More and more millennials and Gen Z are making the decision to stay child-free—and spoiler alert: it’s all about the money.
A new survey from MassMutual found that nearly 1 in 4 young adults without children (ages 18 to 43) are planning to remain childless due to rising financial concerns.
It turns out kids are really expensive. On average, a parent will spend $240,000 per kid from birth to 18—that’s a 20% jump since 2016. And with the average family shelling out $700 a month on childcare alone, it’s no wonder young adults are planning on sidestepping the whole parenting gig.
It’s not just about the cashflow, though. People under 50 are also big on lifestyle and flexibility. According to a July Pew survey, many are opting out of parenthood to save for the future, travel or just enjoy more time for themselves right now. It’s a major reason why the annual U.S. birth rate has hit a record low.
“Raising a family is a financial commitment — it has always been,” said Paul LaPiana, certified financial planner and head of brand, product and affiliated distribution with MassMutual. “We are all faced with choices every day, and there is likely room for improvement when it comes to balancing decisions about immediate gratification with long-term happiness and financial security.”
But back to the money thing: the study found that more than half of parents experience serious financial anxiety. Additionally, 40% of parents with kids under 18 admit that having children has seriously tanked their personal finances.
Even the politicians are taking notice. Both presidential candidates have thrown out ideas to expand the federal Child Tax Credit to help ease the load on parents. Vice President Kamala Harris wants a $6,000 tax credit for parents of newborns, plus a return to the pandemic-era expanded Child Tax Credit. Meanwhile, former President Donald Trump is pitching a $5,000 Child Tax Credit.
