Two generations of Americans are increasingly opting against parenthood, and they blame it on the rising cost of raising children, according to a new study.
MassMutual's latest consumer spending and saving index shows that nearly 1 in 4 millennials (ages 28-43) and Gen Z'ers (ages 18-27) say they do not plan to have children because of the high cost.
But it's not just the idea that having children is cost-prohibitive for the younger generations. Forty-three percent responded that childless adults have more time and money to live comfortably.
"With today's financial stressors, it is understandable why there is a growing trend among young adults to prioritize financial security over parenthood," MassMutual senior executive Paul LaPiana said.
"This shift reflects a broader understanding of the importance of financial stability and independence in achieving long-term goals that every generation must reckon with."
The study cited a growing number of "DINKs" ("dual income, no kids") -- young couples who prefer a kid-free lifestyle. Two generations facing high housing costs and student loan balances have seen more opting against parenthood over the past half-century.
According to a 2023 Pew Research Center study, the U.S. fertility rate reached a record low last year with a 3% annual decrease. From 2014 to 2020, the rate consistently decreased by 2% annually.
While older generations may argue about the long-term value of having children, the younger Americans are not wrong about the basic fact that it costs more today to raise a family. The average annual cost of child-rearing was $21,681 in 2021, an increase of almost 20% from 2016, not to mention the battle with inflation for the past two years.
"It's completely understandable that people are scared to death of how they are going to pay to raise that kid," LendingTree chief credit analyst Matt Schulz said. "It's daunting when you consider that we don't even factor in the cost of college, for example, in these numbers."
