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.”