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More and more Millenials and Gen Xers are deciding to wait to have kids, or not have kids at all. This choice is partly financial. Having children can increase a couple’s expenses by 10% to 20%.
In the United States, a middle to high-income couple can expect to spend anywhere from $284,570 to $454,770 on a kid from birth to age 17, according to the most recent study completed by the United States Department of Agriculture in 2015.
There are a few reasons this trend is growing in popularity, and a number of upsides for couples who choose to live the kid-free lifestyle.
What Does DINK mean?
DINK is a slang term short for “dual income, no kids.” It refers to households where there are two incomes and no children.
The two incomes can either come from both partners, or one partner having two incomes.
Some couples are opting to wait longer before having kids, so they fall into the DINKY, or “dual income, no kids yet” category.
The Significance of Dual Income, No Kids
Without the added expense of children, DINK couples might potentially have more disposable income available for spending and investing. Marketing campaigns for luxury vacations, homes, and other high-end items are often targeted towards DINK couples.
However, just because a household has two incomes doesn’t automatically mean they have more money or more disposable income.
If their two incomes are not very high, they live in an expensive area, or they have spending habits that eat up a large portion of their income, their spending ability can be affected.
Why are More Couples Choosing the DINK Life?
One of the main reasons couples are choosing to wait or forego having children is financial. When the Great Recession hit in 2009, a lot of Millenials were just graduating from college or starting their careers.
The recession made it challenging to get jobs and begin investing for the future. Gen Xers lost 45% of their wealth during this time. On top of recovering from the recession, nearly half of Millenials and a third of Gen Xers have a significant amount of student loan debt.
These factors have made it difficult for young people to achieve financial milestones and start families.
Some couples choose to wait a few years before having kids after they get married. They can use this time to travel, make financial and life plans, and enjoy married life as a couple.
Structuring a DINK Household
There are many costs associated with having children, including clothing, food, healthcare, and education. Partners who don’t have children might instead choose to splurge on themselves or save up for an early retirement.
DINK couples with disposable income have many options for how to spend or invest their money. Some couples may choose to buy nice cars, while others may enjoy going out to eat.
They also potentially have more free time to travel and spend money. In general, clothing, food, or travels that may have been too expensive for couples with children can be accessible for DINK couples.
In terms of housing, a couple with no children doesn’t need as many bedrooms or as much space. They can either choose to save money by renting or buying a smaller place to live, or they can choose to use the extra space for other purposes, such as a home gym, art studio, or office.
Kids also take up a lot of time and have fairly rigid schedules with school and extracurricular activities. DINK couples may choose to take more time off for travel and leisure, or others might choose to work longer hours.
In addition to purchasing and leisure options, dual income couples have the opportunity to invest their extra money. They might purchase stocks, bonds, or real estate, or explore other opportunities.
Money Management Tips for Couples
Learning about each other’s financial habits and goals so that couples can be on the same page and have productive conversations about finances is a common suggestion.
Establishing open and honest communications before kids are in the picture may make things easier in the long run.
There are some crucial areas for couples to work on if they want to live a successful DINK lifestyle or get their finances set up before having children:
Paying Off Debts
Before setting off on a lavish vacation, it might be smart for DINK couples to pay off high-interest debts such as credit cards and student loans.
Without kids, home loans, and other monthly bills, couples may have more available funds to tackle their debt and then use the extra money they’ve saved from monthly interest payments to invest or spend elsewhere.
Creating Sustainable Spending Habits
Whether a DINK couple is waiting to have kids or doesn’t ever plan on having them, practicing sustainable spending habits is crucial for financial success. If a couple is always broke and in debt, having kids probably isn’t going to change that.
Similarly, not having kids could make it tempting to go out to eat or travel a lot. Having conversations about the type of lifestyle each person wants, as well as ong-term and retirement goals, typically helps make day-to-day spending choices easier.
Traveling Smart
Travel is a huge draw for many DINK couples, but it can quickly get expensive. If couples want to travel a lot, they might consider staying in less expensive places and skipping the luxury trips.
If luxury is important to a couple, they might think about only going on one big trip a year. Taking advantage of points credit cards and other offers might maximize their ability to see the world.
In the United States, a middle to high-income couple can expect to spend anywhere from $284,570 to $454,770 on a kid from birth to age 17, according to the most recent study completed by the United States Department of Agriculture in 2015.
There are a few reasons this trend is growing in popularity, and a number of upsides for couples who choose to live the kid-free lifestyle.
What Does DINK mean?
DINK is a slang term short for “dual income, no kids.” It refers to households where there are two incomes and no children.
The two incomes can either come from both partners, or one partner having two incomes.
Some couples are opting to wait longer before having kids, so they fall into the DINKY, or “dual income, no kids yet” category.
The Significance of Dual Income, No Kids
Without the added expense of children, DINK couples might potentially have more disposable income available for spending and investing. Marketing campaigns for luxury vacations, homes, and other high-end items are often targeted towards DINK couples.
However, just because a household has two incomes doesn’t automatically mean they have more money or more disposable income.
If their two incomes are not very high, they live in an expensive area, or they have spending habits that eat up a large portion of their income, their spending ability can be affected.
Why are More Couples Choosing the DINK Life?
One of the main reasons couples are choosing to wait or forego having children is financial. When the Great Recession hit in 2009, a lot of Millenials were just graduating from college or starting their careers.
The recession made it challenging to get jobs and begin investing for the future. Gen Xers lost 45% of their wealth during this time. On top of recovering from the recession, nearly half of Millenials and a third of Gen Xers have a significant amount of student loan debt.
These factors have made it difficult for young people to achieve financial milestones and start families.
Some couples choose to wait a few years before having kids after they get married. They can use this time to travel, make financial and life plans, and enjoy married life as a couple.
Structuring a DINK Household
There are many costs associated with having children, including clothing, food, healthcare, and education. Partners who don’t have children might instead choose to splurge on themselves or save up for an early retirement.
DINK couples with disposable income have many options for how to spend or invest their money. Some couples may choose to buy nice cars, while others may enjoy going out to eat.
They also potentially have more free time to travel and spend money. In general, clothing, food, or travels that may have been too expensive for couples with children can be accessible for DINK couples.
In terms of housing, a couple with no children doesn’t need as many bedrooms or as much space. They can either choose to save money by renting or buying a smaller place to live, or they can choose to use the extra space for other purposes, such as a home gym, art studio, or office.
Kids also take up a lot of time and have fairly rigid schedules with school and extracurricular activities. DINK couples may choose to take more time off for travel and leisure, or others might choose to work longer hours.
In addition to purchasing and leisure options, dual income couples have the opportunity to invest their extra money. They might purchase stocks, bonds, or real estate, or explore other opportunities.
Money Management Tips for Couples
Learning about each other’s financial habits and goals so that couples can be on the same page and have productive conversations about finances is a common suggestion.
Establishing open and honest communications before kids are in the picture may make things easier in the long run.
There are some crucial areas for couples to work on if they want to live a successful DINK lifestyle or get their finances set up before having children:
Paying Off Debts
Before setting off on a lavish vacation, it might be smart for DINK couples to pay off high-interest debts such as credit cards and student loans.
Without kids, home loans, and other monthly bills, couples may have more available funds to tackle their debt and then use the extra money they’ve saved from monthly interest payments to invest or spend elsewhere.
Creating Sustainable Spending Habits
Whether a DINK couple is waiting to have kids or doesn’t ever plan on having them, practicing sustainable spending habits is crucial for financial success. If a couple is always broke and in debt, having kids probably isn’t going to change that.
Similarly, not having kids could make it tempting to go out to eat or travel a lot. Having conversations about the type of lifestyle each person wants, as well as ong-term and retirement goals, typically helps make day-to-day spending choices easier.
Traveling Smart
Travel is a huge draw for many DINK couples, but it can quickly get expensive. If couples want to travel a lot, they might consider staying in less expensive places and skipping the luxury trips.
If luxury is important to a couple, they might think about only going on one big trip a year. Taking advantage of points credit cards and other offers might maximize their ability to see the world.
never change coli
