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How Should Childless Married Couples Manage Their Finances?

How Should Childless Married Couples Manage Their Finances?

Childless married couples are apparently on the rise. A 2022 Harris Poll found that while 43% of unmarried adults want to get married someday, only 28% plan on having children.

This trend has led to major growth in dual income, no kids (DINK) households – around 43% of couples are now childfree, up 7% in just the last decade.

Why the movement towards childless marriages? For 46% of people who don’t want kids, finances play a big role. High housing prices were also cited as a factor by 33%.

By remaining child-free, couples get to fully combine incomes and ditch big expenses like childcare. And it pays off – a 2021 Census study found childless adults over 55 had a median net worth of $153,900, versus just $130,400 for parents.

So, if you’re part of the growing group embracing the child-free lifestyle, this post is for you!

Decide Your Shared Money Priorities

You and your partner should have a real talk about what you want financially, both short-term and long-haul. Do you want to save up for epic yearly trips? Retire early and road trip the national parks? Chill in retirement without money stress?

Discuss your financial aims together. Knowing what you’re working and saving for makes planning, spending and saving so much simpler. Get on the same page about money priorities so you can join forces to make it happen.

Key Takeaway: Deciding financial priorities as a team lets you create a unified money strategy.

Personal finances for childless married couples

Make a Budget for Your Childfree Lifestyle

As child-free folks, you’ve got opportunities to budget in ways that maximize the fun! Track the usual fixed costs like rent, utilities, and car payments. Then, look at variable spending on dining out, travel, shopping, and hobbies.

Use apps to auto-pay bills and monitor balances. A budget tailored to your goals and values equals money, power, and success.

Key Takeaway: Make a personalized budget for your child’s lifestyle and priorities.

Max Out Retirement Savings and Investment Earnings

With no kid costs, aim to maximize retirement and investment potential. Fully utilize workplace plans like 401Ks. Fund IRAs to the max. Start investing early to benefit from decades of compound growth.

Pick diverse assets and funds based on your risk appetite. Index funds, target date funds, real estate, bonds – research smart options. Automate paycheck transfers to effortlessly build your nest egg over time.

Key Takeaway: Your extra cash flow without kids allows you to supercharge retirement savings and investment gains.

Plan for Your Future Together

One of the biggest perks of being child-free is that you can put all your time and energy into planning for your own retirement and later years. Without having to worry about setting aside money for college funds or your kids’ futures, you can completely concentrate on making sure you and your spouse are financially set for your golden years.

Aim to replace at least 80% of your current income once you retire. This will allow you to maintain a comfortable lifestyle while accounting for lower taxes and expenses. Meet with a financial advisor to come up with a retirement savings goal and strategize about how to withdraw from your retirement accounts in a tax-efficient way.

On top of retirement planning, get all your estate planning ducks in a row now while you’re young and healthy. Visit an estate planning attorney to create wills, set up medical powers of attorney, designate beneficiaries for your assets, and take care of any other end-of-life legalities. It may seem morbid to think about, but having these things squared away now prevents added stress down the road and ensures your assets are distributed according to your wishes.

Key Takeaway: You can completely concentrate on your own old-age and estate preparations.

Balance Living It Up Now and Preparing for Later

It’s important to enjoy the financial freedom that comes with a child-free life. But you also want to ensure future security. Stick to your budget limits for fun spending on travel, dining, and entertainment. Avoid lifestyle inflation as your income grows by channeling most of those extra funds into savings and investments.

Key Takeaway: Enjoy the flexibility but rein in overspending to focus on growing your nest egg.

Get Insurance Tailored to Childfree Couples

Since your insurance needs are different than families with kids, discuss your specific coverage. Protect future earning power with disability insurance. Cover one another with life insurance. Prioritize low health insurance deductibles and no network restrictions. Review annually and adjust if needed. Also, plan for potential long-term care needs.

Key Takeaway: Carefully consider insurance to protect each other from unforeseen health issues or lost wages.

Couples without children

Final Thoughts

Since more couples embrace the child-free path, you’ve got an exciting opportunity to take control of your finances. Just remember to set unified goals, budget thoughtfully, maximize savings, thoroughly plan for retirement, find a balance between fun and frugality, and get tailored insurance coverage. Here’s to living – and saving – on your own terms!

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