Living in a multigenerational home comes with a lot of good things and a few not-so-good things, especially when you are looking at your money. With rising cost of living, you can save a few bucks moving back with your family. On the other hand, it can be difficult to know where your family’s finances end and your personal ones begin.
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GOBankingRates reached out to some experts to get their takes on the three financial benefits, as well as two pitfalls, that come with living in a multigenerational home.
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Benefit: Real Savings on Housing
When you live at home with your family, chances are you are seeing a significant reduction in expenses all around. Even if you have to chip in for rent, chances are you are spending less on costs you’d normally shoulder on your own.
“One of the most obvious upsides is the ability to split major household expenses — like rent or mortgage, utilities and internet — among more people,” explained Olle Pettersson, a personal finance expert and editor at Finansplassen. “In a time of rising housing costs, this can make living in a desirable area much more affordable for everyone involved.”
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Benefit: Lower Cost of Food
According to Pettersson, buying food supplies in bulk and cooking shared meals can significantly cut food expenses.
“It also reduces waste and helps families stick to a budget more effectively than managing separate grocery lists for each household,” Pettersson said.
Aaron Razon, personal finance expert at Coupon Snake, agreed, saying that in a multigenerational home, “family members can share meals and cooking responsibilities, which would ultimately reduce the need for dining out or ordering takeouts.”
Benefit: Reduced Caretaking Expenses
If you have children or aging relatives, living at home means that you could see less of your money going to external childcare or eldercare expenses.
“Having grandparents in the home can reduce or even eliminate the need for paid childcare, while younger family members can help care for aging parents,” Pettersson said. “This mutual support can translate into thousands in annual savings, and also offers emotional benefits that are hard to quantify.”
Pitfall: Blurred Financial Boundaries
Pettersson pointed out that with multiple adults sharing a space, tensions can arise around who pays for what, which ultimately creates friction among families.
“If responsibilities aren’t clearly defined from the beginning — like how groceries, rent and household repairs are split — misunderstandings can snowball into larger issues,” Pettersson said.
Apart from the fact that disagreements can arise over financial contributions, budgeting and spending priorities, Razon highlighted that different generations may have varying financial values, expectations or responsibilities, adding that might be “because earnings and financial capabilities may vary significantly amongst family members.”
Pitfall: Risk of Financial Enabling
Ultimately, Razon said that living in a multigenerational home “may not necessarily be a ‘scratch on my back and I scratch yours’ situation, and this can lead to tension and conflict.”
If not managed carefully, family members could potentially neglect essential long-term financial goals in order to pick up the financial slack caused by other family members. There’s a fine line between supporting a family member and unintentionally enabling poor financial habits, in Pettersson’s professional opinion.
“If one generation is covering costs for another without accountability, it can create long-term financial strain and resentment,” Pettersson said. “Multigenerational living can be a smart financial strategy, especially during periods of economic uncertainty, but it requires strong communication and clear expectations. When done right, it’s not just about saving money — it’s about building a more resilient financial future together.”
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Sources
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Olle Pettersson, Finansplassen
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Aaron Razon, Coupon Snake
This article originally appeared on GOBankingRates.com: 3 Financial Benefits (and 2 Pitfalls) of Living in a Multigenerational Household
