No joke: DINKs have four times less money stress than their parents

A new survey from MarketWatch Guides found that couples in a DINK (“Dual Income No Kids”) relationship are four times more likely than parents to say they have no financial stress. In addition, they accumulate money faster. DINKs report saving twice as much as parents each month ($908 versus $413).

This is a compelling argument for the DINK lifestyle. There is no doubt that the cohort is on the rise.

According to “America’s Families and Living Arrangements” data released by the U.S. Census Bureau in November 2023, childless couples make up nearly half of all coupled households, an increase of about 7% since 2012. The trend suggests that, given the increasing Due to economic pressure, more people are choosing to remain childless for financial reasons.

How does a DINK lifestyle influence discussions about financial and family happiness?

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The Changing Economics of Parenting

In earlier centuries, children were considered valuable economic assets, especially in agricultural societies. They often provided additional labor for family farms and businesses, thereby increasing household income.

Today, however, rising education and healthcare costs have turned that equation on its head, prompting families to carefully reevaluate the costs of having children.

Many financial advisors are not surprised that DINKs save twice as much as parents.

“Even high-income households with children often struggle to save enough money each month,” says Jen Swindler, founder of Money Illustrated Advisory Services. “When accounting for children, you usually have to plan for much more expensive vacations, vacations and summers.”

“It adds additional complexity for parents to plan for their children’s financial future, including education and a plan in case something happens to them,” says David Nash, founder of Tend Wealth. “When you factor in the ever-increasing cost of child care, it’s no wonder DINKs report more money savings and reduced financial stress.”

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Different retirement paths

DINKs and parents retire, but aside from substantially different paths, the main differences lie in long-term planning and retirement needs.

“There are several barriers for parents to save for retirement,” says Nash. “The more immediate objectives of education etc need to be addressed so that they do not impact retirement planning later on. DINKs, on the other hand, tend to pursue life goals before retirement.”

DINKs can waive the start-up costs of parenthood. However, in order to retire early, they must resist the temptation of “lifestyle creep.”

“DINKs certainly save more in the short term. But over time, DINKs tend to spend that money on vacations, moves, experiences, etc.,” explains Benjamin Simerly, founder and wealth advisor at Lakehouse Family Wealth.

“If a DINK saves money, we plan for many expenses of the same amount. But instead of tuition, it’s Maui, and instead of an HSA account, it’s another pet.”

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Planning a future without children

In the short to medium term, DINK Life can lead to additional savings and a higher net worth at a younger age. However, by foregoing parenting costs, they also miss out on the emotional support and financial safety net that adult children can provide their elderly parents. This support can make a big difference, especially in an emergency. How do consultants plan for this case?

“Most people are aware of this future reality when they choose to remain childless,” says Swindler. “It is important for them to consider who they can turn to if they need help, where they will live if they eventually need to go into a care facility, and how they will finance these costs.”

Carrying on your carefree, youthful attitude into old age can be too easy.

“Many aging DINKs tend to forget who helps with needed services as they get older,” Simerly says. “Who installs grab bars in the bathroom? Who will help take out the trash when we’re gone? This can certainly be planned, but the key difference is that many DINKs end up paying for these services instead of receiving free help from children.”

Many Americans may be on the fence about having children. This is not a simple decision that can be solved by crunching numbers. Given the very personal nature of the issue, counselors must clearly guide DINKs in balancing parenthood and childlessness.

“The most important advice I give to DINKs thinking about having children is to think about their deathbed,” Simerly says. “Sounds gloomy, right? The reality is that I want to know from married couples whether they will die happily without children or wish they had had children.”

“We are currently working with two couples who are about to have children but are not sure if they can afford it,” he adds. “They are working with us on financial plans for both scenarios at the same time.”

Ultimately, decisions reflect deeply personal values ​​and priorities. While financial pressures can deter many from becoming pregnant, couples need to consider the long-term emotional and practical implications.

Counselors can help couples navigate this crossroads and prepare for the joys and challenges of both paths. As society evolves, these decisions will shape the financial landscape for generations.

This article was produced by Media Decision and syndicated by Wealth of Geeks.