In this photo illustration, a man looks at a post by Taylor Swift endorsing Democratic presidential candidate Kamala Harris on the online social media and social networking site Instagram displayed on his smartphone on September 12, 2024 in Bath, England.
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The stigma of being a “childless cat-loving woman” persists, but more and more young people are embracing the label and giving up on parenthood these days, to the benefit of that, at least financially.
Nearly a quarter of childless millennials and Gen Zers, or 23%, don’t plan to have children, primarily for financial reasons, according to MassMutual’s recent Consumer Spending and Savings Index.
Forty-three percent of younger people rank their preference for financial freedom with their inability to afford to support their children, according to a MassMutual survey of 1,000 adults conducted in July.
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It’s true that some young people choose not to have children, but the main reason for this is money.
But over the decades, attitudes about marriage and parenting have also changed.
The overall percentage of married adults has been declining since the 1970s, and fewer couples are having children, according to a 2023 report from the Pew Research Center. Last year, the U.S. birth rate hit an all-time low.
A separate Pew Research Center survey conducted in May found that childless adults, whether married or unmarried, are currently better off than their peers with children in terms of average wealth and retirement savings.
Pew also found that a majority of childfree adults say not having children has helped them afford the things they want and made them more likely to succeed in their jobs and careers.
While there are financial benefits, “not having children doesn’t mean checks will fall from the sky,” says Jay Zigmont, author of The Childless Guide to Living and Paying for Yourself.
Financial Considerations for SINKs and DINKs
Often times, being SINK (single income, no kids), DINK (dual income, no kids yet) or DINKY (dual income, no kids yet) involves specific financial planning considerations that differ from standard strategies.
“Almost all financial planning assumes you have or will have children,” says Zigmont, a certified financial planner and founder of the planning firm Childfree Wealth. But childless couples often have different goals when it comes to cash savings, estate planning and long-term care.
For example, “most people who don’t have children don’t prioritize leaving wealth to the next generation,” said Zigmont, who plans to leave his nephews a modest inheritance. “If they get $1 million, I’ve made a mistake.”
Zsigmont often advises clients to spend down their savings rather than add to them, which could pave the way for them to pursue passion projects or continue their education later in life.
And while not technically part of the “sandwich generation,” childless adults may also be responsible for caring for elderly parents or other relatives, making it even more important to consider long-term care for them and themselves. “This is a ridiculously expensive proposition,” Zigmont says. “You need a $500,000 plan.”
And then think, ‘How much money would I have to spend to reduce my net worth?'” he said. “That’s the opposite of how we’re trained.”
Childcare is now an election issue
Brett House, a professor of economics at Columbia Business School, said parenting decisions aren’t just about personal finances.
Because having or not having children also affects jobs, wages and wealth, it’s “also an issue of economic growth and productivity,” House said, and because it affects all Americans, it’s “one of the most important issues for policymakers and businesses,” he said.
Ahead of the US presidential election, child care has already become a campaign issue after former President Donald Trump’s running mate, Senator J.D. Vance of Ohio, slammed key Democrats, including Vice President Kamala Harris, as miserable “childless cat women.”
In July, Vance said on SiriusXM’s “The Megyn Kelly Show” that his comments were “not a criticism of people who don’t have children for various reasons, but rather a criticism of the Democratic Party for having become anti-family and anti-children.”
Taylor Swift announced her support for Harris in an Instagram post featuring a photo of herself with a cat, signing the post with her full name and “childfree cat loving woman.”
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