Don't Fall for This Myth About Childfree Finances

I decided more than three decades ago that I wasn't going to become a parent, and in the ensuing years, I've heard all the myths, stereotypes, and outright lies about people like me. One of the biggest is that people without kids are rich -- this one is frequently repeated, even in comic strip form.

Let me clear that up for you right now. I've been in this community for long enough to know that childfree finances are as varied as childfree people ourselves. Sure, we're not paying the significant costs to raise children. Research from The Motley Fool Ascent found that it costs about $310,000 to raise a child to age 17 -- that doesn't even include any money you might spend on higher education.

But missing out on those bills doesn't automatically translate to having tons of disposable cash. Here's why you shouldn't assume your friends without kids are rich. And if you are childfree, read to the end for a few ways to improve your financial standing.

Childfree people aren't exempt from financial problems

Not having kids doesn't automatically equal more money in a budget. Just like anyone else, childfree people usually work, and while we may have more flexibility for scheduling and in the types of jobs we can take than parents do, we're still bound by the economic realities of life in America. We are impacted by higher inflation in the wake of COVID-19, and we are also among the 63% of American workers who couldn't cover a $500 unplanned expense out of savings.

I know people who are struggling to keep their heads above water financially (and this was me for most of my adult life). Others are in school, or they run small businesses -- I even have a friend who does educational demonstrations to teach the lay public about reptiles! And some may not pay the bills that come with raising their own children, but they care for elderly or disabled family members and contribute money toward that effort.

How can childfree people build financial security?

I rebuilt my finances from the ground up over the last few years. I started with a career change in 2021 after spending more than a decade in a career that was emotionally and mentally rewarding, but also financially unsustainable. I was tired of having to move for jobs, and my sector (arts and culture, specifically museums) was badly impacted by COVID-19.

I switched to digital content writing and editing because it's a role that can be done from anywhere, and I also became a full-time freelancer for even greater flexibility. Thanks to increasing my income, I was able to pay off debt and build up real savings for the first time in my life. My current preoccupation is getting a mortgage and buying a home for myself because I want a stable living situation and the ability to build equity in a property.

No two childfree people are alike, but I believe many can take the same path I did. We might not necessarily be rich in money, but we are often rich in time and flexibility. Here's what to focus on to put yourself on a steadier financial path.

Save an emergency fund

Living without an emergency fund means dangling over a financial cliff and going into debt (or deeper into debt) every time an unplanned expense pops up (and they always do). The most effective way I've found to build savings is to increase your income. Consider fighting for a raise at work, increasing your hours (or taking on a side hustle, if you can), or even changing careers to earn more. And don't worry if you can't immediately put aside the recommended three to six months' worth of income right away-- any amount saved can help you avoid taking on debt.

Invest in yourself

Here it is -- the most underrated financial benefit of being childfree. Focusing on growing your job skills and certifications can help you avoid layoffs, increase your income, and even grow as a person. There are loads of free or low-cost educational resources out there, and it won't cost you a lot to meet with a career counselor. I paid about $150 to do so in 2021 when I was trying to change careers.

Meet with a financial advisor

If you need help seeing the personal finance forest for the trees, a financial advisor or planner can help. Savvy ones have realized that childfree people are an untapped demographic, and if you meet with an advisor who is at a loss to help you, there are others out there who can. Ask friends and family for recommendations, and you can plug names into FINRA's BrokerCheck database to check their bona fides.

If you thought people without kids were all up to our necks in disposable income, I hope I've relieved you of that belief. And if you don't have kids but do have financial worries, consider focusing on the above moves -- they really can help.