Nearly 1 in 3 Parents in the U.S. Say Money Keeps Them From Having More Children
New survey also finds nearly half of parents think they are providing their kids with a more financially comfortable childhood compared to theirs
NEW YORK, June 14, 2023 /PRNewswire/ -- The average American middle-class family will spend $310,605 to raise a child born in 2015 to the age of 17. With these costs in mind, as well as other financial burdens Americans are facing such as rising inflation and stagnant incomes, it's no wonder that 30% of American parents agree that money keeps them from having more children.
Parents making $80,000 or more per year were more likely (62%) to say they were providing a more financially comfortable childhood than parents making less than $40,000 per year (40%). While Black parents comprised only 8% of those earning $80,000 or more, they were more likely (65%) than white (47%) or Hispanic (50%) parents to say they were providing a more financially comfortable childhood for their children.
Other findings from the Policygenius Cost of Parenting Survey include:
- 40% of parents said that if they didn't have children, they'd have more savings. 30% said they'd go on more vacations, and 26% said they'd have less debt.
- 14% of parents said they're giving their children a less financially comfortable childhood compared to their own.
- Parents in households where at least one adult has any form of life insurance are 50% more likely to say they're giving their children a more financially comfortable childhood than their own, compared to parents who have no life insurance coverage.
- What financial behaviors separate parents who think they're giving their children a more financially comfortable childhood from other parents? After having children, they were more likely to have:
- Paid down debt
- Sought a job with better pay or benefits
- Purchased disability or life insurance
- Hired a financial advisor.
- More parents want to leave their children "financially stable," as opposed to "set for life" (47% vs. 19%), after they die.
"Any parent can tell you that raising a child is expensive, but it was disconcerting to see how much parents feel like having children is holding them back from things like traveling more, retiring sooner, or even having more children. Even with those sacrifices, it was surprising to see that only about half of parents said they're giving their kids a more financially comfortable childhood than they had growing up," Myles Ma, Certified Personal Financial Counselor and personal finance expert at Policygenius, said. "That said, our results show that taking steps like buying life and disability insurance, starting an emergency fund, and consulting a financial advisor can make parents feel like they're on stronger financial footing."
Policygenius commissioned YouGov to poll 1,364 adults who confirmed being parents to at least one child. The survey was carried out online from May 4 to May 8, 2023. The results have been weighted to represent all U.S. adults. The margin of error was up to +/- 6.9% depending on the question. Percentages were rounded to the nearest whole number, so some totals may not add up to 100. You can see more data and the full methodology in the Policygenius Cost of Parenting report.
About Policygenius
Policygenius, a Zinnia company, transforms the insurance journey for today's consumer, providing a one-stop platform where customers can compare options from top insurance carriers, get unbiased expert advice, buy policies, and manage their insurance portfolio, in one seamless, integrated experience. Our proprietary technology platform integrates with the leading life, disability, and home & auto insurance carriers and delivers an exceptional digital experience for both consumers and insurance carriers. Since 2014, our content, digital tools, and experts have served as a resource for millions of people on their insurance journey, and we have sold more than $200 billion in coverage.
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For more information:
Brooke Niemeyer
Associate Director of Media Relations
[email protected]
SOURCE Policygenius
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