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Almost 1 in 4 millennials and Gen Z-ers say they won’t have kids due to finances
Almost a quarter of millennials and Gen Z adults without children say they plan to stay that way. The reason? Money.
About 23% of these adults, ranging from 18- to 43-years-old, said their financial motivation to remain childless boils down to two issues: valuing the financial freedom that comes from not having kids, as well as concerns about their ability to foot the bill for raising children, according to a new survey from MassMutual.
The findings come as the annual U.S. birth rate has slowed to a record low. Other research also points to how financial factors are influencing the decision to start a family. In a July survey, Pew found that Americans under 50 without children said they opted against kids for both lifestyle and financial reasons, such as wanting to save for the future or having more time for hobbies and interests.
And to be sure, it’s increasingly expensive to raise a child, with one study finding parents typically spend about $240,000 on each kid from birth to age 18. That’s a 20% increase from 2016.
“Raising a family is a financial commitment. It has always been,” Paul LaPiana, certified financial planner and head of brand, product and affiliated distribution with MassMutual, told CBS MoneyWatch. “We are all faced with choices every day, and there is likely room for improvement when it comes to balancing decisions about immediate gratification with long-term happiness and financial security.”
Because MassMutual hasn’t previously asked younger generations about their reasons for not having children, their study doesn’t shed light on whether money is a bigger factor today in deciding whether to have a family than compared with previous generations.
But Pew’s study found that older generations — those over 50 — were most likely to say they never had kids because it just didn’t happen, such as never meeting the right partner. By contrast, people under 50 were more likely to cite financial, lifestyle or ethical concerns, such as worries about raising children due to environmental issues.
Parents and financial anxiety
Younger generations may have good reason to be wary about the financial impact of starting a family: Money concerns are the greatest source of anxiety for parents of children under 18, MassMutual found.
“It is difficult to find a parent without some level of financial stress,” LaPiana said. “It is almost a ‘right of entry’ into parenthood. Market and economic cycles come and go, and there are always factors that impact financial stress for parents.”
The insurer’s study, which surveyed 1,000 adults in July, found that 51% of parents said they suffer anxiety due to not having enough money to support their family. And about 4 in 10 parents of children under 18 said having kids negatively impacted their personal finances.
The rising cost of raising kids, with the average family spending $700 a month on childcare, has prompted suggestions from both presidential candidates to bolster the federal Child Tax Credit. Vice President Kamala Harris, the Democratic nominee, is proposing a $6,000 tax credit for parents of newborns as well as bringing back the pandemic-era expanded Child Tax Credit. Meanwhile, former President Donald Trump’s campaign has floated the idea of a $5,000 Child Tax Credit.
“It is crucial to respect each other’s journeys as we all navigate our financial futures and make informed decisions that align with our personal values and aspirations,” LaPiana said. “My advice? Control what you can control. Monitor your financial life and adjust where you can. Make thoughtful purchasing decisions. And invest in your future.”
Police arrested a man on murder charges this month, 14 years after he allegedly killed a man in Virginia, but the victim’s body has never been found.
Shane Ryan Donahue, a Virginia man, is presumed deceased, the Prince William County Police Department said Tuesday. He was last seen leaving his parents’ home in Nokesville, Virginia, on March 22, 2010. Donahue, 23, was headed to his house in Nokesville, but never made it there.
Donahue was added to the National Missing and Unidentified Persons System after he vanished. According to records, Donahue did not have a car and regularly got rides from friends. He frequented Washington, D.C., Baltimore, Fauquier County, Virginia, and Northern Virginia.
The case stumped investigators, who followed a number of leads over the years. This spring, detectives reactivated the investigation and started looking at every detail of the case from scratch, officials said. They revisited people who had been interviewed during the initial investigation and reviewed “digital evidence in greater detail due to advances in analytical technology and modern police investigative practices,” according to a news release.
Officers said Donahue was last seen leaving his parents’ home with Timothy Sean Hickerson, now a 43-year-old Florida resident. Investigators connected Hickerson to a burglary at Donahue’s home that happened just days before the Virginia man disappeared.
Detectives got an arrest warrant this month and, with the help of Florida’s Flagler County Sheriff’s Office, Hickerson was taken into custody in Palm Coast, Florida. Hickerson was charged with murder and burglary, is now set to be extradited to Virginia.
Former President Donald Trump, an avowed proponent of tax cuts, is floating the idea of reversing a measure passed during his tenure in the White House that effectively raised taxes for many U.S. homeowners.
In a post Tuesday on Truth Social, Trump suggested he would scrap a $10,000 cap on deducting state and local taxes (SALT) that was passed as part of the 2017 Tax Cuts and Jobs Act — a massive revamp that he has said boosted economic growth.
Now, in the run-up to the November election, Trump said in the post he would “get SALT back, lower your taxes, and so much more,” although he stopped short of offering details. Trump made the post ahead of a speech he’s giving Wednesday at the Nassau Coliseum on Long Island.
Trump’s new proposal for getting rid of his $10,000 SALT deduction cap comes as the presidential hopeful is pitching several additional tax cuts that would, if enacted, reduce taxes for major groups of voters. He’s also vowed to eliminate taxes on Social Security benefits, a pledge that could get support from the nation’s senior citizens, as well as to end income taxes on tipped workers and on overtime pay, ideas that would help lower- and middle-income Americans.
Yet Trump’s reversal on the SALT deduction has sparked skepticism from lawmakers as well as economists and policy experts.
“So … now Trump is against the SALT tax cap which *checks notes* is a key part of the — only — major piece of legislation passed during his administration?” noted Chris Koski, a political science professor at Reed College in Portland, Oregon, on X.
Rep. Tom Suozzi, a Democrat from Nassau, Queens, said in a statement on Wednesday that he is “happy that the former president is saying that he has finally reversed his devastating decision in 2017 to cap the State and Local Tax (SALT) deduction.” He also urged Trump to convince Republican lawmakers to vote to restore the full deduction “if he is truly serious.”
The SALT deduction cap “has been a body blow to my constituents for the past 7 years,” Suozzi added.
Senator Chuck Schumer, a Democrat from New York, wrote on X,”Donald Trump took away your SALT dedications and hurt so many Long Island families. Now, he’s coming to Long Island to pretend he supports SALT. It won’t work.”
Asked for details about Trump’s proposal to restore the SALT writeoff, a spokeswoman for the Trump campaign told CBS MoneyWatch: “While his pro-growth, pro-energy policies will make life affordable again, President Trump is also going to quickly move tax relief for working people and seniors.”
Here’s what to know about the SALT deduction.
What is the SALT deduction?
The state and local tax deduction allows taxpayers who itemize to deduct property taxes, sales taxes and state or local income taxes from their federal income taxes. Prior to the Tax Cuts and Jobs Act, there was no limit on how much people could deduct through the SALT deduction.
But the 2017 tax overhaul passed under Trump limited the deduction to $10,000 – a blow to many homeowners in states with high property taxes, many of which are Democratic leaning. At the time of the law’s passage, the Treasury Department estimated that almost 11 million taxpayers in high-tax states like New York and New Jersey would forfeit $323 billion in deductions.
Who benefits from the SALT deduction?
Homeowners with high property taxes, such as people in New York, New Jersey and California, were the biggest beneficiaries of the the full SALT deduction.
But some experts also noted that the SALT deduction primarily put more money in the pockets of higher-earning Americans. About 80% of the full SALT deduction had helped people earning more than $100,000 a year, according to the Tax Foundation.
What happened after Trump capped the SALT deduction at $10,000?
The limit has increasingly impacted middle-class homeowners across the U.S. because of rising property taxes and incomes. Some lawmakers have also sought to either repeal or increase the SALT cap, but none of those efforts have borne fruit.
Earlier this year, some lawmakers sought to double the SALT deduction cap to $20,000 for married couples, with the change retroactive for the 2023 tax year. But that bill was blocked in the House in February.
Won’t the SALT deduction cap expire anyway?
Yes, the SALT deduction cap is a provision that’s due to expire in 2025, as are many other parts of the Tax Cuts and Jobs Act, such as a reduction of the individual tax brackets. But Trump has previously indicated he wants to extend the provisions in his signature tax law.
How much would it cost the U.S. to repeal the SALT deduction cap?
It won’t be cheap, according to the the Committee for a Responsible Federal Budget, a think tank that focuses on budget and policy issues.
Eliminating the $10,000 deduction limit “would increase the cost of extending the 2017 Tax Cuts and Jobs Act (TCJA) by $1.2 trillion over a decade,” the group estimates, adding that such a measure would be a “costly mistake.”
Extending the TCJA’s tax cuts would increase the nation’s deficit by $3.9 trillion over the next decade, the group estimates. By adding in a expiration or repeal of the SALT deduction cap, that would grow to $5.1 trillion, it added.
“Lawmakers should not extend the TCJA without a plan to – at a minimum – offset the costs of extension, but ideally the plan would raise revenues relative to current law and help put the nation’s debt on a better trajectory,” the group said in a statement.
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