Millennials and Gen Z are increasingly hesitant to have children, a trend largely driven by economic concerns and the rising cost of living. As the North American fertility rate hit a historic low in 2023, it became clear that younger generations are facing significant financial challenges that impact their life decisions. Many young adults cite the high costs of housing, childcare, and healthcare as key factors deterring them from starting families. Even those with higher incomes, such as a 29-year-old earning $125,000, express concerns about managing existing student debt while potentially saving for their children’s future education expenses.
This reluctance is further compounded by the broader economic instability that these generations have experienced. Millennials, in particular, came of age during the Great Recession, which delayed many in achieving traditional milestones like marriage and homeownership. Now, as they reach the typical age for starting families, they find themselves grappling with financial insecurity and uncertainty about the future. Similarly, Gen Z faces an increasingly volatile job market and rising costs for basic necessities, making the prospect of having children seem daunting and financially burdensome.
Given these challenges, it is crucial for Millennials and Gen Z to engage in proactive financial planning. Working with financial planners and advisors can provide invaluable guidance in navigating the complexities of budgeting, saving, and investing for all stages of life. These professionals can help young adults set realistic financial goals, create effective strategies for debt management, and plan for long-term expenses such as buying a home or funding education.
