Millennials and Gen Z Say Financial Strain is the Primary Reason They Won’t Have Children

A growing number of Millennials and Generation Z are choosing to delay or forgo having children, citing financial concerns as a primary reason. Recent data reveals that nearly one in four individuals from these generations who are currently childless have no plans to have children in the future. Of this group, 43% point to financial challenges as a significant barrier, while others express a desire for greater "financial freedom" as the reasoning behind their decision.

A survey conducted by MassMutual found that the financial instability many young adults face is driving a shift in priorities. Paul LaPiana, a financial expert with MassMutual, explained that many young people today prioritize financial security over parenthood. The rising costs of housing, healthcare, and education, coupled with stagnant wages, have made it increasingly difficult for many to justify the financial burden of raising children.

Only 6% of people don't want kids.

Yet 60% of millennials don't have kids.

And the oldest millennials are now 40.

This can't end well. pic.twitter.com/HfwDXWqwZd

— Joshua Lisec, Ghostwriter (@JoshuaLisec) June 29, 2021

Beyond financial struggles, broader societal and political concerns are also influencing decisions about family planning. Thirty-one percent of respondents in the MassMutual survey cited concerns about the world their children would inherit, pointing to political instability, climate change, and the social environment as additional factors driving their hesitation.

The anxiety over affording a family is also shared by many who already have children, with 50% of parents reporting they worry about being able to financially support their families, and nearly 40% admitting that having children has negatively affected their financial situation​.

Millennials don’t desire children any less than previous generations.

The three major increases in childless millennials (too expensive, focus on career, haven’t found a partner) all come down to economics.

Fewer can afford kids, or know eligible singles who can. pic.twitter.com/qBgUCMkxRt

— Charlotte Broukhim (@CBroukhim) April 16, 2021

This trend is part of a broader demographic shift in the United States and many other countries, where declining birth rates have sparked fears about the future sustainability of welfare systems. The U.S. birth rate has been falling consistently since 2014, with a slight increase in 2021, only to hit a record low in 2024. At current levels, the U.S. birth rate is below the replacement rate of 2.1 children per woman, raising concerns about the future economic and social implications​.

Globally, this issue is not isolated to the United States. Many other nations are grappling with similar declines in birth rates. In 2021, over half of the world's countries reported fertility rates below the replacement level, with predictions that this trend will continue, leading to significant population declines in the coming decades. Countries like China and France have attempted to address the issue through various pro-natalist policies, but with limited success.

For example, China’s fertility rate remains at just 1.0 despite efforts to encourage larger families. Similarly, France, which offers various incentives for families, still struggles to reach the replacement fertility rate, as women continue to prioritize education and careers over early childbearing​.

As Millennials and Gen Z continue to prioritize financial independence and express concerns about the future world, many analysts are raising alarms about the potential long-term consequences of declining birth rates. A shrinking workforce may hamper economic growth and innovation, while an aging population could strain social services and healthcare systems​.