A new survey from MarketWatch Guides finds couples in a DINK relationship (“Dual Income No Kids”) are four times more likely than parents to say they have no financial stress. What’s more, they accumulate money at a faster rate. DINKs report saving twice as much as parents each month ($908 instead of $413).
This makes for a compelling case for the DINK lifestyle. There is no doubt the cohort is on the rise.
According to the America’s Families and Living Arrangements data published by the US Census Bureau in November 2023, childless couples make up almost half of all coupled households, up around 7% since 2012. The trend suggests that, with mounting economic pressure, more people choose to remain childless for financial reasons.
How does living a DINK lifestyle shape discussions around financial and familial happiness?
Mouths to Feed
Children were considered valuable economic assets in earlier centuries, especially in agricultural societies. They often contributed additional labor to family farms and businesses, boosting household incomes.
Today, however, the rising education and healthcare costs have flipped that equation, prompting families to reevaluate the cost of kids carefully.
Many financial advisors aren’t surprised DINKs save at double the rate of parents.
“Even high-income households with children tend to struggle to save enough money each month,” says Jen Swindler, founder of Money Illustrated Advisory Services. “There are also typically much higher-expense vacations, holidays, and summers to plan for when accounting for children.”
“Parents have the added complexity of planning for their children’s financial future, including education and having a plan if something happens to them,” says David Nash, founder of Tend Wealth. “Add on the ever-increasing costs of childcare, and it’s no wonder DINKs report more money saved and lower financial stress.”
DINKs and parents have retirement, but besides substantially different pathways, the main differences are in long-term planning and retirement needs.
“For parents, there are several obstacles to saving for retirement,” says Nash. “The more immediate goals of education, etc., need to be addressed so they don’t impact retirement savings later on. DINKs, on the other hand, tend to have lifestyle goals to address ahead of retirement.”
DINKs can forego the startup costs of parenting. However, to retire early, they must resist the temptation of “lifestyle creep.”
“DINKs certainly save more in the short term. But as time goes on, the DINKs tend to spend that money on vacations, moves, experiences, etc.,” explains Benjamin Simerly, founder and wealth advisor of Lakehouse Family Wealth.
“When a DINK is saving money, we plan on many of the same-sized expenditures. But instead of school tuition, it’s Maui, and instead of an HSA account, it’s another pet.”
The Long Game
DINK life may generate extra savings and higher net worth at a younger age in the short- to medium-term. Yet, by skipping parenting expenses, they also miss out on the emotional support and financial safety net adult children can provide to their elderly parents. This support, especially in an emergency, can make a big difference. How do advisors plan for this eventuality?
“Most people are aware of this future reality when they choose to remain child-free,” says Swindler. “It’s important for them to keep in mind who they will contact when they need assistance, where they will live if they need to enter a care facility at some point, and how they will fund these expenses.”
Taking their carefree, youthful attitude into old age can be too easy.
“Many aging DINKs tend to forget about who will help with the services needed as they age,” says Simerly. “Who will install grab-rails in the bathroom? Who will help take out the garbage when we are away? This can certainly be planned for, but the key difference is that many DINKs end up paying for these services instead of obtaining free help from children.”
Many Americans may be on the fence about having kids; this is not an easy decision number-crunching solves. Given the issue’s intimately personal nature, advisors must uniquely guide DINKs weighing parenting with staying childless.
“The number one piece of advice I give DINKs who are debating having kids is to think about their deathbeds,” says Simerly. “Sounds grim, right? The reality is that I want to know from couples on the fence if they will die happily without children or wish they would have had kids.”
“We are working with two couples right now who are at the stage of having children but are unsure whether they can afford it,” he adds. “They are working with us on financial plans for both scenarios simultaneously.”
Ultimately, choices reflect deeply personal values and priorities. While financial pressures may deter many from trying to conceive, couples must consider long-term emotional and practical implications.
Advisors can help couples navigate this crossroads, ensuring they prepare for the joys and challenges of either path. As society evolves, these decisions will shape the financial landscape for generations.
