With the number of young adults who live in their parents' homes on the rise, financial experts are offering advice to mom and dad to keep both their grown children's and their own finances under control.

The New York Life Insurance Co. website contains a list of "success factors" for parents of such young adults, who are called KIPPERS for Kids in Parents' Pockets Eroding Retirement Savings.

An article titled "Adult Children Moving Back Home: Don't Let Boomerang Kids Derail Your Goals" suggests five key rules for parents living with adult children:

• Have serious discussions about the living arrangement;

• Set expectations for adult children's behavior in the home;

• Set a time limit for the length of the stay;

• Charge rent;

• Hold adult children to any promises or agreements they make.

In addition, the article recommends that parents help create a financial plan for their children, stay on top of their own financial situations and keep themselves organized in case they need to review their records.

Barbara S. Cerf, corporate vice president of New York Life's women's market and a KIPPERS, or boomerang, parent herself, elaborated on the suggestions in an e-mail.

"It is important for parents to ensure their financial plans ... saving for retirement, are not derailed," she wrote.

"There needs to be a discussion about who pays for what, what's the anticipated length of time he/she will live at home or pay off loans, what roles do they play in the family and house rules. The conversations should be ongoing so that you know the plan is working or there needs to be adjustments made. You can be supportive emotionally and financially, but limits need to be set."

She said a financial planner could help keep both parties on track, but noted that as long as parents are mindful of how much they can do for children without jeopardizing their futures, the arrangement can benefit all parties involved.

"As long as expectations are set and there is open communication, having your son or daughter return to the nest for a specific period of time does not have to be a financial or emotional burden. It can actually be an opportunity to bond with your children and guide them in the right financial direction to achieve their goals."

-- By Deborah M. Todd

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