Do you ever feel like couples that have double income and no kids have an unfair financial advantage? While choosing not to have kids can have its financial benefits, there also are some downsides to consider. Here we’ll break down how skipping kids can change your financial future.
Benefits of Skipping Kids
Having kids is expensive. In a 2022 report, Brookings estimated the cost of raising a child through the age of 17 was $310,605 for just necessities, without college expenses. So when you think that DINKs are more financially stable, in most cases they are. DINKs completely avoid the expense of having a child and can use these funds for other purposes like savings. A study by MarketWatch found that DINKs save an average of $908 per month, while couples with children save around $413, Fortune reported. As far as retirement savings, DINKs save about $4,800 per year on average, which is 9% more than the $4,400 that DIWKs save.
DINKs aren’t just saving more, they usually make more money as well. With more time to focus on their careers, DINKs hold better jobs. According to the CPS, DINK households earn an average of $138,000 annually. That’s nearly 7% more than the $129,000 annual average for DIWK households.
So, if you ever feel like DINKs are ahead of the financial game in many ways they are. But that doesn’t mean that skipping kids is the answer to having better finances. There are some challenges to consider if you’re on the fence about having kids.
Downside of Not Having Kids
While it may seem like DINKs have all the financial advantages, that is not always the case. There are some drawbacks to not having kids and choosing a DINKs lifestyle.
First, there is some data that suggests that DIWKs aren’t that far off financially. For example, DIWK households are more likely to own a home than DINKs. According to the Census Bureau, 72% of DIWKs own their homes, compared to a homeownership rate of 59% among DINKs. Often, DINKs choose to rent instead of buying a home. This means that many DINKs are also missing out on the potential returns of investing in real estate.
Then, aging can be more costly for DINKs. Deciding not to have children can make care in DINK’s golden years more challenging. They also will have to consider what will happen to their estate if they have no immediate heirs. With planning, these challenges can be managed. For couples with children, there may be more clear answers to what happens to them in their old age. Additionally, care as they age may be more costly for DINKs. Since they can’t rely on adult children, they often have to pay for assisted living or additional help.
The Bottom Line
Having a child usually isn’t a decision just made from a financial perspective. Skipping kids might have other lifestyle implications that can only be considered from an emotional standpoint. Having a child for some couples may be extremely rewarding and fulfilling. On the other hand, some couples may enjoy their life as DINKs.
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