Financial Woes Push Young Americans to Forego Parenthood

Financial Concerns Drive Decision to Not Have Children

A recent survey conducted by MassMutual reveals that nearly one in four younger Americans are not planning to have children due to financial concerns. The survey, which polled 1,000 American adults between July 1-26, found that 23% of millennials and Generation Z Americans are not planning to become parents because of financial reasons.

Top Reasons for Not Having Children

The survey also discovered that not being able to take care of children and fondness of monetary freedom were equally cited as reasons to not have children (43% each). Furthermore, 31% of those who said they are not planning to have kids mentioned that it was due to the political and social world their children would grow up in.

Impact on Birth Rates

Data released by the Centers for Disease Control and Prevention (CDC) in August 2023 found that births in the U.S. dropped again between 2022 and 2023. The U.S. birth rate dipped by nearly 23% between 2007 and 2022, according to the CDC’s data. This decline in birth rates may be attributed to the increasing financial burden of raising children.

Financial Stress and Independence

Paul LaPiana, head of brand, product, and affiliated distribution with MassMutual, commented on the trend, stating, "With today’s financial stressors, it is understandable why there is a growing trend among young adults to prioritize financial security over parenthood. 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 Cost of Childbirth and Raising a Child

A Pew Research Center survey from late July 2023 found that 47% of adults under 50 without kids said they will likely not become parents. According to a LendingTree study, around $22,000 is needed to raise a small child in the country. The cost of childbirth has gone up threefold, making it even more challenging for young adults to consider having children.

Anxiety and Financial Support

The MassMutual poll also found that around 51% of those surveyed said they are anxious about not having enough money to support their kids. The biggest child-related costs were food, at 57%, and clothing, at 51%.

Conclusion

The survey highlights the growing trend of young adults prioritizing financial security over parenthood. As financial stressors continue to affect young adults, it is essential to understand the importance of financial stability and independence in achieving long-term goals.

FAQs

• What percentage of younger Americans are not planning to have children due to financial concerns?
  • 23% of millennials and Generation Z Americans are not planning to become parents because of financial reasons.
• What are the top reasons for not having children?
  • Not being able to take care of children and fondness of monetary freedom were equally cited as reasons to not have children (43% each).
• What is the impact of financial concerns on birth rates?
  • The decline in birth rates may be attributed to the increasing financial burden of raising children.
• What is the average cost of raising a small child in the country?
  • Around $22,000 is needed to raise a small child in the country, according to a LendingTree study.