4 Money-Savvy Moves for Those Not Having Kids

Childfree folks are a growing part of the population. A 2021 survey from the Pew Research Center found that 44% of those without kids (age 18-49) said that it's not too likely or not at all likely that they'll end up becoming parents. This was an increase of 7% over 2018 findings.

As a childfree American myself, I'm well-versed in the personal finance differences between parents and non-parents. If you're creating a fabulous life without kids, these tips are for you.

1. Build emergency savings

Even without kids, life is expensive and absolutely unpredictable. An emergency car repair, a trip to the urgent care clinic, or an HVAC service appointment could each throw a wrench into your personal finances. The solution? A solid emergency fund. Experts recommend saving three to six months of bills to help you tackle an unplanned expense or even cover your expenses should you face a layoff at work.

If that sounds like an impossible figure to save, don't worry -- you can build savings over time, and a high-yield savings account can help your money grow even faster with interest. Any amount of extra cash saved can help you avoid debt when your car starts making a suspicious clunking sound.

2. Lower your taxable income

Childfree folks don't get those tax breaks that parents get, but that doesn't mean we're stuck paying higher taxes. Rather than resign yourself to writing a fat check to the IRS every spring, explore ways to lower your taxable income.

One smart way to do this is to put as much as you can into tax-advantaged retirement accounts, like a 401(k) plan offered by your employer. The contribution limit on a 401(k) is on the high side -- $23,000 for 2024 (and $7,500 more if you're age 50 or older), so don't feel like you have to meet it. It is worthwhile to at least earn your full employer match, if you're eligible for one.

Let's say you earn $60,000 this year, and your employer will match your contributions up to 3% of your salary. If you put in that 3%, it'll turn into 6% with the match -- that's $3,600. If your investments earn an 8% return (more conservative than the stock market's long-term 10% average annual return), $3,600 can turn into more than $36,000 over 30 years. Not bad.

Don't have access to an employer retirement plan? Never fear -- you have options for other investment accounts. A traditional IRA will give you an upfront tax break, while a Roth IRA gives you tax-free growth and withdrawals in retirement.

3. Invest in yourself

For me, this is an unsung benefit of opting out of having children. Since we aren't paying for the myriad costs of raising children (from diapers to tuition), this frees up our money and time to grow as professionals, and indeed, as people.

Putting effort into boosting your job skills (say, by taking classes or attending conferences in your field) can pay off in the form of higher wages and more opportunities. You might even be in a better position to survive a round of layoffs at your company if you've managed to become the kind of employee who is indispensable.

4. Embrace flexibility in your working life

Going along with investing in yourself, being childfree can come with opportunities to build a flexible life. This can be especially advantageous in the realm of your career. If you had kids, you'd be concerned about finding a job in an area that had good schools for them (or finding a fully remote job that allows you to live anywhere). You'd also need a role that lets you fulfill your many parenting duties.

People without kids don't need to worry about designing their working life around parenthood, so you can lean in on pursuing roles in places where you want to live. You might even consider becoming a digital nomad and taking your work with you around the world. Starting a small business might be more feasible for you, too. If any of this sounds appealing, start doing the research to see if you can make a more flexible and fulfilling work arrangement fit into your life.

No matter how you slice it, people without kids have a lot of opportunities to make our money work for us. Lean on the above tips to come out ahead financially.