The Financial Benefits of Having Children at a Young Age

Having children at a young age is an important decision in the lives of young couples. While many people prefer to postpone having children until they are more financially stable, there are some financial advantages to having children early. In this article, we will look at some of these advantages.

Avoiding the Sandwich Generation

By having children at a young age, you can avoid joining the sandwich generation, which consists of adults who find themselves squeezed between caring for their own children and their responsibilities towards elderly parents. Many who face this situation set aside their own financial needs to prioritize the needs of their children and parents. For some, this means delaying retirement and staying in the workforce longer than initially planned. Raising children is a financial challenge regardless of age. By having children early, you benefit from having fewer financial obligations at the same time.

Help from Grandparents

If you are young, it is likely that your parents and your partner’s parents are around the same age. This means they are likely in a position to offer practical help and financial assistance. More than half of grandparents with millennial children assist with childcare or household management, saving their adult children an average of $300 a week. Many grandparents also contribute financially to college education, clothing, extracurricular activities, vacations, and other expenses. This support may diminish or become completely unavailable for parents who postpone having children until their parents are older, less active, and living on lower incomes. Having children when your parents can offer help can lead to significant savings.

Greater Flexibility in Your Career

While being stable in your career is often cited as a benefit of waiting until you have children, opinions differ on whether it is truly advantageous. In a survey conducted by the Pew Research Center, 36% of respondents said that women seeking leadership positions in their careers prefer to have children early, while 40% said they should wait until their careers are more stable. (About 22% said the best option is to not have children at all.) It may be easier to manage a break for maternity leave or sick leave for childcare during a growing career than in a stable career where it might be more challenging to bear the disruption of responsibilities.

Empty Nesting Sooner

By having children early, you will still be relatively young when they leave home – provided they do not return to live in your basement. This gives you greater flexibility and freedom to focus on your financial needs in the few years leading up to retirement. You will also be in a position to offer the same support to your adult children and their families that you received when your own children were young.

Choosing the Right Path for You

Like most major life events, there is no perfect time to have children. What’s best for you depends on your unique circumstances, goals, and preferences. Regardless of the option you choose, raising children comes with significant costs. It is wise to consider the financial advantages of having children at a young age so that you can make the best decision for your family.

Sources:

• Centers for Disease Control and Prevention. “National Vital Statistics Report. Births: Final Data for 2018,” pages 4-5.
• Center

Control of diseases and prevention. “Table 1-7. Total Fertility Rates and Birth Rates by Maternal Age and Race: United States, 1940-2003″, pages 1-2.

• U.S. Department of Agriculture. “The Cost of Raising a Child”.
• TD Ameritrade. “Millennial Parents Research: The Support They Receive from Their Parents”, pages 21 and 29.
• Pew Research Center. “Women and Leadership”.

Source: https://www.thebalancemoney.com/how-having-kids-early-makes-money-sense-4148301