau said.

What also caught my attention in the Census Bureau report was the number of doubled-up households, which are defined as including at least one adult, 18 or older, who is not enrolled in school and is not a spouse or cohabiting partner.

In 2007, before the recession, doubled-up households totaled 19.7 million. By this year, the number increased to 21.8 million.

Many of the people doubling up are adult children returning home. In the spring, 5.9 million young adults ages 25 to 34 lived with their parents. That’s compared with 4.7 million before the recession. Just a little more than 45 percent of those young adults doubling up would have income below the poverty threshold for a single person younger than 65, according to the Census Bureau.

Doubling up isn’t easy. There’s the potential for a lot of fights over money. People are afraid they will appear greedy or inhospitable by asking for rent or for the adult moving in to chip in for utilities and food. So they don’t ask, and then they get steamed or financially overwhelmed when their expenses rise.

You have to get the answers upfront on how you plan on handling these questions and situations. My husband and I decided long ago that we would, depending on the situation, open our home to relatives in need. But we set some ground rules.

That’s the key in these situations. Don’t double up without some understanding of what you will and won’t tolerate.

And for those moving in, there should be some ground rules, as well. Don’t do it without letting your host know your long-term intentions. If your financial situation is really bad, don’t lie and say you need to stay only three months if you suspect it might be longer. Be honest and realistic. If you’re recently divorced or have lost your job, it might take up to a year to get your financial life together.

If you’ve already opened your doors, and things aren’t going well, stop being a wimp and sit down and discuss what it will take for everyone to live happier. If you are the person providing the shelter, you need to ask detailed financial questions. So get a full picture of the financial situation of the person moving in.

If you’re doubling up with an adult so that person can pay down debts, you might agree that you won’t require rent as long as the overwhelming majority of the housemate’s income is being directed to the debt. Then set up regular meetings so that you can track the person’s progress. You’re not being intrusive by holding them accountable.

With doubling up, the goal should be to give a hand up, not a handout. You don’t want to get into a situation where you’re taking care of grown folks who needed some help initially but are now taking advantage, dragging you down financially.

Michelle Singletary writes for The Washington Post. She can be reached at singletarym@washpost.com.

Similar Posts:

Share
 

Leave a Reply