What a SINK, DINK or DINKY lifestyle means for your money

The stigma of the “childless cat lady” persists, but these days, more young adults are embracing that label and opting out of parenthood — and benefitting, at least monetarily.

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 recent consumer spending and saving index by MassMutual.

A preference for financial freedom and the inability to afford children are equally cited by 43% of younger generations, MassMutual found. The survey polled 1,000 adults in July.

More from Personal Finance:
‘Vibecession’ is ending as economy nails a soft landing
More Americans are struggling even as inflation cools
Even high earners consider themselves ‘not rich yet’ 

To be sure, money is a major reason some young adults are choosing not to have kids.

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

Since the 1970s, the overall share of married adults has declined and fewer couples are having children, according to a 2023 report from Pew Research Center. Last year, the U.S. fertility rate reached a historic low.

Now, adults without children, both married and unmarried, are better off than than their peers with kids, in terms of median wealth and retirement savings, a separate Pew Research Center study found in May.

The majority of adults without children said not having kids has made it easier for them to afford the things they want and be successful in their job or career, Pew also found.

Although there is a financial benefit, “it’s not like you are child-free and checks fall out of the sky,” said Jay Zigmont, author of “The Childfree Guide to Life and Money.”

In many cases, being a SINK (single income, no kids), DINK (dual income, no kids) or DINKY (dual income, no kids yet) does come with certain financial planning considerations that differ from the standard strategy.

“Nearly all financial planning assumes you do or will have kids,” said Zigmont, who is a certified financial planner and founder of planning firm Childfree Wealth. But child-free couples often have different goals when it comes to building up a cash cushion, estate planning and long-term care.

For example, “most child-free folks don’t make passing money down to the next generation a priority,” said Zigmont, who plans to leave his own nephews only a modest inheritance — “if they get $1 million, I’ve made a mistake.”

Often Zigmont advises clients to spend down their savings, rather than build it up, which could open the door to pursuing a passion project or continuing education later in life.

And while technically not part of the “sandwich generation,” 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 their parents and themselves, “which is stupidly expensive,” Zigmont said. “That’s half a million dollars you need a plan for.”

Then, consider “how much money do I have to spend to bring down my net worth,” he said. “It’s backwards from the way we are trained.”

Decisions around parenthood are not just about personal finance, said Brett House, economics professor at Columbia Business School.

Since having, or not having, children also impacts employment, wages and wealth, it is “really an economic growth and productivity issue as well,” House said — and that affects all Americans, making it “one of the most important issues for policy makers and for businesses,” House said.

Heading into a U.S. presidential election, parenthood has already become a point of contention on the campaign trail after Ohio Sen. JD Vance, the running mate of former President Donald Trump, accused key Democrats — including Vice President Kamala Harris — of being miserable “childless cat ladies.”

In July, Vance said on The Megyn Kelly Show on SiriusXM that his remarks were “not about criticizing people who for various reasons don’t have kids,” but rather “criticizing the Democratic party for becoming anti-family and anti-child.”

When Taylor Swift announced her endorsement of Harris in an Instagram post that featured a photo of herself with a cat, she signed the post with her full name and “Childless Cat Lady.”

Subscribe to CNBC on YouTube.