Opinion: For most of American history, having children was considered part of the dream: a family, a house, and the hope of building something better for the next generation. But ask Generation Z, and you’ll hear a different story.
At the dinner table the other evening, all three of my children in their 20s talked about the possibility of not having kids and why. It broke my heart. But, more young adults are saying, “I don’t want kids.” And their reasons tell us something very important about where America is headed and the real financial realities of today’s world.
It’s the Money, Plain and Simple
Raising kids has become brutally expensive in this country. The U.S. Department of Agriculture estimates it now costs over $300,000 to raise a child to age 18 – not counting college, which can easily tack on another six figures.
More young adults are saying, “I don’t want kids.” And their reasons tell us something very important about where America is headed. (Wodicka/ullstein bild via Getty Images)
At the same time, the median home price has climbed above $411,000, making the dream of homeownership – a traditional foundation for starting a family – out of reach for many.
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Layer on student loan debt averaging $37,000 per borrower, rising child care costs, and a shaky job market filled with gig and contract work, and it’s no surprise that Gen Z feels priced out of parenthood.
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A Generation Redefining Happiness
For past generations, family and climbing the corporate ladder was the ultimate marker of success. Gen Z is rewriting the rules. Many value personal freedom, career growth and travel over traditional milestones like marriage and children. Happiness doesn’t have to mean a spouse and two kids in the suburbs anymore – it can mean financial independence, meaningful work or even online communities.
And then there’s mental health. This generation reports the highest levels of anxiety and depression of any living age group. For some, the idea of managing their own mental well-being is enough of a challenge, let alone taking on the responsibility of raising children.
Gen Z is also the first generation to grow up with climate change drilled into their heads from childhood. Polls show nearly 40% cite environmental concerns as a reason to delay or avoid having children altogether. Add in constant headlines about inflation, wars and pandemics, and many feel like the future is too unstable to responsibly bring a child into the world.
The Gender Equation
For women, the calculation is even sharper. Despite decades of progress, women still shoulder most child care responsibilities. Many in Gen Z simply don’t see motherhood as compatible with their career ambitions or the lifestyle they want. With more opportunities than ever before for women in corporate American and entrepreneurial ventures, some women are unwilling to pay the price – in time, money and freedom – that comes with raising a child.
The Bigger Problem for America
Here’s the issue: America needs babies. In 1960, the average woman had 3.6 children. Today, it’s just 1.6 – well below the replacement rate needed to sustain a healthy population. If these trends continue, we’ll face shrinking tax bases, fewer workers to support Social Security and an aging population that strains the system.
This isn’t just a lifestyle choice by Gen Z – it’s a looming demographic crisis for the country. And a looming problem for Gen X parents hoping their kids will give them a bunch of grandchildren.
As a financial advisor, I understand the hesitation. As a parent, it’s tough to swallow. Raising a family has never been more expensive or more uncertain. But if we want to preserve America’s vitality, we must make family life more affordable and attractive again – through lower housing costs, tackling inflation on day-to-day items and addressing the staggering price of child care in this country.
If Generation Z opts out of parenthood, the personal choice of millions could shape the destiny of our nation. The question is no longer why they don’t want kids – it’s whether America can afford a future without them.
