By Holly Clapp
If your college graduate is back in the spare bedroom, staring at their phone and calling it "figuring things out," you're in very good company. The path from diploma to direction isn't as straight as it used to be — and for a lot of families, the question isn't just what should they do with their life, it's what do we do in the meantime?
Here's how to think about it financially — and practically.
Set a timeline, not an ultimatum. There's a big difference between "you can stay as long as you need" and "let's agree on six months to get a plan in place." The first one removes urgency. The second one keeps things moving while still being supportive. Put it in writing if it helps — what's expected, what you'll cover, and what they need to be working toward.
Keep them on a budget — even if you're footing the bill. If they're living at home rent-free, that's fine. But they should still be tracking spending, contributing something (even symbolically), and learning to live within limits. The habits they build now are the ones they'll carry into their first apartment.
Don't let benefits lapse. Health insurance, in particular. Adult children can stay on a parent's plan until age 26, so there's no reason to let that coverage gap. But make sure they understand what they have and how to use it — a lot of young adults avoid the doctor simply because they don't know how their insurance works.
Keep that Roth IRA conversation alive. Even gig work, part-time jobs, or odd jobs count as earned income — which means they're eligible to contribute to a Roth IRA. Matching even a small amount of what they contribute can light a spark that lasts a lifetime.
If direction is the real issue, consider aptitude testing. Sometimes the problem isn't motivation — it's that your kid genuinely doesn't know what they're built for. The Johnson O'Connor Research Foundation (jocrf.org) has been helping people discover their natural aptitudes since 1922. Unlike personality quizzes or interest surveys, their testing measures innate abilities — the things your mind does easily and naturally. They have a Dallas location, and many parents and young adults find it to be one of the most clarifying investments they've made. The price tag is a fraction of what another semester of "figuring it out" costs.
Watch for the emotional undercurrent. Sometimes "I don't know what I want to do" is really "I'm overwhelmed and a little lost." This stretch of life is harder than it looks from the outside. Stay curious rather than prescriptive — ask questions, listen more than you advise, and know when the struggle is productive versus when they might need more support.
The goal of this season isn't to rush them into a career. It's to make sure that when direction does arrive — and it usually does — they haven't dug themselves into a financial hole in the meantime.
This material is for educational purposes only. The views expressed are those of the author. Holly Clapp is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. www.SIPC.org Nexus Advisors, LLC is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. OSJ address: 14241 Dallas Parkway, Suite 1200, Dallas, TX 75254; 972.348.6300. Neither MML Investors Services, LLC nor any of its subsidiaries, employees or representatives are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters. CRN2029XX-XXXXX