Being child-free is becoming a more popular lifestyle choice among women. Here's how it affects your financial situation.

• A recent report indicates that approximately 25% of millennials and Gen Zers without kids do not intend to have children in the future.
• The financial considerations for being a SINK, DINK, or DINKY differ from the standard financial plan.

Although the "childless cat lady" stereotype still exists, an increasing number of young adults are choosing to remain child-free and reaping financial benefits from their decision.

According to a recent study by MassMutual, nearly a quarter or 23% of millennials and Generation Zers without children do not plan on having children primarily due to financial reasons.

According to a survey conducted by MassMutual in July, 43% of younger generations cited a preference for financial freedom and an inability to afford children as equally important reasons.

The economy is experiencing a soft landing, but more Americans are still struggling with inflation, and even high earners feel they are not yet considered rich.

Some young adults are not having kids because of money.

But also, over decades, attitudes about marriage and parenthood have changed.

The decline in the share of married adults and the decrease in the number of couples having children has been a trend since the 1970s, as stated in a 2023 report from Pew Research Center. Additionally, the U.S. fertility rate reached a historic low last year.

A Pew Research Center study found in May that adults without children, whether married or unmarried, have a higher median wealth and retirement savings than their peers with kids.

Pew found that most adults without kids reported that not having children has made it easier for them to afford things they want and succeed in their job or career.

According to Jay Zigmont, author of "The Childfree Guide to Life and Money," although there are financial benefits to being child-free, it's not like money magically falls from the sky.

Financial considerations for SINKs and DINKs

Financial planning for SINKs, DINKs, and DINKYs requires a different approach compared to the typical strategy.

Financial planning typically assumes that couples will have children, but child-free couples have unique goals when it comes to saving, estate planning, and long-term care.

Zigmont, who plans to leave his own nephews only a modest inheritance, said that most child-free folks don't make passing money down to the next generation a priority.

Zigmont recommends clients to spend their savings instead of saving more, which may enable them to pursue a passion project or further education in the future.

Child-free adults may also bear the brunt of caregiving responsibilities for aging parents or relatives, making it even more important to take into account long-term care for themselves and their parents, which is "stupidly expensive," Zigmont said. "That's half a million dollars you need a plan for."

It's backwards from the way we are trained," he said. "How much money do I have to spend to bring down my net worth?

Parenthood is now an election issue

According to Brett House, an economics professor at Columbia Business School, decisions about parenthood involve more than just personal finance.

The impact of having or not having children on employment, wages, and wealth is an economic growth and productivity issue that affects all Americans, making it a crucial issue for policy makers and businesses.

During the lead-up to the U.S. presidential election, the issue of parenthood has emerged as a contentious topic on the campaign trail, with Ohio Sen. JD Vance, Donald Trump's running mate, criticizing key Democrats, including Vice President Kamala Harris, as "miserable 'childless cat ladies'."

In July, Vance stated on The Megyn Kelly Show on SiriusXM that his comments were not aimed at criticizing individuals who do not have children due to various reasons, but rather at criticizing the Democratic party for being anti-family and anti-child.

Taylor Swift announced her endorsement of Harris in an Instagram post featuring a photo of herself with a cat, and signed the post with her full name and "Childless Cat Lady."