Nearly a quarter of millennials and Gen Z adults without children say they intend to remain child-free, and the main reason is financial.
About 23% of these adults, aged 18 to 43, cited two financial motivations for not having kids: valuing the financial freedom that comes with being childless, and concerns about affording the costs of raising children, according to a new survey from MassMutual.
This data comes at a time when the U.S. birth rate has dropped to an all-time low. Other research also highlights how financial considerations are influencing decisions about starting a family. A July survey by Pew found that Americans under 50 without children opted out of parenthood for both lifestyle and financial reasons, such as saving for the future or having more time for hobbies.
Indeed, raising a child has become more expensive, with one study estimating that parents spend around $240,000 per child from birth to age 18—a 20% increase since 2016.
"Raising a family is a financial commitment. It always has been," Paul LaPiana, a certified financial planner and head of brand, product, and affiliated distribution at MassMutual, told CBS MoneyWatch. "We all face choices every day, and there is likely room for improvement in balancing decisions about immediate gratification with long-term happiness and financial security."
Because MassMutual hadn't previously asked younger generations about their reasons for not having children, their study doesn't indicate whether financial factors weigh more heavily on this decision today compared to past generations.
However, Pew’s study found that older generations—those over 50—were most likely to say they didn’t have kids because the timing wasn’t right or they never met the right partner. On the other hand, people under 50 were more likely to cite financial, lifestyle, or ethical concerns, such as environmental worries about raising children.
Financial anxiety among parents
Younger generations may have valid reasons to be cautious about the financial impact of starting a family. MassMutual’s survey found that money concerns are the top source of stress for parents with children under 18.
“It’s hard to find a parent without some level of financial stress,” LaPiana said. “It’s almost a ‘rite of passage’ into parenthood. Economic cycles come and go, and there are always factors that contribute to financial stress for parents.”
The survey of 1,000 adults, conducted in July, revealed that 51% of parents experience anxiety due to not having enough money to support their family. Additionally, about 40% of parents with children under 18 said having kids had a negative impact on their personal finances.
